Jun 27, 2013

Small Businesses are Losing. Why? My thoughts...

     It would be preferable for people to start up a small business than depend on a larger business to hire them. Instead, all of our preparations in life focus on getting hired by someone else. Why enforce the idea of smaller businesses?  It would create competition within that niche of the economy which will typically reduce prices, increase innovation and would reduce the chances of a monopolies and/or cartels (even though they sometimes exist). Also, businesses that produce goods/services locally have a lower overhead cost when it comes to transporting their goods/services.
         More than likely, the competition created would allow for better customer service to increase their customer base. Mostly. This would explain the differences between "mom and pop” shops versus large businesses/corporations. They both intend and are in need of your money to increase their profits, however. How would they survive if you didn’t buy their goods/services?
     All of us need a profit. A lot of people, when they think of profits, instantly think of rich people on boats, hedgefund managers smoking cigars, or robber barons. What these people do not see is that your profits also include paying for your operating costs like your supplies, workers, their healthcare and rainy-day funds.
Otherwise, why bother working or doing anything? So, why are smaller businesses so hard to start? Why do these excessively large businesses still exist, “pushing” the smaller ones out of business?
Why do our most influential institutions (school/college/media) hardly impose the values of entrepreneurship?
I understand that some of you have instantly thought of the topic of business ethics versus gaining a profit, but I think all of these questions are equally important.


Thoughts?

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