Small local shops encounter significant challenges competting with large supermarkets and online shops. This causes many difficulties for entrepeneurs who are looking to establish their own business.
Startup local shops face numerous challenges in the market due to the spread of large supermarkets in the map and substantial number of online shops. Large supermarkets have a reputation among customers since they offer a wide range of products, and their strong fincance background, which enables them to compete with any malls and shops. For example, Bravo supermarket still dominates the Paletinian market regardless how many supermarkets and shops open. Thus, it is very hard for a small shop to survive among these supermarkets. Another reason is that online shops offer products with low price compared to local shops as they don’t need physical shops with a good location. For instance, there is a Palestinian online shop that offers computers and their equipment at low prices. Hence, no small local shop can offer the same products with the same price.
On the other hand, governments should support small businesses by offering low taxes and low-interest loans, which supports passionate citizens to start their own businesses to improve the community. For example, some governments in Europe charge low taxes for small businesses in the first year. Therefore, several of these small local markets expand quickly. Moreover, people should encourage them by purchasing from their small shops becuase this improve the society. Therefore, this boosts the local shops owner and make them survive in their first period.
In conclusion, startup local shops cannot compete with large supermarkets regarding their reputation and capital. In addition, online shops surpass local shops due to their low-priced products. Governments can address this by offering low taxes for startup businesses, helping them survive in their first years.