Are more thriving small businesses really better for the country?

[Gustaf]

You can't really encourage the creation of big business.

[Gustaf]

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.

[Gustaf]

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.

Of course, but, as you say, that isn't "idle."

The only capital which is idle is really cash in a mattress and that seems slightly more likely to be true of revenue generated by small business than by big business.

[Gustaf]

You can't really encourage the creation of big business.

I see venture capitalism as encouraging the formation of big businesses all the time.  There's a lot of good ideas that require too much to start off the small.

Google, mentioned early as a small business that became big, started off with a $100,000 angel investment.  The Home Depot was also mentioned and, while it was planned and started by a small group of entrepreneurs, it was financed largely by an investment bank.

But venture capital is fairly common when it comes to starting companies in general, no?

My point was rather that whether a company becomes big or not depends mostly on how successful they are, not on government policies.

(Unless you do a China and simply outlaw a bunch of smaller companies)