Are more thriving small businesses really better for the country?
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  Are more thriving small businesses really better for the country?
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Penelope
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« Reply #25 on: November 13, 2010, 06:29:48 AM »

Thriving small business = good.
Thriving big business = bad.
Thriving government = can hurt;can help

Fixed for you.
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King
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« Reply #26 on: November 13, 2010, 04:55:55 PM »

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.
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Gustaf
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« Reply #27 on: November 13, 2010, 05:41:02 PM »

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)
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King
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« Reply #28 on: November 13, 2010, 06:02:34 PM »

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)

The government can significantly aide in that success without being totalitarian like China.  South Korean chaebol capitalism (see LG, Hyundai, Samsung) are good example of sparking big business.  The government constantly encourages these companies to expand and it led to amazing economic expansion.  If they ever go through hard times, they get bailed out on the promise that they will continue to expand into other industries to become profitable.

Though, this isn't fail proof either.  Daewoo was barely ever a profitable enterprise yet just kept growing and growing despite it before it was impossible for the Koreans to keep them from going under.

Still, it created a ton more long term employment than a small business centric economy probably would have in Korea. And it didn't really restrict entrepreneurship.  If anything, it allowed for more.  An entrepreneur in South Korea just has to create a product/service and business model that can last for a few years then one day LG will come around looking for something to make a subsidiary out of so they can collect another government bailout, boom he's a millionaire and the chaebol makes his idea part of a worldwide company.
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