"The secret of change is to focus all of your energy not on fighting the old, but on building the new." – Socrates
There is currently much discussion about the impact of globalization and digitalization on local communities and small and medium-sized enterprises (SMEs). Many fear that these developments will lead to a situation where small businesses are overshadowed by large corporations, but digitalization does not necessarily mean the loss of potential for SMEs. On the contrary, digitalization can actually strengthen the resilience and competitiveness of local businesses.
What if, as a small or medium-sized business owner, you approached digitalization and AI differently? This could empower you and create more opportunities, regardless of the size of your business.
A clear example of this can be seen in the food industry. With the rise of digital technologies, farmers and small producers now have the opportunity to sell their products directly to consumers, without the involvement of large supermarkets or distribution companies. Through their own webshop or app, these entrepreneurs can quickly and easily offer their products to a wide audience. This can be set up quickly in the current times, at low costs, and is very easy to manage on your own. Like anything, you need to invest some time to understand it, but it is certainly not rocket science to put your products online. Moreover, digitalization enables them to maintain and expand their local customer base. This can be done through personalized marketing campaigns, newsletters, or updates on the availability of seasonal products.
Although online marketing can present challenges, especially for smaller businesses with limited resources, there are many effective local strategies that can be implemented. Consider distributing flyers, organizing local events, or collaborating with other local entrepreneurs. This collaboration creates synergy, which not only increases the visibility of individual businesses but also contributes to a vibrant and sustainable local economy. A strong local economy always has a positive impact on the community; people work better together, know each other better, and feel more connected to their surroundings.
Of course, large corporations will always play a role in our economy, with both positive and negative effects. However, it is important to recognize that the concentration of power in the hands of a few major players has historically often been detrimental to diversity and innovation. For example, consider the late 19th century, when the rise of large oil monopolies like Standard Oil under John D. Rockefeller led to the exclusion of smaller competitors. This resulted in less diversity in the market and hindered technological innovation. Ultimately, this led to the implementation of antitrust laws to limit the concentration of power. Therefore, it is essential that we continue to make space for unique, small-scale initiatives by entrepreneurs who operate with passion and commitment to their communities.
When people and businesses are given the space to develop their unique qualities and ideas, new opportunities for growth and innovation emerge. This is especially true for SMEs, which form the backbone of many economies, particularly in the Netherlands. It is important that these businesses do not see digitalization solely as a threat but also as an opportunity to innovate and strengthen their competitive position. By taking a creative and locally focused approach to digital technologies, businesses can better serve their customers and secure their future.
An example of this is a local bakery that shares daily offers with neighborhood residents through an app, or a small-scale winemaker who offers special tastings and subscriptions via an online platform. By leveraging digitalization smartly, these businesses can not only reach their immediate customer base but also tap into new markets, without the intervention of large chains.
AI is primarily a tool; assuming that AI will take over everything and that robots are coming is premature. No one knows exactly how this will develop. As with every technological leap, such as the car or the iPhone, there will be advantages and disadvantages. The car changed the world by giving us more freedom in how we move, and the iPhone changed how we communicate, enabling global collaboration and giving rise to the concept of the digital nomad.
In short, even at the time when the car was introduced, both negative and positive arguments could be made. But as long as we place humans and life at the center, and not an app or AI, much is possible. At its core, people want to collaborate, meet each other, be inspired, disagree, and come up with better ideas. Life is, after all, about trial and error. A world in which only one system is dominant will eventually damage itself (think of the history of the Soviet Union, Mao's China, the Roman Empire, etc.). The boundless creativity of humans is likely something that AI can never fully replicate; however, AI can reproduce existing ideas faster. See AI as a tool that can speed up many processes, leaving more time for entrepreneurship and creativity.
In short, digitalization and AI offer a range of opportunities for SMEs to stand out and thrive, even in an era where large corporations seem to be becoming increasingly dominant. It requires a change in mindset and a willingness to embrace new technologies, but the potential to strengthen the local economy is enormous.
