Mittelstand and the Long Tail

Mittelstand and the Long Tail


The Sovereign Economic Model strongly supports the Mittelstand , i.e. the small and medium business (SMB, SME) in the manufacturing sector.


Having a large number of SMEs-SMBs allows to fill in all niches of products, for which there are not millions of customers but a small number of loyal, repeat business customers which may want or need a very specific item.
An example could be specific sportswear for dancing, figure skating, weight-lifting, food products from a special fruit or a special musical instrument or accessory.
A niche might be worth a few tens of millions globally, but occupying that niche might be very profitable for a small-ish company. In such niches there is usually not much competition, as large corporations don't consider such small niches.

Such SMEs-SMBs can fill an enormous number of niches, have decent profit margins and even expand globally to cover customers needs. A high number of such SMEs-SMBs form the Long Tail of an economy, and in a medium to large economy it makes a difference.

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