“Small business if a backbone of our economy” – might be one of the most popular phrases that politicians say. It gets them voters quite easily, because since the very young age we are taught how much importance does the small business have in our economy. A significant part of the population is small business owners. Stores, shops, workshops, etc., pass from a generation to generation for hundreds of years. This is how this economy works; this is how everything functions. However, sometimes small business turn into bigger ones. These bigger ones merge with others to create multimillionaire corporations that begin to dominate the market. What problems does it create?
At first glance, everything seems perfectly fair. If a business is successful enough to grow it means that it has every right to make more profit. However, the real problem lies underneath. The real issue is the fact that a small business has little to no means to compete with a corporation. The Walmart situation demonstrates this perfectly – it grew so big that is simply pushes out all the little stores that have existed in the area for years. Every new Walmart that opens inevitably results in declining number of small businesses. However, it doesn’t do anything illegal – it is simply using its size in order to provide lower prices.
Some people argue that this is the way of progress – small business simply have no place in a globalized world. It might be true, but as of right now, the major part of our population is employed in some sort of a small business. Closing all of them down would mean the crises of an unimaginable proportion.
People also agree that local business simply have certain charm to them. Shopping in a huge supermarket like Walmart is not nearly as exciting as going to a farmer’s market. This bring us to the main question – can the small store survive? Well, the latest tendencies show that probably yes. Why? Because shopping in local stores have become a trend. More and more people are choosing to pay a little bit more in order to support their neighborhood. Some people are refusing to go to big stores at all. It seems like at least for now, small business is safe. But what about the future?
Economists cannot agree on this issue. Some say that simply because the cost of logistics is going down, big business will have less and less expenses and will pressure small business every day. Others suggest that because more and more people choose to shop locally, the future looks bright for local stores.
So, this looks like the future of small business in this county. Nobody can really predict its future, however one thing remains the same – its existence is absolutely crucial to the normal functioning of our economy.
Go through this Wal-Mart versus Mom and Pop: How can a Small Store Survive synthesis essay sample to see what is the future of small business in this country and how will it develop in years to come.