In recent times, there has been a trend towards globalisation, large multi-national corporates, and big business snapping up smaller rivals. This is something that seems to have picked up pace with the so-called “global financial crisis”. Many believe we are heading towards a “new world order”, effectively controlled by a small number of large financial institutes.
That may or may not occur, but I personally cannot see how the whole world can operate that way exclusively. There will always be a need for tradesmen, local specialists, corner shops and so on. This gives a clue to the type of economy, and the type of business activity that I believe can, and will, bring back the boom times (notwithstanding my view that boom and bust cycles only exist if you allow them to!)
Small business can, and perhaps MUST, play a central role in the “revival”. This is not a new idea, nor is it a revolutionary one. The world in 2010, and beyond needs a different economy from the “Gordon Gecko” philosophy of the 80s, and from the increasing globalisation of the 90s and 00s.
You don’t need to go too far back to find times when small businesses and cottage industries provided not only an economic backbone, but provided the infrastructure for strong communities and societies. This is the way of the future, and will perhaps be essential to the long-term survival of modern society, perhaps even our species.
Creating strong networks of small businesses provides a tightly connected, self-supporting foundation to any town, village or city. But in this technological age, things don’t have to stop there. Small businesses can now harness the power and reach of the Internet to forge alliances and build networks on a global basis. At an even smaller scale, home business operators can build similarly global networks from the comfort of their own homes!
The net result is a collection of strong links which, when combined, lead to flexible, adaptable and highly resilient networks. Contrast this with the potentially fragile nature of a seemingly stable, global company (as we have seen in recent times).
But there is more to this than pure economics; society itself will benefit from this way of working. Connections and relationships will be encouraged at a local level in several ways. Not only amongst the business operators themselves, but between businesses and their customers. Instead of purchasing products and services from “Faceless Multinational Inc”, people will see a return to dealing with a local expert who can not only sell them something, but can offer support, advice and assistance.
Globalisation is without doubt here to stay, certainly in terms of financial institutes. But as large corporates merge they become bigger, they become less agile, and the changes expose more and more gaps in all kinds of markets. Big business cannot cater for individuals in the same way that other individuals can, and this is likely to provide the spark for something of a small business rennaissance.
Are you ready for the opportunities that will present themselves?