I specifically work with small businesses. Over the last year, I have looked deeply into the challenges faced by them. I have concluded that the availability of finance and lack of business planning are not the real issues. Most of the struggling businesses lack self-assurance, and that under-confidence reflects in the decisions they make. They lose a lot of opportunities because of it.
The primary distinction between people who believe and perceive an initiative and those who give up is self-confidence. Luckily, it is a simple problem to solve. All you need is focus and determination. The cure for lower self-esteem is not overconfidence. It is getting more accurate and reliable data. Unlike large businesses, SMEs do not have easy access to benchmarking data. It is good news for SMEs who put extra effort into securing it. Ultimately, there are only two types of businesses. One thrives on removing data asymmetry, and the other thrives on creating it.
Technology has made it easier and economical to acquire and analyze data. However, the business owner needs to adopt technology and learn the basics of analytics. There is no option for it.
So, the right ingredients of success for SMEs are data, self-assurance, and perseverance.
Subodh
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