“It was the best of times, it was the worst of times”. It was a time when small start ups / small businesses were incentivised, encouraged and nurtured. A few of these businesses rapidly grew into the behemoths known as Apple, Google and Microsoft.
But that was once upon a time. Now small businesses are scorned, marginalised and devoured. It’s as if they are just fodder for multinationals.
No wonder the global economy is suffering. For growth large companies make use of technology, mechanisation, and cheap foreign labour. They diminish their labour forces in Europe and America where there are limits to how little you can pay for an hours labour.
Small businesses can better compete due to the demand for new energy, eco and environmental products. Changes in society have levelled the playing field a little but the investments needed to help small businesses get a foothold, is being denied them by governments, banks and financial institutions.
Banks are only part of the problem. They are arrogant in their belief – that they can grow more profits through gambling and the stock market than by investing in small businesses.
Governments have to do more. They have to develop policies and invent new ways to help the resurgence of small businesses. If they don’t you can say goodbye to that third car and mortgage you find so attractive.
In a speech at the 2010 Confederation of British Industry conference, Labour leader Ed Miliband has admitted his party has failed to understand small businesses.
Mr Griggs said SMEs (Small and medium-sized businesses) continued to face two problems in particular. More than ever before were finding it difficult to access credit, which suggests banks are doing less, rather than more, to help the business sector. In addition, demand for goods from overseas has fallen much more sharply than domestic demand in recent months.