The digital age has brought massive changes in the way businesses operate, and even local businesses that have traditionally relied on conventional methods now have the opportunity to broaden their horizons. Technology has enabled small entrepreneurs to reach new markets, connect with customers on a global scale, and improve their operations. However, while the opportunities are vast, digital transformation also brings challenges that need to be addressed.
One of the greatest advantages of having a digital presence is the ability to expand the market. Local entrepreneurs can now reach customers who are not physically nearby, and all they need is a few basic tools. Creating a website, establishing a presence on social media, and setting up online sales allow them to reach an audience that extends well beyond their city or region. Interestingly, local businesses can use technology to their advantage, keeping their focus on local customers while also expanding their reach. For example, a restaurant can offer online orders for delivery, or a store can sell products through an e-commerce platform, thus attracting new customers without leaving their local market.
Social media is another tool that allows easier communication with customers. Through platforms like Facebook, Instagram, and TikTok, entrepreneurs can engage directly with consumers, respond to inquiries, solve problems, and even promote their products and services. These networks enable the creation of a community around a brand, and customer engagement can be higher than ever before. Moreover, reviews and feedback from customers have become essential in building trust with new buyers.
However, the digital age is not just an advantage — it also presents challenges. Local businesses that are trying to grab attention on the internet often find themselves competing with large global players who have significantly bigger resources and marketing budgets. Small retailers have to compete with massive online platforms like Amazon or eBay, which can make it difficult to maintain competitiveness. While a digital presence can open doors to new markets, it also means fighting for visibility in an increasingly crowded marketplace.
For many small entrepreneurs, using digital tools requires learning new skills, and that can be challenging. Many businesses lack the resources or expertise to invest in digital technologies, which means they may struggle to keep up with the rapid development of new tools and strategies. As a result, introducing new technology into operations requires investment in training and employee education.
On the other hand, security on the internet has become one of the most important aspects of digital business. As more data travels online, the need to protect that data grows. Small businesses need to ensure the protection of their customers’ personal information, as well as secure their own systems from cyber-attacks. This requires investing in security, which can be expensive, but it is necessary for safe business operations.
While digital transformation opens up many opportunities, it also creates challenges because technology is developing at an incredible speed. What was relevant yesterday might not be today. Algorithms on social media and search engines often change, which can affect marketing strategies that were highly effective just a few months ago. Therefore, entrepreneurs must remain flexible and ready to adapt.
In all of this, the key to success for local businesses is finding a balance between digital tools and personal customer interaction. While it is important to use technology to expand the market and improve operations, personal engagement remains crucial for building long-term customer relationships. Whether it’s providing customer support, creating content, or promoting on social media, the personal touch often makes the difference between success and failure.
Local businesses, therefore, have incredible opportunities in the digital age. With the right combination of technology, education, and personal approach, they can successfully compete on a global scale while maintaining their authenticity and connection to the community. Although challenges exist, they are surmountable with the right strategy, continuous adaptation, and, of course, a passion for what they do.
Example: “Mlinar” – From a local bakery to a national brand with the help of digital technologies
One of the successful examples of a local business in Croatia that has utilized digital transformation is the bakery “Mlinar”, which started as a small family-owned bakery in Zagreb and today is one of the most well-known brands in the food industry in Croatia. Over the years, “Mlinar” has been able to leverage digital technologies to expand its business while maintaining a strong connection with the local community.
Source: https://mlinar.hr/en/about-us
Initially, the bakery began digitalizing its processes by introducing POS (Point of Sale) systems to track sales and manage inventory. This allowed them better control and optimization of their operations. Additionally, they implemented a data analysis system, which helped them understand their customers’ needs more effectively, enabling them to better tailor their product offerings.
However, the real digital revolution for “Mlinar” came through their online presence and e-commerce. By launching their website and establishing a presence on social media platforms like Facebook and Instagram, “Mlinar” was able to extend their reach. Their social media accounts became not only a platform for promoting products but also a place for interaction with customers. They regularly post content featuring new products, special offers, and even recipes or tips for healthy eating, which engages their customers and builds loyalty.
Furthermore, the bakery took advantage of online orders. “Mlinar” enabled its customers to order products for delivery online, further expanding their offering. In addition, they created an online store for selling their bakery products and delicacies, allowing them to reach a broader audience, even beyond Zagreb and other cities where they had physical stores.
Through these digital tools, “Mlinar” successfully maintained a strong connection with local communities, while simultaneously expanding its business nationally and even internationally. Today, it is a recognizable brand, and their successful integration of digital technologies into daily operations has allowed them to stay competitive in the market while maintaining personal connections with customers.
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