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Mom-and-Pop Businesses Vs Mega Chains

According to the US Small Business Administration, there are 28.8 million small businesses in the US. Small businesses, which include those with fewer than 500 employees, represent 99.7% of all business in the US. Between the middle of 2009 and the middle of 2013, small businesses created 60% of the jobs.

When it comes to larger stores, 20 of the largest US-based supermarket and grocery store chains are ranked alongside the 250 largest retailers in the world thanks to the revenue they have. Of the 250 world’s largest retail chains, 25% are classified as strictly being supermarket and grocery store food retailers as the 2014 Global Powers of Retailing report from Deloitte Touche Tohmatsu and STORES Magazine shows.

Small Businesses Vs Supermarkets

Globally, Europe plays a dominant role in the world’s food retailing: 26 of the largest 63 supermarket companies are based in European countries.

The 2016 list of Top 100 World’s Largest Retail Chains is comprised of 29 supermarket chains and retail grocery stores, not including the hypermarkets, warehouse clubs, discount stores, drug stores, convenience stores, and online retail websites. These also have grocery and food retailing as a major category in their retail business.

Food retailing is the main reason why global mega retail chains play a dominant role in retailing. The US Department of Agriculture (USDA) reports that global food retail sales account for over $4 trillion annually.

According to a survey conducted in the US, which was based on about 16.000 firms with fewer than 500 employees, over 60% reported they expected more revenue in 2017 than in 2016, and around 40% expected to expand their workforce.

How Small Businesses Survive

A US Bank study shows that 82% of businesses fail because of cash flow problems. If you’re a mom-and-pop business owner in need of mom and pop business funding, turn to First American Merchant, a top high risk business funding provider and payment processor. offers unmatched business financing opportunities and the lowest possible rates in the industry. FAM is rated A+ by the BBB.

Small business owners contribute so much time, commitment and labor to make their businesses both come to life and stay alive. To stay afloat, you shouldn’t try to compete with larger chains on price. They should focus on your comparative advantages like instant gratification, convenience, and a warmer, more personable experience. You, as a small business owner, must be passionate about what you do.

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