Impact of informal commerce and large chains on small business competitiveness

Abstract

This study aimed to analyze how the activity of informal commerce and the presence of large retail chains influenced the competitiveness of small commercial enterprises in Santo Domingo during the year 2024. A quantitative approach was adopted, employing a non-experimental, cross-sectional design based on surveys administered to 86 representatives of legally registered small businesses in the city. The results revealed that product quality and competitive pricing were the most highly valued factors by entrepreneurs in sustaining their competitiveness. Frequent price updates were associated with greater sales growth. In relation to the commercial environment, both informal commerce and large retail chains were perceived as competitive threats, though with nuances depending on consumer profiles. Chi-square testing confirmed that consumer preference motives varied significantly according to the type of commerce: informal commerce was favored for its low prices and proximity, while large retail chains were preferred for their promotions and perceived quality assurance. It was concluded that small enterprises must strengthen their differentiation strategies while maintaining focus on key factors such as pricing and location, in order to remain competitive in a dual and dynamic commercial landscape.