Comment by Willish42
3 years ago
Exactly. There are tons of smaller businesses not focused on infinitely growing that get by just fine. Especially in rural areas like these
3 years ago
Exactly. There are tons of smaller businesses not focused on infinitely growing that get by just fine. Especially in rural areas like these
for every small business that "gets by", there are 2 (probably more) that go out of business due to not having grown sufficiently by the time they face some competition.
I think this is a weird framing of the issue. Sure, lots of businesses go under, and maybe being larger would have saved them, but maybe not. Plenty of VC-funded businesses go under precisely because they tried to be too large, when they could have perfectly comfortably served a few satisfied initial clients for enough money to pay all their bills.
I think the idea that companies go under because they aren't ambitious enough says more about modern attitudes towards growth than it does about the reality of business.
When I say growth I mean net profits. Those imploding VC companies were never profitable.
A larger profitable company has more chance of survival by shrinking into a smaller profitable company. It's a buffer. But an already small profitable company doesn't have that option, there's more risk.
> for every small business that "gets by", there are 2 (probably more) that go out of business due to not having grown sufficiently by the time they face some competition.
If your goal is to fight a monopoly, then the mere existence of competition means that you've accomplished your goal.