This summer the Wall Street Journal launched Small Business, Big Innovation, a competition showcasing creative and innovative methods small businesses used to survive the Great Recession.
They've had dozens of entries showcasing a broad range of innovations. A couple of my favorites are:
Axle Boy Enterprises was a consumer business providing custom auto accessories. When demand fell due to the recession, they diversified by adding a business-to-business operation targeted at commercial clients. Key quote from their submission:
Using similar technology and equipment employed in the automotive side of our retail operations, we added a business that remanufactures airport ground services transportation equipment axles. This expansion operates on floor space that had been idle after a previous downsizing in 2008, more fully using our building space.
This is a great example of leveraging existing skills, capabilities and business infrastructure to enter an adjacent market.
Vidler's 5 & 10 Inc. is an 80 year old retail store who faced declining sales from 2007 to 2009. They responded by increasing their marketing and using social media. Key quote for their submission:
Full-scale marketing push starting in mid 2009: radio advertising for first time in history of business; embraced social media with Facebook page, Twitter and blog updates; new and revised website; use of Google Adwords and online review sites. Regular emails to growing customer base... 2010 gross sales one of best years ever; exceeding 2009 by close to 19% — best year-over-year increase in our history. 2011 is on pace to meet or beat 2010.
I love this story. Independent 5 & 10 stores are a dying breed. But by adopting new marketing tactics and methods, Vidler's is showing independent retailers can not only survive but thrive.
I really like this contest because it helps dispel the myth that small businesses aren't innovative. The reality is innovation is part of a the DNA of a small business and they innovate both reactively and proactively. They innovate reactively in response to customer, market and competitive pressures. They innovate proactively by scanning for and acting on new business opportunities.
We cover this topic in more detail in our Defining Small Business Innovation research memo.
There are many more great small business innovation stories at the site. Voting goes on until the end of September and the winners will be announced in November. Take a look by clicking here.
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