Yes, you do, unless your idea of business is being a gofer or toilet-scrubber. Even then, you still need money to pay for gas, supplies, and your own living expenses.
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Romney vs. Obama
- Thread starter OutofDate1980
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OutofDate1980
Android Expert
Until Huge Firm discovers attractive profits and enters market. Has rules made to require bonding, etc. things to drive up capital and fixed costs, sets prices to drive out the lessor rivals. Huge Firm has capital, so can afford this investment. Once rivals are out, then prices are raised to recoup capital costs and obtain attractive profits.
Potential small rivals take note of what Huge Firm has done in the past.
Note: I'm not opposed to regulations, but concerned by whom and why written. This is why money matters in politics.
ylexot
Android Expert
Pfizer, the largest pharmaceutical company was started by a German immigrant and his cousin. I doubt they had much money.
No, you're not going to have a Fortune 500 company tomorrow starting with the lint in your pocket. But all the money in the world won't guarantee a successful business either.
ElasticNinja
Android Expert
Well hoarding is a fairly natural thing, Apple for example has several dozen billion US dollars in a cash pile.
Sorry about my lack of knowledge about the future and mild optimism.
And feasibility studies are very important and under appreciated, maybe people just dont like technocrats.
ylexot
Android Expert
Cisco is worth ~$1.6T and has ~$90B in reserve. That's not hoarding.
ylexot
Android Expert
And Apple is worth many trillions of dollars.
ylexot
Android Expert
And the biggest law that they use is the tax code. The FairTax eliminates that...and also eliminates business taxes.
OutofDate1980
Android Expert
Successful businesses love technocrats and spend a great deal of money on market research, product feasibility studies, etc...:adore:
Are you joking or what? Do you realize the difference in the state of science and pharmaceutical industry between now and 1849. Do you even have a clue the money you need to operate a single research lab for a year?
A.Nonymous
Extreme Android User
The vast majority of businesses in the US are small businesses, not huge ones like you mentioned. Most people are employed by small businesses or medium sized ones not large conglomerates that employ thousands.
But the majority of taxes are paid by huge corporations. And most new and groundbreaking products are also developed by large companies. Small businesses only serve to provide for the owners.
ylexot
Android Expert
You NEVER start a business without a product. If you want to start a pharmaceutical business, you start by making something known. That's what Pfizer did. If your business actually works, you make a profit and can then do R&D.
WRONG! Genetech was started by a biochemist and a venture capitalist in 1976. Their first product, synthetic "human" insulin, was approved by FDA in 1982.
Generics manufacturers make the product that works without the intention of research and development.
OutofDate1980
Android Expert
Market Cap ~$83.3B and has ~$48.4B in cash & equivalents.
Even to make a known pharmaceutical, you need to meet quality control requirements, hire chemists, buy equipment, lease a building etc. You need capital, period!
Times are different. In 1849, you could sell your poop extract as medicine.
OutofDate1980
Android Expert
Would do nothing to address the real issue of the legal bribery/extortion political system. Regulation lobbying is where the big money is spent.
OutofDate1980
Android Expert
Sounds like a belief, care to define small, medium, and large ? Employee compensation (wages, benefits, options, etc) between the sub-groups ?
Not sure how this relates to access to capital gives one a competitive advantage.
I don't really see any difference in who wins. It's mainly a pissing contest between what their parties ideology might do when they get into office. Once one is in office business as usual while people wait on the sidelines to see if their winner will do that one thing he said he was going to do during his campaign trail for the next 4 years.
The media will still concentrate on what celebrities are doing and most people will go back to their reality TV.
The media will still concentrate on what celebrities are doing and most people will go back to their reality TV.
A.Nonymous
Extreme Android User
Federal numbers - 99.7 firms are small businesses (under 500 employees) and they employ half of all private sector employees and pay 44 percent of wages (2007 numbers). They also produce 13 times more patents than other companies which kind of puts the myth to the idea that small companies aren't innovating. Heck, large companies like Google and MS gobble up small businesses all the time because that is where the ideas are at.
Most of the information in your post is misleading.
Here is why:
The study that concluded that small patenting firms are 13 times more innovative per employee than big corporations looked only at small firms that patent. You have completely omitted the fact that only a minority of small firms (mostly biotechnology, medical equipment, chemicals) patent anything. Most small businesses do not patent anything at all. And don't get carried away. When they mean small in this study, they usually refer to a business with less than 500 people. Do you know how much capital is needed to start a firm with only 100 highly educated workers? Raw salary alone would amount to at least 4 million dollars annually. I am not even talking about other expenses.
