Write an academic report to recommend ways to

protect small businesses due to the growth of

retail chain stores. You may want to discuss the
advantages of small businesses, the benefits and
drawbacks of retail chain stores, with reference to
the situations in different contexts, or anything
else that can justify your recommendations.
1.Introduction
It is far-ranging criticized that retail stores cause destruction among small businesses.
(B. Cotton &J. Cachon, 2016). However, contributing a lot to local communities,
small businesses also enjoy many advantages that retail stores lack, which can resist
the giants to some extent. This report makes an in-depth exploration in the advantages
of small businesses, and recommends several practical ways to protect small business
in a better way, making fully use of the advantages listed above. It begins by listing
some inborn advantages of small business, then moves to useful methods to protect
small businesses against chain retail stores. Finally, it concludes with the coexist of
two types of businesses.
2. Inborn advantages of small businesses
2.1 Realistic needs: satisfaction of immediate needs
Many customers enjoy the various choices of goods and clean environment offered by
hypermarket. The one-stop-shopping is unique and threatening small businesses. (S.
Hawkes &T. Morrison, 2016) While the big luxury names are attracting people, chain
retail stores always locate in the suburb far away from customers (S. Holmes,2016).
This gives small business a good opportunity to win customers with immediate needs.
With a favorable geographical position, small businesses do well in meeting everyday
basic purchase. Residents are convenient to shop at nearby stores, rather than driving
a long distance.
2.2. The well-being of local communities
2.2.1. Contribution to local communities: visible and invisible
On the one hand, retail stores open more branches with the aim of chasing for profit.
However, small businesses often feel an emotional need to thank people who come
and shop. In another word, small businesses would like to give something financial
back to the community. On the other hand, interpersonal relationships give customers
a sense of support and friendship as well as a community feeling. Serving as the
linking point between residents, small business is an necessary component in local
communities because it supplies places and possibility for residents’ daily
communication, which helps to develop a harmonious atmosphere. Many local
residents also acknowledge the significance of small businesses’ existence. Thus they
are willing to visit a local small store frequently. (S. Hawkes and T. Morrison,2016)
2.2.2. Maintaining local style
With eye-pealing and uniform signboard, retail stores always appear incompatible
with local architectural style. S. Holmes (2016) argued that as the displacement going
further, the local characters will be weakened even fall into mediocrity, which also
decrease the sense of identity of local dwellers. Thus, the investment to communities
will be deducted.
2.3. Customer loyalty
Small businesses’ owners live in the neighborhood, thus meeting their potential
customers on a regular basis, which is likely to build a solid service relationship. This
salesperson-customer relationship is especially highly thought in Asia and Latin
America. This precious and durable relationship is the exact thing that retail stores
most welcome.
3. Response to the new competition
3.1. Shop-keepers: making fully use of advantages over retail chain stores.
While the chain retail stores have high-end products, amazing air condition system and
other size-related strengths, small businesses are appreciated by their close proximity.
Shop keepers can supply fresh vegetable and fruits directly coming from nearby farms
(R. Shannon ,2016). They can select the healthiest and greenest products in person,
which attracts neighbors at a relatively cheaper price. Offering freshness, lower,
personalized service, small businesses are supposed to set their strategy close to
people’s everyday life. Beside delicious and healthy products, the good relationship
between salespeople and customers can also enhance customers’ dependence to the
small stores, encouraging people around to continue purchasing at the same store.
3.2. Government : introducing retail regulation
S. Cho; L. Chung; and J. Park (2017) pointed out that declining rates of development
of retail stores has been witnessed since 1996 due to retail regulations. Referring to
Korea, , government usually restrict retail stores’ expanding in many aspects. For
example, government restrict the opening hours of retail chain stores within a limited
period, and new retail outlets cannot be opened too close to traditional small businesses.
There is no doubt that government are expected to shoulder up the toughest part to
introduce more powerful regulations to develop small businesses.
4. Conclusion
The expansion of giant retail stores around the world does bring certain undesirable
impacts on local small businesses. Facing this great challenge, small businesses are
supposed to be aware of their inherent advantages and make good use of them.
Government officials should also introduce more practical regulation to protect small
businesses. However, with two distinct operation strategies, both of them can make
great contribution to local economic. In the future, the most expected result should be
the co-exist of both format, leading to a win-win situation.[words:790]

References:
B. Cotton&J. Cachon.(2016).Small Business Entrepreneurship. New York: Public
Policy Research
R. Shannon.(2016).The International Review of Retail, Distribution and Consumer
Research.24(5),531-543.
S. Cho,L. Chung,&J. Park(2017)Journal of Distribution Science.12(9 ),5-13
S. Hawkes, &T. Morrison.(2016).International Journal of Retail and Distribution
Management.45(4), 446-462.
S. Holmes.(2016) Community Development.41(4),431-452.