Weblog:   Open Source & The Fallacy Of Composition
Subject:   but small business are MOST business
Date:   2006-02-12 05:28:27
From:   teejay
You've fallen for the old journalists and stockbrokers belief that Big Business is the only business.

Most of the world's (regardless of whether developed, developing or third world) businesses are small. This is a good thing - small businesses work harder, self employed people work more hours and generate a great deal more for the economy than an equivilent director of a top corporation.

Having more small businesses may not be so nice for finance hacks and the industries that take a cut on every corporate merger, aquisition, pr stunt, share deals, investment, etc, but it's better for the economy, suppliers and customers. Suppliers get better prices, customers get better value and service, and the economy is less vulnerable to the blundering giants and dinosaurs that rule the stock markets.

Also having cash rich businesses means that they are capable of investing more in research and development - compare how much innovation you see from huge companies who spend less on R&D than on the legal paperwork involved in fiddling with a handful of directors share options - like Microsoft, Cisco, etc. Also as these companies aren't in debt like many 'blue chip' companies the economy is less fragile with less chance of 000s of people being laid off.

So less debt, more innovation, more competition, less mass layoffs, better products, more value, more economic growth and higher productivity. Man, that would *really* suck if it continued.