Question: How can small businesses work together instead of competing against one another to create an efficient and reliable economy?
Currently I am at an information overload, I have more sources than necessary and more thoughts than I can handle. So here's a rough outline and a small beginning. suggestions WELCOMED.
A brief outline of questions to answer...
1. How many small businesses are in the United States today?
- How many in St.George ?
- What kind of businesses are they?
2. What are the odds?
- How long will they last?
3. Why do businesses compete?
- How do they compete other than out pricing.
4. What kind of programs currently exist to help small businesses
- What are the criteria of such programs?
- Are they costly?
- Are the benefits worth participation?
5. What does the future for these programs and the businesses they are involved with look like?
Small businesses are often underestimated when talking of the economy, but the fact is that small businesses actually have a huge impact on our economy In the world of business there are many categories of businesses, non profit organizations, green businesses, start up and high growth businesses, internet businesses, and home based businesses just to list a small few. With the many categories of businesses, all individual and unique in there own way why must they compete against one another creating higher pricing for consumers and sometimes their very own demise. Don't get me wrong, competition is a strong way for a business to succeed however, what I am proposing is this, why cant small businesses work together with other types of small businesses to create an alliance and an army if you would of referrals?
Keep in mind that a small business is defined as any business that has less than 500 employees as we take a look at the statistics, I'm more interested in small business competition effects in small businesses like a mom and pop shop. The United States has approximately 23 million small businesses accounting for 54% of U.S sales and has increased 49% since 1982. Of those 23 million small businesses Utah contributes 241,692 small businesses to that number (2008). The majority of Utah's small business owners are those that specialize in construction, real estate, or professional/scientific/ technological services.
There are several government funded programs for small businesses, most of which pertain to helping with financing and other financial burdens that come with owning a small business mainly they are in place to help new business owners in the start up process but who helps them grow once they are on their feet?. 10,000 businesses is a program funded out of Cleveland where a team of professionals at a community college are teaming together to help continued education of small business owners teaching them and mentoring them as they go. There are also several "incubation" programs I came across (unfortunately not located in the U.S) where a firm essentially nurtures a business until it is either successful or a bust. This incubation program sets up business owners directly in their building space if necessary and helps with decision making and marketing. There are sadly very few programs dedicated to making connections among businesses and their owners.
Business outreach programs are small programs that are generally funded by the city, these programs are in place to help not only guide businesses through the start up process but to help them connect with other businesses involved in the program to keep the business relations within the community rather than outsourcing for products or services. Keeping relations within the community helps balance and stabilize the economy within the community between business owners.
Like I said in the beginning, competition is a major part of any business but as a small business owner it is important to remember that your connections within the community help you build strong community referrals and relations.
Sources:
Business alliance program: creating business and community partnerships. Bureau of justice assistance. Nancy E. Gist. https://www.ncjrs.gov
U.S small business administration. http://www.sba.gov/#
Small businesses= big impact. Rebecca O Bagley. Forbes Magazine. 2013. http://www.forbes.com/sites/rebeccabagley/2012/05/15/small-businesses- big-impact/
Greenbaum, Kurt. "BUSINESS OUTREACH PROGRAM A SUCCESS." Sun Sentinel: 18. Apr 03 1987. ProQuest. Web. 3 Dec. 2013 .
No comments:
Post a Comment