Small Businesses are disappearing and being replaced by Large Multinational Companies

In recent years, the world has witnessed a significant shift in the business landscape, with small

businesses

disappearing and being replaced by large multinational companies.

While

there are many reasons for

this

trend, the rise of globalization and technological advancement are two major factors contributing to the decline of small

businesses

. In

this

essay, I will explore these factors and their impact on the small business sector. One of the primary reasons why small

trade

units are disappearing is the rise of globalization. The integration of markets and the lowering of

trade

barriers have allowed multinational companies to access new

trade

areas and compete more effectively.

As a result

, they have been able to leverage economies of scale and scope, benefit from lower production costs, and generate higher profits. Another factor that has contributed to the decline of small

businesses

is the rapid pace of technological change. Advances in technology have enabled multinational corporations to automate processes, reduce labour costs, and improve efficiency.

In contrast

, micro-enterprises may lack the resources to invest in the latest technologies, which puts them at a competitive disadvantage. A good example of the replacement of small

businesses

with large online retail marketplaces in Kazakhstan is the Wildberries and Lamoda multinational platforms with fast and free door-to-door delivery, free fitting service and affordable prices. The impact of the disappearance of small enterprises is significant, as they are often seen as the backbone of the economy, through creating jobs and contributing to local communities.

In addition

, small

trade

units are often more attuned to the needs of their customers and are better able to provide personalized service. Conglomerates,

on the other hand

, often prioritize profits over customer satisfaction and may be slower to respond to quickly changing market conditions. Despite the challenges facing small

businesses

, there are still many opportunities for them to thrive. One way is by focusing on niche markets that are not served by large corporations.

For example

, small traders that specialize in artisanal or handmade products may be able to compete with larger corporations that focus on mass-produced goods. In conclusion,

while

the disappearance of small

businesses

is a concerning trend, it is not inevitable. By focusing on niche markets, leveraging their agility and flexibility, and embracing new technologies, small

businesses

can continue to succeed in a changing business landscape. It is crucial to recognize the value of small

businesses

and take steps to support their growth and development, thereby promoting a more diverse, resilient, and vibrant economy.