Saturday, November 7, 2015

Small Business Keeps Large Business Adapting

Small business is a major contributor to the U.S. economic system. It doesn't get the same focus as large businesses because of its inability to funnel large amounts of money into the political machinery. It does, however, constitute the future of American society and should be a central part of government decision making.

Consider that all major businesses started from someone's entrepreneurial activity. That activity led to a new business venture that if successful grew and accumulated enough resources to create the large corporations of today. Successful business models moved forward but poor models collapse by lack of competitive ability.

The process of growth and regeneration starts and ends with small business. New businesses rise, put pressure on large businesses, and then are bought out or drowned out by adapting corporations. Without this constant process of innovation the economic system would slow and eventual lose its place among nations.

Small business may not have all the money as larger corporations but is still a fundamental part of keeping those large businesses alive. Without their pressure and adaptations large businesses would not succeed. Labor market improvement, taxes, and infrastructure would continue to be supported by less dollars.

Policies should always be focused on the long-term goals of the nation. This focus should be to encourage entrepreneurial activity and ensures innovation and growth potential is at its maximum. Decisions should not be solely in the form of who gives the greatest campaign contribution but to that which ensures both small and large businesses succeed together.

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