Monday, February 6, 2006

Small Businesses, Why ?

Starting a small business is tough. It is also the tough work that makes the economy work. We have all heard the statistics about the percentage of the US economy that is driven by small business.

We also all know that in spite of brands like Walmart and Home Depot penetrating our daily lives that small businesses drive alot of what gets done. I have often wondered why this happens given the difficulty of starting a small business. (Having started a couple myself, it has to be done of the more difficult things out there to do) But people do it... and we all buy from them.

Think about all the little companies like David Hyres Pest Control and Elite Housekeeping Services that we all use everyday. Why do these people do it ?

From my discussions here are some of the things I found:

One, no one can tell you know to starting a new businesses, especially a service business- you can just decide one day and get out in do it. No resumes, No interviews, Just execution.

Two, a sense of community. Alot of people don't want to get lost in the corporate world, a big part of thier being is connecting to other people and a small business gives them a vehicle to do this and make a living at the same time.

Three, control of thier lives. You only have to look at Enron to see how the security of corporate america can be an illusion. Job Security make in fact be an illusion for everyone now. But small businesses offer you control. I remember when I first left a F500 company to start a company and someone told me that I was taking a big risk. Maybe, but at least it was risk that was in my control.

Fourth, Taxes. I won't spend alot of time on this, but this is often times a big driver.

So people do it, and they will keep doing it. At MerchantCircle, our goal is to make it easier for the small local businesses to take on the WalMart's of the world.


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