David vs Goliath: The Rise of Small Companies

Disruptors drive change, and drive growth

Small companies are taking an increasingly powerful position in markets across the world, and their innovative, responsive approach to business is disrupting and challenging larger, more traditional companies.

Technology, food and beauty are key areas for dynamic start-ups

Start-up success is not limited to any one sector. However, at a global level, a significant rise in the combined share of companies outside the top 20 is visible in areas such as mobile gaming and health foods, where the consumer base is typically young and hungry for change.

Positioning advantages: ethics, local and the personal touch

From a marketing perspective, small companies play well in fields where values such as ethics, authenticity, natural, local and personal are important. These are values that big business struggles to replicate.

Operational advantages: Lean, responsive and low-cost

Small businesses can also leverage some operational advantages. A small, tight company structure can support a responsive, fast-moving business culture and allow companies to react quickly to consumer demand.

A fertile environment

The environment is positive for the small business. Start-up is facilitated by crowdfunding, while numerous apps help to automate everyday admin. The growing freelance culture also means that the small business can easily grow while keeping its headcount small, its structure lean and its costs low. New routes to market, from online marketplaces to pop-ups, mean that all types of business can test their market with a minor financial commitment.

Exit strategies: large companies keen to acquire

Longer-term, exit strategy potential is excellent. For larger companies, acquisition is a key tool for tapping into niche areas, gaining authenticity, and gaining some degree of control over creative and disruptive forces.