Some small businesses struggle to maintain competitiveness

3/11/2011

When it comes to starting a new company, entrepreneurs need to ensure their products and services can compete with their rivals. This could manifest itself in a number of different ways, whether it's through providing unique products or offering low-cost services.

However, a new report from the University of Maryland's Smith School of Business indicates that many small businesses are viewing themselves as less competitive then they would like to be. One-quarter (25 percent of respondents) said they were marginally failing at maintaining competitiveness, while 28 percent said they were failing outright.

"More businesses than ever are now classified as 'failing' in competitive health based on their individual index score – the share of failing small businesses is now 28 percent, compared to 19 percent two years ago just at the onset of the recession," observes the report.

Small business owners that believe they are falling behind their competitors may want to consider acquiring more funds through commercial loans. This will help them better position their company's products and services against those of their competitors.