The determinants of MSME competitiveness are based on the capacity of firms to compete, grow, and be profitable.185 Those benefits are derived from, among other things, superior product (in terms of design, quality etc.), production efficiency, financial position, marketing strategy, organizational effectiveness and the company’s ability to stimulate and respond to demand.186
A competitive business should have the ability to gain market share and thus maintain an advantage over rival competitors. Research has found that in a period of significant economic turbulence, the following two factors played an essential role in shaping the competitive market position of an enterprise: company image (product brand) and lower product price.187 The market position of small businesses was also shaped by focusing on a specific group of customers. Small-sized enterprises benefit from their high level of flexibility, which makes them able to adapt to shifting market demand quickly.
185 Martin R. L., 2004. A Study on the Factors of Regional Competitiveness, University of Cambridge
186 Shevchenko, Vasiliy V. 1; Kokuytseva, Tatiana V. & Ovchinnikova, Oksana P. (2019), Competitiveness of the Enterprises of the Eurasian Economic Union: Assessment Methodology. 28 October.
187 Harvard Business Review, Strategies for Staying Cost Competitive by Arthur A. Thompson, Jr., From the Magazine (January 1984).
