In an article on Entrepreneur.com in March, titled, “Innovation: Small Businesses Live It, Big Businesses Buy It,” Mike Templeman, CEO of Foxtail Marketing, summed up the small-firms-help-large-firms-to-innovate trend in the following way:
“Small businesses and startups are the breeding grounds for innovation. Unhindered by the same tethers that hold down big businesses, these companies are able to innovate in ways that their larger counterparts cannot. In fact, innovation is a necessity for small [businesses]. They don’t have the financial means to accomplish many of their goals, and thus they have to find creative means to an end.”
“…Small business owners and serial entrepreneurs who understand the relationship between big business and innovation are able to exploit it to achieve some awesome financial success. Understanding pain points of larger businesses, creating an innovative solution and then developing that solution into a scalable product will undoubtedly attract the attention of larger companies. This can result in company buyouts, leases, licensing agreements, or partnerships that provide financial windfalls for the small business.”
“….Big corporations are constantly on the hunt for smaller startups that can fill a void. They not only look for innovative solutions but also [for] companies that already have a strong presence and have scaled [up].”
Templeman advises and challenges small business owners to consistently consider such opportunities to help larger companies innovate.