BlueSky Thinking Summary

The challenges to small businesses—the spines of many rural economies—are unique.

They are far more susceptible to climate change, research has shown small manufacturing firms battle more than larger ones due to limited adaptive capacity.

Second, changes in data privacy rules—like those announced by Apple—can disadvantage small businesses by very considerably increasing the cost of onboarding new customers via targeted advertising.

Amid such challenges are opportunities: other research indicates that careful small businesses may be eligible for larger loans if they have the right mindset.

In that light, consulting services have been shown to be drastically productive and growth-enhancing for small firms, especially those in developing economies.

Finally, being small can sometimes benefit small businesses in their R&D outcomes;

they often have meaningful innovations with better stock performance by simply focusing on improving small, focused steps that address specific consumer needs.

These insights underline the need for tailored support and strategic investments to help smaller businesses succeed.