4 ms·
Economies of scale destroyed small farms.
by perspective1 7y ago
Economies of scale destroyed small farms.
- pjkundert 7y agoAs with most small businesses ; larger competitors have both economies of scale in business dealings — and, more importantly — economies of scale in compliance with government requirements. For example, the accounting and bookkeeping manpower and expense consumes many full percentage points of a small businesses’ gross revenue, while virtually none of a large businesses’ revenue (fractions of a percent). Of course, large enterprises can - and have - lobbied the government to pass “think of the children” laws against all manner of evil, which they themselves can trivially absorb with their full time legal and accounting staff. The slobs on the family farm - not so much. Until government compliance is priced at a percentage of gross revenue, nothing will change, and small competitors will be extinguished - to the delight of the conglomerates.
- RugnirViking 7y agoEconomies of scale destroyed small buisness owners in general. It's probably a bad thing, competition wise. We're at the point that having two companies in a sector (AMD + intel) is a surprising and lauded achievement in keeping a the marketplace competetive.