Are more thriving small businesses really better for the country?

[phk]

More important than small business in on its own, a society with entrepreneurial spirit at least spurs creativity.

[phk]

More important than small business in on its own, a society with entrepreneurial spirit at least spurs creativity.

     I more or less agree with this. If we encourage people to start small businesses, most of the businesses will be useless, but some will make more important contributions to the economy. As patrick1 pointed out, every business is a small business when it starts out; even something like Google or Apple.

Careful now; your starting to sound like a nanny statist.

To further elaborate. There are small businesses who are not interested in increasing economies of scope. I once interned for a self-employed sole proprietor insurance underwriter who simply had 2 interns. One to cold call and one to do clerical/admin work. These types aren't exactly the type that can grow to provide and create jobs.

Its the types that require angel and VC investors.

[phk]

More important than small business in on its own, a society with entrepreneurial spirit at least spurs creativity.

     I more or less agree with this. If we encourage people to start small businesses, most of the businesses will be useless, but some will make more important contributions to the economy. As patrick1 pointed out, every business is a small business when it starts out; even something like Google or Apple.

Not true - some businesses started out big.  A good example would be the Home Depot - the whole innovation behind its business model was that it would be big.

Not counting retail or mining, most tech businesses started out in garages, bedrooms. living rooms, attics, dorm rooms, etc.

[phk]

Ideally yes as small business are less likely to produce the idle fortunes that large businesses create. However, when a politician speaks of aiding small business, you can bet the farm he talking about giving more money to the super rich.

Actually, the probability of large businesses producing idle capital is virtually zero. For small businesses the probability is probably a little bit higher, but in general idle capital is extremely rare in a modern society.

He likely is referring to having a high % of cash to assets.

But even than, the cash is lying around in a bank and not in briefcases, ready to be loaned.