Modern prospects of small business
The prospects of small business are connected with the understanding of the fact that it occupies one of two niches in the economy. The first of these is the start of new business areas. The second niche is an aid to the average, but more often big business. In our conditions, about 10-20% of small businesses work in the first niche. In the second niche – 80-90% of small businesses.
In other words, the vast majority of small businesses work as assistants to big business and, accordingly, depend on it. For example, service stations are assistants to car manufacturers and spare parts for them. The sphere of trade is the assistants to the producers of goods. Travel agencies are assistants to tour operators.
The prospects of small business from the first niche depend on the development of the economy as a whole, as well as on the development of scientific thought and technology. But the whole secret is that big business, economics, science and technology depend on ideas. This means that, of course, the prospects for small businesses are connected with the prospects for the dissemination of certain ideas.
What small business prospects depend on
It turns out that small business representatives need to carefully monitor which ideas are popular and which are not. For example, I made a certain communication salon for the sale of phones under the Nokia trademark. However, Nokia’s management took and chose an idea that is not popular with customers to build a market.
As a result, phones that are the embodiment of this idea, cease to be sold. The salon itself can do everything right, but the manufacturer does not. In the end, if he does not reorient himself to help another big business, then go bankrupt. In order to properly reorient and not to burn out, it is necessary to explore the ideas that are embedded in consumers.
Next, you need to make a rating of these ideas, and then it will become clear what to bet on. After that, it remains to figure out which of the representatives of big business is engaged in the development of this idea and switch to the trade in its products. To maximize profits, it is advisable to choose the company whose products enjoy the highest demand.
Small business prospects in the 21st century
Of course, it is hard to realize that small business is not independent and that the prospects for small business depend on big business. But there’s nothing to be done, this is how the economy works. In principle, there is nothing wrong with that, you just have to hold your nose to the wind, study consumers and identify the most promising ideas and deal with them.
For the purpose of consoling small businesses, it can be noted that in the event of problems in the market, the losses of a small business are small, in contrast to a large business, where they are simply huge and sometimes fatal. It can be noted that the prospects of small businesses are often better than those of large businesses, because small businesses are very adaptive.
Problems started with one big business – you work for another. The main thing is to understand the role of small business, and indeed the essence of business. The essence of business is that business is the process of materializing ideas. At first, an idea is created, then it is introduced into consumers, as a result of which they need relevant goods or services.
What are the prospects for small businesses?
Without an idea, business is impossible. If you have an idea, then you have a business, if there is no idea, then there is no business. That is the essence of our world. If there is no idea, then effective ways of business development are not available, which means that the opportunity to build a big business is also not available. In general, of course, it should be noted that the real business is the creation and promotion of your idea.
Small business can introduce new ideas and then become big business or integrate with big business, or engage in the promotion of someone else’s idea – which is help to big business. There is no need for a small business. Each of the ways has its advantages and disadvantages. Accordingly, everyone decides for himself which path to choose.
When you promote someone else’s idea, it is already more hired work than a business. A small business that is mainly engaged in promoting someone else’s idea is a mercenary from the owner of this idea. This feature of a small business is related to the fact that it has few opportunities to promote its idea and to promote it you need a lot of resources.
Real prospects for small business
Like any other mercenary, a small business is usually content with a small income. In order to earn a lot, a small business must become big for what it needs to create and develop an idea. The more people the idea is implemented, the more consumers will be created and the better the prospects for small businesses are viewed.
For example, there is a Samsung company. She generated an idea that can be voiced as “new technology at an affordable price.” She has implemented this idea in a certain circle of buyers, let’s say it’s 100 million consumers worldwide and is developing it. In other words, she created her own market, where she is a monopolist.
There is another company – Sony. She generated an idea that can be voiced as “new technologies at a high price” and also develops it. The number of people in whom this idea is implemented, let’s say also 100 million people. In other words, SONY also created its own market, where it is a MONOPOLIST, where it has no competitors.
The financial outlook for small businesses
If the said companies did not have their own markets in which they are monopolists, they would not receive profits and would work on the verge of zero profitability. The presence of its market and, as a result, the monopoly position on it, gives these companies the opportunity to set prices above the level of profitability and make profits.
In turn, these companies have dealers. They develop other people’s ideas, respectively, the ideas that Samsung and Sony are promoting, and not their own, with all the ensuing consequences. The owner of the idea underlying it receives the most from the market, because he invests the most in his development and the idea “thanks” more than anyone.
She will certainly “thank” anyone who helps her develop, but she doesn’t care whether it is Edward, or it will be David, or it will be Sergey, or it will be Ahmed, or another “small businessman”. The idea will thank everyone, but they all get very little, the less, the more “small businessmen” helps to develop the idea in which they are engaged.
Prospects for the development of small business
Unlike mercenaries, who are hired by the owner of the idea for their business, the “small businessman” does not receive wages from him, but usually lives with a percentage between the retail and wholesale prices. The better the idea helped develop, the more earned. But here we must understand that earnings are 100% proportional to the number of consumers in this market.
If the number of consumers is 1000, and the difference between the wholesale and retail prices is $ 100, then it is clear that the earnings of the entire market will not exceed $ 100,000. If there is one small business on the market, then the whole amount of gratitude will go to him. If 10 businessmen, they will have to divide the gratitude by 10 and they will receive a maximum of $ 10,000.