THE SMALL BUSINESS BLOG

Given the state of our economy world-wide, I hope that politicians and governments alike have learned their lessons. If nothing else they should have learned that the ‘Big Firm Capitalism’ has got us into big trouble. We are spending billions to bail these guys out, with money, tax money paid by ordinary people and micro- and sme-businesses.

At the same time these ‘ordinary’ people and small business suffer, as banks and other big business are lining their (pockets-) balance-sheets for the benefit of their shareholders with public money. The reduction in interest rates, was but a red herring, since it has not reached the people it should have reached and never will. The oil price fell below $60 a barrel, that is down from over $140, a reduction of over 55% and the pump prizes have fallen by how much ? 10 to 15%, it is a distasteful, to say the least.

The only way forward to create secure jobs, make local communities viable again, help with our carbon emission targets and most of all create a stable economy, not based on excesses and creed, is to support the creation of small business and foster entrepreneurial thinking even in people or students who will never start a business of their own.

One of the lessons we all learn in business school is, that it is better to have many small customers than a few big customers, it makes for less volatility in the business when one or two customers leave or do not pay. Maybe government economists needs to learn this lesson too.

On the positive side there are signs that government is trying to get better at helping small business, with initiatives that are intended to help, but don’t always hit the mark, because they just don’t understand what micro and small business is and which problems small business face.

It is difficult to do that if you have an army of people who help you to run your office everyday, send, type your letters and parcels and get things done. In other words a luxury small and micro business don’t have. Add to that red-tape, funding problems at the best of times, stigma if a business fails and many more and you can see why we have a long way to go.

One thing is for sure, only the entrepreneurs will get us out of this mess, so let’s help them for once and applaud their efforts. –ST.

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