Episode 88: In their Own Words – ‘1000 Small Businesses’ on Challenges to Growth
Date of the podcast: March 9, 2018
Date listened to the podcast: June 2, 2018
Small businesses represent more than 99 per cent of all business enterprises in the United States. The small business sector provides employment opportunities for about 60 million Americans, which about half of the total workforce in the country. Small businesses contribute to the local and national economy in many ways. Some of these contributions include innovation and stimulating economic growth through employing people from different and diverse pools of talent who the large corporations don’t absorb. Therefore, small business sector forms the building blocks for the big business enterprises. This podcast also highlights on the challenges encountered by the small business owners such as hiring.
According to the podcast, small businesses face a host of challenges in their efforts to remain profitable. They are not able to compete successfully due to impediments that the big corporations do not experience since they have access to more resources than the small businesses. There has been bigger economic growth in the corporate side of businesses while small businesses continue to experience slow growth. The small enterprises have a tougher time getting credit, unlike the big corporation that have access to an unlimited amount of credit that can be utilized in expansionary projects. In addition, small businesses experience impediments in navigating the regulatory environments that are mostly designed in favor of the big businesses.
Complexity is a major challenge faced by all small business owners. They have to fulfill tasks that would need to be performed by CFOs, compliance officers, finance analysts, CMOs, and so forth since it is impossible to have all these resources under one roof. They therefore have an overwhelming burden on their time and are limited to the number of things they can do at a given time. The major barriers to growth experienced by small business owners include the difficulty of attracting new employees, managing hiring. Further, unlike big corporations, small businesses lack central repositories that inform on different factors and policies affecting them. Moreover, there are little or no established mechanisms to help the small businesses in bidding and carrying out contracts.
In conclusion, it is of great importance that small businesses are included in the conventional economic structures. Small businesses don’t always stay small. As such, they should be given maximum attention and support to help in their growth. The growth of small business enterprises can help in bolstering the economies in the long-term. Small businesses continue to significantly contribute to vitality and growth in different areas of economic developments in the country.
Strongin, S., Hindlian, A., & Siewert, J. “Episode 88: In their Own Words – ‘1000 Small Businesses’ on Challenges to Growth”. Exchanges at the Goldman Sachs. Retrieved from http://www.goldmansachs.com/our-thinking/podcasts/episodes/03-23-2018-hindlian- strongin.html [Accessed June 2, 2018].