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Yes small businesses employ a lot of low skill labor and therefore are hit in the short term the hardest with a lack of labor surplus. In the long term, this i
by throwaway13337 10y ago
Yes small businesses employ a lot of low skill labor and therefore are hit in the short term the hardest with a lack of labor surplus.
In the long term, this is necessary for wages to rise. When all restaurants have to compete for a diminishing labor pool, they'll have have to raise their prices to pay people decently.
This is a good thing.
- wslh 10y agoBeyond this specific case, the problem is the unfair competition for human resources between small and big companies. For example, how can you compete with Google for a software engineer? The unfair part is that Google can establish a company in Ireland to avoid taxes while you can barely organize your taxes. I am not saying there are no ways to compete (e.g. give more equity, sell a startup dream) but that the inequalities are not only between the rich and poor gap, they are present in companies too.
- devoply 10y agoIt's not just that. It's that big business can have economies of scale which allows it to push out each unit at a cheaper price point. This then trains consumers to want things at certain price points which then makes it difficult or impossible to compete with larger companies. Further it is much easier for larger business to get investor money and debt financing, so if they want to expand it's much easier for them to do so than for small business. Also for B2B it's again much easier for big business because most of the spending done in the economy is by big business, and they don't care that much about price as consumers and can afford a lot more because they have lots saved up. So there are many factors that favor big business and shut out the little guy who is doing it because he wants more autonomy in his life.