Your brand identity is what makes you instantly recognizable to your customers. Your audience will associate your brand identity with your product or service, and that identity is what forges the connection between you and your customers, builds customer loyalty, and determines how your customers will perceive your brand.
Possibly. Small businesses can consider a redesign and re-rebranding strategy if their initial brand message isn't getting across to their customers with their current imagery and attempts with marketing (or lack there of). Sometimes a refresh and some minor tweaks is all you need.