Challenges in marketing for small and medium-sized businesses on a national scale

Small business is an integral part of stimulating economic growth in the country. It not only creates new jobs but also plays a significant role in the economic activity of the United States, accounting for up to 44% of the total volume [Source: U.S. Government Accountability Office]. Moreover, small enterprises contribute to the strengthening of the local economy as people, by supporting small entrepreneurs through small purchases, contribute to the economic well-being of their region.

However, despite its importance, small businesses face serious challenges.

One of the global problems is the high level of failed enterprises in their first years of operation. According to statistics, one in five enterprises fails in the first year, and half of them face failure within the first five years.

To understand this situation more comprehensively, it should be noted that 20% of enterprises do not achieve success in the first year, 30% in the second year, and 50% by the fifth year [Source: Fundera]. This vividly demonstrates the critical importance of the first five years for the sustainability of new ventures.

The most common reason for failure is the lack of market demand. In total, 42% of enterprises that did not survive the first five years experienced failure precisely due to this reason [Source: CBInsights].

To ensure success and sustainability, entrepreneurs need to thoroughly study the market and adapt effectively to changing conditions to fully meet the needs of customers.

One of the keyways to reduce the risk of failure is to develop an effective marketing strategy. Properly positioning the business, products, and services in front of potential customers through efficient marketing contributes to a higher return on investments. However, it is essential to remember that a common reason for small business failure is a lack of capital, which accounts for 38% [source: CBInsights].

As is known, starting and running a small business requires significant financial investments. Therefore, accumulating sufficient capital to cover operational expenses in the first few years is a crucial moment for business owners. This enables the business to stabilize and start generating profits instead of operating at a loss. Striving for an effective marketing strategy and proper financial planning in the early years can significantly increase the chances of success and long-term sustainability for small enterprises.

In connection with the aforementioned, I would like to draw your attention to a model for improving marketing effectiveness (U.S. Patent Pending, # 63530979), which may be particularly interesting for small businesses. This model, developed by Mr. Peregudin, impresses with its adaptability and ease of implementation.

Based on the segmentation method, this innovative model of marketing effectiveness provides small businesses with a powerful tool for maintaining and increasing the loyalty of existing customer base, as well as attracting new customers. Additionally, the model invented by Mr. Peregudin also helps to more accurately assess the probability of acquiring specific products or services, allowing for maximum optimization of the marketing budget, and increasing ROI.

How does it work?

For the successful development of a marketing strategy, it is necessary to consider two main objectives: increasing brand loyalty among existing customers and attracting a new audience. Here, the formula for assessing the probability of acquiring a product or service comes to the rescue, which allows predicting which products will be in high demand among the target audience. This approach enables small businesses to optimize their product lineup and tailor offers to meet customer needs, thereby increasing the likelihood of successful sales.

Another key element of this model is the formula for choosing the most effective communication channel with potential and existing customers. Thanks to this formula, entrepreneurs can accurately determine which marketing channel can best deliver the advertising message to their audience. This helps reduce advertising expenses, increase the loyalty of the target audience, and use the budget most effectively to achieve marketing goals.

Segmentation of the existing customer base is also a powerful tool for small businesses with a large number of subscribers. By analyzing the purchasing activity and preferences of customers in different segments, businesses can create personalized advertising messages for each group (recommended marketing activities for working with each customer group are also presented in detail). This individualized approach not only increases the average monthly revenue but also contributes to the return of customers who previously left.

In conclusion, the application of this model allows small businesses to optimize their marketing strategies, increase the effectiveness of advertising campaigns, and boost their profits. The adaptability and ease of use make this model accessible to various enterprises, contributing to their successful development and growth in the modern competitive environment.


In conclusion, it can be emphasized that small business plays a crucial role in stimulating the country’s economic growth. It is an integral part of economic activity, constituting a significant share of the overall economy of the United States. However, small businesses face a number of serious challenges, including a high level of unsuccessful enterprises in their early years of operation.

In the context of addressing these issues, the presented model for increasing marketing efficiency, developed by Mr. Peregudin, deserves special attention.

With the help of this model, entrepreneurs gain the ability to more accurately assess the probability of acquiring a specific product or service and to choose the most effective communication channel with customers. Customer segmentation allows providing personalized advertising messages for each group of clients, which contributes to increased loyalty and customer retention.

Thus, the application of this model, along with proper financial planning in the early years of operation, can significantly increase the chances of success and long-term sustainability of small businesses. The implementation of innovative and adaptive approaches, such as the proposed model, promotes the development of small enterprises and strengthens the overall economic stability of the country.