smallbusiness.co.uk: Helping your business think big

Small businesses in the UK can compete with larger firms by offering niche products or a specialist service.

That is the view of the British Retail Consortium (BRC), whose spokesperson Richard Dodd says that online retailing is a particular opportunity for small firms to expand their range of services and become more competitive.

As an example of the potential held by the web, statistics from the Entertainment Retailers Association show that the retail market for online music grew from £39 million to £89 million between 2005 and 2006.

Mr Dodd says that online retailing is a viable option for small retailers: 'Smaller retailers - those that are doing well - are those that recognise that they can't compete with the larger retailers in terms of price; but they can compete in terms of the kind of goods they sell.'

They therefore need to identify 'niche markets that aren't being met by big retailers', he says, noting that service is also important.

The internet also provides a terrific opportunity for small businesses to carry out advertising. This sector is set to grow six times faster than traditional media until 2009, Zenith Optimedia predicts.