Nowadays, small enterprises struggle to compete with large businesses and various online markets. This essay explores how such a competitive environment affects local communities, and what measures can be taken to mitigate the problem.
Obviously, supermarkets and online shops have a wider range of products and lower prices; so, customers prefer shopping at the large department stores rather than at the specific ones, if they have such an opportunity. This is one of the main reasons why small shops become bankrupt. When such local stores close, employees and entrepreneurs permanently lose their jobs and sources of income, and the financial situation of community members becomes unstable and unpredictable. Moreover, many unique offers, previously introduced by sole traders, vanish and become unavailable. All of this, combined with the continuously increasing number of supermarkets in the same areas, can cause a general economic decline in the long-term future.
To improve this situation, authorities can subsidize small companies, providing tax reliefs and benefits for them. Moreover, the government needs to establish a committee or another official organisation that would be responsible for anti-monopoly market monitoring. If one huge business is predominant in the sphere, it should be restricted by the committee in order to stimulate financial growth and renew the competitive environment for entrepreneurs.
To conclude, the inability of small shops to compete with large businesses can lead to severe problems, such as economic decline, and can be detrimental in the long term. To solve this issue, authorities need to increase support for local companies and provide effective market monitoring.