The biggest problems faced by local businesses 

  • There is no longer a level playing field or market protection for locally owned businesses.
  • Many customers are no longer loyal to businesses if there are “cheaper” or “newer” alternatives.
  • The competitor may be a large national business which is better funded and/or has better marketing and/or is entrenched in the market.
  • Some national businesses can afford to make a “loss” in order to acquire customers, leaving local businesses unable to compete.
  • National competitors cost of production may be less or they may receive subsidies from outside organisations in order to compete.
  • National Chains use central purchasing departments which do not buy from local businesses only from other large companies.
  • National competitors may have a more diverse range of products or services.
  • Small to medium sized businesses may be unable to achieve the same economies of scale.
  • Large multinational companies pay little or NO Tax which gives them a huge advantage. 
  • Consumers are price range sensitive.