You can read part one here.
As the world’s population increases so does the demand for goods and services. This puts a strain on small businesses to become more economically efficient in order to increase productivity and create a convenience that meets customer demands. If there are not enough entrepreneurs collaborating and creating businesses to meet these demands then the cash-flow begins to over-flow within the small businesses that are trying to keep up. With no competition around, these small businesses feel the pressure to expand. This is one reason why big business and global corporations develop.
As the world’s population increases so does the demand for goods and services. This puts a strain on small businesses to become more economically efficient in order to increase productivity and create a convenience that meets customer demands. If there are not enough entrepreneurs collaborating and creating businesses to meet these demands then the cash-flow begins to over-flow within the small businesses that are trying to keep up. With no competition around, these small businesses feel the pressure to expand. This is one reason why big business and global corporations develop.
He Who Has the Gold…
Over the next several years those small businesses have expanded their reach by adding more locations to do business. Their productivity has become so efficient that they are able to meet the daily customer demands of the entire town, and without sign of slowing down. They can offer the lowest prices around because they now have contracts with foreign manufacturers to produce/import goods. The ones who started offering additional services for their customer saw an explosion in popularity, as the customers became comfortable with the level of convenience offered by their company.
The problem I have with the convergence of global corporations and convenience is the direction of cash-flow and how the influence of an entire town’s economy is manipulated among only a handful of entrepreneurs. Not only that, but when a town only has a handful of entrepreneurs/companies deciding what is going to be served on the plate, hung on the hangers, displayed in the stores windows, parked on the showroom floor, stored in the freezer, or on the shelves, this seems to influence how a large portion of that town’s citizens dress, eat, shop, and live! You feel like your options are limited. Now back to that direction of cash-flow I was talking about. Let’s say that John, Mike, and Cathy’s town is an island by itself with little outside influence on their economy aside from the occasional group of tourists that land in for a visit.
The Small Business Economy
Over the next several years those small businesses have expanded their reach by adding more locations to do business. Their productivity has become so efficient that they are able to meet the daily customer demands of the entire town, and without sign of slowing down. They can offer the lowest prices around because they now have contracts with foreign manufacturers to produce/import goods. The ones who started offering additional services for their customer saw an explosion in popularity, as the customers became comfortable with the level of convenience offered by their company.
The problem I have with the convergence of global corporations and convenience is the direction of cash-flow and how the influence of an entire town’s economy is manipulated among only a handful of entrepreneurs. Not only that, but when a town only has a handful of entrepreneurs/companies deciding what is going to be served on the plate, hung on the hangers, displayed in the stores windows, parked on the showroom floor, stored in the freezer, or on the shelves, this seems to influence how a large portion of that town’s citizens dress, eat, shop, and live! You feel like your options are limited. Now back to that direction of cash-flow I was talking about. Let’s say that John, Mike, and Cathy’s town is an island by itself with little outside influence on their economy aside from the occasional group of tourists that land in for a visit.
The Small Business Economy
In this small business economy example, I illustrate how the cash flow within the community circulates around the community. The growth is slow and steady but stable, as population and tourism increase demand and the amount of wealth exchanging hands daily is consistent. This economy creates a natural ripple effect that expands based on the frequency of growth within the community. The direction of business & cash-flow is based on the decisions of many different entrepreneurs. A strong small business economy is built through business to business relationships between networks of entrepreneurs who work together to meet their consumer demands. Each successful generation breeds new hope and prosperity as children learn by example from their parents who own and play an active role in their community through commerce. This is what strengthens growth and adds value to the ripple effect, as the next generation wisely creates new business/employment opportunities for themselves and others.
Global Business Economy
Global Business Economy
In this example I illustrate the detrimental effect big business has had on job growth and transfer of wealth within the same island. Economic growth has become stagnant, even as population and consumer demand increases. Instead of people opening up businesses, there are more folks who would rather work for the large corporations on the island than have to compete against the tremendous power of convenience, resources, and competitive prices offered through their imported goods/services. Unfortunately there are only a limited amount jobs offered by the corporations, so there is a spike in unemployment as more and more small business opportunities are squashed. Many people have moved off the island in search of land where opportunity is still a realistically viable concept for their particular skill set. This type of economy creates a vacuum effect where the largest portion of cash-flow from consumers of all different demographics from the population is funneled into the corporation offering them the greatest convenience at the lowest price. The reason for this funnel effect, is not only convenience and low cost, but because the population that the corporations employ also double as their customers. This helps the corporations to quickly recoup most of the outbound cash-flow used to pay their employees. When their employees return as customers, they are essentially working for the corporation at a discounted rate of pay by returning cash from their paychecks for goods/services purchased. The transfer of this wealth, after it is funneled, is based on the decisions of only a fraction of individuals compared to the small business economy, which means the livelihoods of the island population is mostly out of their control.
Who’s Responsible for this?
It’s so easy for people to collectively point the finger, and picket outside big corporations and say, “This is all your fault! I detest you greedy pigs!” when times are tough, but what were they doing back when that big business was just a small business, struggling to meet the demands of the same cats now calling the kettle black? Certainly not involved with producing anything to ease the pressure of or compete with said business. So is the community guilty of playing Dr.Frankenstein? Perhaps there is more to the global corporations than meets the eye. What if I told you that you are able to go from rags to riches much faster by leveraging big corporations than if you were to compete against them? Want to know how?
You may discover your third eye is blind, as I share some insightful signs of both, prosperous and toxic economies within a community. Caution, you may suddenly feel the prophetic effect of these insights as you become more aware of your surroundings, in the stunning conclusion of this article!
Who’s Responsible for this?
It’s so easy for people to collectively point the finger, and picket outside big corporations and say, “This is all your fault! I detest you greedy pigs!” when times are tough, but what were they doing back when that big business was just a small business, struggling to meet the demands of the same cats now calling the kettle black? Certainly not involved with producing anything to ease the pressure of or compete with said business. So is the community guilty of playing Dr.Frankenstein? Perhaps there is more to the global corporations than meets the eye. What if I told you that you are able to go from rags to riches much faster by leveraging big corporations than if you were to compete against them? Want to know how?
You may discover your third eye is blind, as I share some insightful signs of both, prosperous and toxic economies within a community. Caution, you may suddenly feel the prophetic effect of these insights as you become more aware of your surroundings, in the stunning conclusion of this article!
