Business Strategies and Startup Businesses in Some Selected Small and Medium-Scale Enterprises in Ugbowo

This study examines the influence of business strategies on the performance of startup businesses in selected small and medium-sized enterprises (SMEs) in Ugbowo, Benin City, Edo State. Specifically, it focuses on four core strategies: cost leadership, product differentiation, digital marketing, and customer relationship management (CRM). The research was guided by four key questions that sought to examine how these strategies impact business growth, market share, customer acquisition, and retention. A descriptive survey research design was employed, and data were collected through structured questionnaires distributed to 147 employees across four registered SMEs in Ugbowo. The results highlight that cost leadership strategies significantly enhance profitability and competitive advantage, enabling startups to set competitive pricing and attract a broader customer base. Product differentiation strategies, while fostering customer retention, lead to increased competition in market share. Digital marketing, particularly through social media and search engine optimization (SEO), proves essential for customer acquisition. Lastly, CRM strategies are found to positively impact customer retention rates, aiding startups in maintaining long-term customer relationships. The findings reveal the critical role of these business strategies in improving startup performance and suggest that SMEs in Ugbowo prioritize their implementation to enhance sustainability and growth. Recommendations are provided for startups to adopt cost-effective measures, differentiate their products, leverage digital marketing tools, and utilize CRM systems to maximize their potential for success.