Microservices improve software scalability by enabling applications to be built as a collection of independent, modular services. Each microservice can be developed, deployed, and scaled individually, allowing teams to work concurrently and focus on specific functionalities. This architecture supports load balancing as services can be scaled up or down based on demand, optimizing resource utilization. Moreover, microservices enhance resilience, as a failure in one service does not affect the entire application. This flexibility allows businesses to adapt to changing market conditions and improves overall responsiveness to user needs.