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The Digital Dive in Marketing Between Big Business Vs Small Business. The Need to Support Small Businesses!

Did you know that in this rapidly evolving digital world, 71 percent of small businesses lack an online presence? Yeah, That’s true! The digital divide between small and big businesses brings challenges for small businesses. On the one hand, where big companies are using advanced technologies, smaller companies are falling behind due to a lack of resources and expertise. 

While digital marketing is a powerful tool, its potential remains untapped for many small enterprises. For example, East Palo Alto in California is a small city right next to the headquarters of tech giants like Meta and Google. East Palo Alto is a predominant Latinx community. A search shows that most of East Palo Alto’s small businesses lack a strong online presence. While big companies set huge budgets for digital transformations, many small businesses can barely afford basic digital marketing.  

According to statistics, over 73 pecent of SMBs admit a lack of confidence in their current marketing approaches. 81 percent of SMB owners are worried about how the economy might impact their companies. This gap highlights the challenges small businesses face in keeping up with their larger counterparts. While big businesses recruit professional marketing teams, small businesses must rely on strained budgets and limited staff. This brings us to the root of why the digital divide persists – lack of support for SMBs. In this blog post, we’ll cover all about the digital dive in marketing and the need to support small businesses. Read out to learn more.

Why Small Businesses Lag Behind in Digital Marketing?

Recent research indicates that small businesses employ an impressive 61.7 million Americans, yet some may still lack an online presence.

According to a Salesforce Small and Medium Business Trends report, 71 percent of SMBs survived the COVID-19 pandemic by going digital. As of 2023, the number of businesses with a website has grown to 71 percent, further reinforcing the importance of staying competitive.

Unfortunately, research shows that some small business owners predominantly Latinx and African American communities, may encounter difficulties in obtaining funding, which can lead to a lack of online presence, putting them at an even bigger disadvantage.

Top Marketing Challenges Faced by Small Businesses

Here are the top marketing challenges faced by small business owners:

  • Finding New Customers: Small businesses often lack the reach and resources to attract new customers effectively.
  • Determining What Is Working/Measuring Performance: Without the tools and expertise to track and analyze their marketing efforts, small businesses struggle to understand what strategies are effective.
  • Lack of Resources (Time, Budget, Skills): Limited budgets, time constraints, and a lack of digital marketing skills hinder small businesses from implementing comprehensive marketing strategies.
  • Choosing the Right Platform: With numerous digital platforms available, selecting the most suitable one can be overwhelming for small business owners.
  • Creating a Strategy/Plan: Developing a coherent and effective marketing strategy is a significant challenge, especially with limited resources.
  • Sending the Right Messages: Ensuring consistent brand messaging across all mediums, including brochures, digital platforms, and signage, is crucial but often challenging for small businesses.

 

The Importance of Digital Presence for Small Businesses!

In this digital age, supporting small businesses is more crucial than ever. These enterprises are the backbone of our economy, providing the most jobs in America and fostering local communities. Supporting them in establishing a strong digital footprint can lead to significant economic benefits.

How Can Local Government Help Small Businesses with Digital Marketing?

Local governments and Chambers of Commerce play a crucial role in supporting small businesses. They understand the daily challenges faced by small business owners. They help local businesses establish and optimize their digital presence on various platforms, including websites, Yelp, Facebook/Instagram for Business, Google My Business, and Google Ads.

 In response to the economic slowdown caused by the pandemic, Former Mayor Eric Garcetti launched a program in 2021 to help boost small business activity by establishing and strengthening their digital presence. The initiative proved to be successful, attracting thousands of applicants. Subsequently, the program also attracted corporate funding from tech companies.

Effects of Digital Marketing on the Growth of SMEs

Digital marketing has profound effects on the growth of small and medium-sized enterprises (SMEs). These include:

  • Brand Awareness: A strong digital presence increases brand visibility and recognition.
  • Building Trust: Consistent and engaging online interactions help build trust with customers.
  • Consumer Engagement: Digital platforms provide avenues for direct and meaningful engagement with customers.
  • Sales: Effective digital marketing strategies drive sales and revenue growth.
  • Repeat Customers, CRM: Customer Relationship Management (CRM) tools help small businesses maintain relationships with existing customers, encouraging repeat business.

 

How Does Lezama Consulting USA Help Strengthen Local Small Businesses?

 Lezama Consulting USA has extensive experience working with local governments, Chambers of Commerce, and corporations in efforts to digitize small businesses and promoting such programs to the public. We have worked with communities such as Los Angeles, California, Norwalk, California and Houston, Texas. We want to continue to do this with more communities across America. 

 

Bottom Line

The digital divide between big and small businesses is a pressing issue that needs addressing. Small businesses, especially in minority communities, face significant challenges in digital marketing. However, with the right support from local governments, Chambers of Commerce, and corporate entities, these businesses can overcome these obstacles and thrive.

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Lezama Consulting USA LLC is based in Los Angeles County, California.

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