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"Small" businesses win when transaction costs between corps get smaller, when supply chains get more efficient, when more available capital is fills out choices
by ap22213 12y ago
"Small" businesses win when transaction costs between corps get smaller, when supply chains get more efficient, when more available capital is fills out choices in the supply chain, and when more corps can focus more on competitive advantage. A "small" business (with some exception to service-based businesses) is a just a "head" of a long, long supply chain. And, it only looks small if you look at the head.
I have been hoping for years that this type of economy would emerge. This type of transformation will allow for more small entrepreneurs to survive and thrive. Large corporations tend to focus on optimization, and that optimization narrows the types of products that they can produce. With small businesses, customers can get more tailored products, more individualization, more personalized service.
Although it's easier than ever to start a small business, I don't think we're quite there yet. Large corporations still have economies of scale to their advantage. But, I'm hopeful that we're trending in the right direction. I'm hopeful that soon, small entrepreneurs with a good business ideas can make reasonable profits staying small and fitting in somewhere in that massive, global supply chain. In that type of world, we all benefit.