Last night, RIT (plus one from MCC) and U of R gathered for a heated, yet well-spirited debate on a rather interesting topic (see flyer to the right). There were a number of great arguments for each side, which resulted in a split decision. The judges voted in favor of RIT, and the audience favored U of R. The debate also brought a surprisingly strong turnout from both schools, so it was great to see support for the event.
I’d like to spin this topic a little bit and discuss it from a global marketing perspective. Do small businesses currently have the resources to be successful on a global scale, and, is it in the best interest of the government to prioritize small business and entrepreneurs over big business from a global standpoint?
Let’s tackle the first question. One of the points that was repeatably stated last night is that 4 out of 5 small businesses fail. Whether it’s lack of cash flow, lack of brand awareness, or simply poor management, it’s clear that small businesses are at an inherent disadvantage by virtue of being a small business. Obviously, some of the responsibility falls back on the small business itself, but when you couple those disadvantages with the difficulty of small business to secure funding through loans, it gets even worse. Throw in our current economic crisis and you see exactly how tough it is for a small business to be successful in America, let alone overseas. With all of that said, I’d have to say that small businesses generally don’t have the resources to enter the global market.
Now to the second question, where I again bring up a point from last night’s debate: Small businesses account for 13 times more patents than larger corporations do. Studies have been done; the research is there: Small businesses innovate better than big businesses do, not only because they have to in order to compete, but also because they are small, flexible, and not tied down by stockholders’ interests or strategic alliances with other corporations for the sake of… strategic alliances. For these reasons, I believe the government should prioritize small businesses so that they can innovate with other corporations overseas.
I’m not saying that the government should ignore big business altogether, but that small business should be rewarded for innovating and putting more money back into our economy, and I see huge potential in them being able to do this on a global scale. Think about it: a great idea in America crosses paths with a great (though unrelated) idea in China, and next thing you know, we have a viable solution for world hunger! Idealistic? Maybe a little, but there are definitely benefits for small innovative business to be able to go overseas, and I believe that we could realize the benefits of this sooner than we think.
I know this post was a little lengthy, but thanks for reading, and I’d love to hear your feedback and comments on this post, as I really enjoyed this topic.