Fast-forward Forbes reports dismal growth in small business sector
2013 March – from above link
<<Since big companies largely have recovered, and government employment has grown, at least at the federal level, clearly the real problem lies with the poor performance of smaller, and most critically newer, firms. In the past, young businesses bailed out the economy and spurred innovation. Yet today fewer than 8% of U.S. companies are five years old or younger, down from between 12% and 13% in the early 1980s, another period following a deep recession.>>
Also I am tempted to add that big business in their own motivation for fortune increase are also cause for demise of many small businesses. The coveting democracy and capitalism often times corroborate at the cost of destroying free enterprise, while advancing their own schemes, as we have seen in awesome Movie Tucker – The Man and His Dreams
Elusive Enterprise Darwinism (Nov 2008)
By saddling a dead horse the system cannot be changed. Resurrection is not change and it is best left to those who are above humans. The system pertaining to human will ever remain in the bondage of life and death. And, this system is governed by entropy. By merely doling out money to dying mechanisms newer mechanism do not appear. Only when a non-working system dies by a process of generative transformation newer system emerge. Bailout has the hazard of creating cancerous areas in the system. Studying programmed cell death it is evident that nature has desired that divine ‘death by design’ a willing suicide be a necessary intervention for regulating organism’s life-cycle. As the older mechanism dies it imparts newer properties and characteristics to the emerging mechanism. In the newer mechanisms the older parts that prove not to be useful to the newer function become the vestigial organs and they die. If the older mechanism is forced to perform in the newer paradigm requiring completely newer set of rules, they create stress within the existing structure and eventually the system will implode.
Some of the bail out money could have been directly be invested in the lower denomination who are suffering, while allowing for some of the institutions to undergo its natural decay. It must be borne in mind what bailout means to different sectors. Manufacturing sector and such employs more blue collar workers, while the Service sector employs more white collar workers. Among the two, it is the blue collar who are more in denial and it is these people who work tireless to render the system more economic.
What has to rise is not the dysfunctional economic system, but the existing mass with newer modes of making a living and a just-ful process of compensation. All most all the corporates have turned into a feudalistic system giving rise to machiavellian personalities that is useful to only handful of the masses. The hedge funds etc were to be used as instruments to an investment that would protect one from the future fluctuations. Instead, it was deviously turned into instruments to be used for investing in abstract and complicated risks.
Change is difficult and needs bold moves from the masses. In the past land reform occurred and the feudalistic system was removed by passing land reform act ‘ land for the tiller’. Moving forward, more such systemic development needs to occur especially newer economic system has to be planned that accelerates the micro-finance distributing small and quick money that promotes small businesses. What is needed is a syndication mechanism that promotes development at the grass root level. Furthermore, stringent rules have to be put into place that governs individual contracting. The existing laws are full of holes that exploits the vulnerable individual contractors. In this 21st century any notion of emancipation is a far fetched concept. But certainly there will be CHANGE as it has always happened. It is an entropic property of the system in which dwells both order and disorder. When change happens it will be a ‘step function’ – ferocious, fast and ruthless.