Small businesses employ 49% of workers but account for only 25% of U.S. exports, which are important for positive trade balance. Small businesses pretty much cluster around big employers to fulfill local needs of corporate employees. They usually don't bring in any net money to town. Once big paper mill or factory in a small town disappears, small businesses crumble.
Small businesses pay smaller wages. Workers in big companies earn 57% more than workers in companies with less than 100 workers.
I have found most of this information here:
www.innovationfiles.org/in-praise-of-big-business-part-1/
The author provides the links to the original studies to back up his claims, including the one on innovation in small patenting firms.
Anyway, most small businesses are crap not worthy of attention.
A.Nonymous
Extreme Android User
You could not be more wrong. I forgot to post my source. It's the US Small Business Office. Where do you think big businesses get started? Google started just a few years ago in a college dorm room. Facebook did the same thing. Heck Facebook started in the middle of a recession. Neither of those companies are small today of course, but both started off that way.
Chances are your auto mechanic is a small business. Your hair stylist/barber is a small business. Your dog groomer is a small business. Your doctor's office is a small business. The hole in the wall place that serves the amazing burger is a small business. The laundromat is a small business. The idea that small businesses are all crap or that they only serve large businesses is completely wrong.
None of this even takes into account the small businesses that have no payroll. The friend of mine I mentioned earlier who does odd jobs is one of them. I used to know another guy who ran an HVAC business. He did the work and his wife did the books. There are many, many more businesses like this and you probably do business with them and don't even realize it.
Chances are your auto mechanic is a small business. Your hair stylist/barber is a small business. Your dog groomer is a small business. Your doctor's office is a small business. The hole in the wall place that serves the amazing burger is a small business. The laundromat is a small business. The idea that small businesses are all crap or that they only serve large businesses is completely wrong.
None of this even takes into account the small businesses that have no payroll. The friend of mine I mentioned earlier who does odd jobs is one of them. I used to know another guy who ran an HVAC business. He did the work and his wife did the books. There are many, many more businesses like this and you probably do business with them and don't even realize it.
gamblor01
Well-Known Member
Wow, I have been out of the loop for a bit! I just posted a sarcastic comment about not taxing business and now we have all sorts of discussion. The beautiful part is, you are all illustrating my point. There is typically no easy answer and arguments on both sides of the spectrum have merit. We need to meet somewhere in the middle to best solve our problems but little to none of our politicians seem to be willing to do so. Apparently compromise = weakness = voted out of office and shunned by your own party?
A.Nonymous
Extreme Android User
I think part of the problem is the public doesn't want compromisers. They want hard line, party liners who will ram their agenda down their opponents throat no matter what the other guy tries to do. These people with back bones of steel are the ones we need to lead us to the future. Reality is all that leads to is the political fighting we see today and nothing gets done.
Well Facebook is still a worthless crap today; it actually does not hire many employees even today. Google is a great success story, but most small businesses will never become Google and are worthless crap. I am not talking about small technology or pharmaceutical companies; those can be very innovative and useful.
You probably misunderstood what I have said. Most small businesses rotate around and serve directly or indirectly to big corporations or their employees. Where do you think the money to pay the doctor or mechanic come from? Why do you think people in small towns or rural areas are mostly poor unless there is a big corporate employer in town? Following your logic, they could all start small businesses and prosper, but it doesn't happen; most small businesses bring no net money in town. They just recirculate the existing money locally.
The only small business I do business monthly with is a gas station; that's it. I cook myself better food than most restaurants I have been to. I clean my place myself; I am not lazy, and I wouldn't trust some maid to clean my place. I don't use a laundromat, for I have my own washing machine built by a corporation. I take care of my car myself and use only synthetic oil; if I went to a small business, I would be overcharged for a crappy fast job. Most oil changing places don't even give enough time for used oil to drain. I don't have a dog, but when I did, I did not need a groomer. When I need a physician, I prefer to go to a good academic medical center, for many small physician offices care only how to maximize their profit. Also, many physicians are members of large groups of physicians; many of them are not small businesses.
Once again, small businesses are not essential, but big companies are. My home is stuffed with devices made by corporations that make my life easy, such as washing machine, microwave, oven, personal computer, smartphone etc. In addition, big companies contribute the most to the budget and are responsible for the majority of exports. Big companies make it possible to live the American lifestyle.
A.Nonymous
Extreme Android User
Facebook has over 3,000 employees and a market cap around $60-70 billion. Not sure how that qualifies as "worthless crap". You have much different standards than I do I guess.
Given that half the workforce is employed by a small business, I would guess that at least half of those businesses customers are small business employees.
Small town residents are mostly poor? Wow. Elitist much? Around here the small towns house a lot of the very wealthy people. Those people are small business owners. They own 2-3 car lots or a chain of laundromats or whatever.
Have you no experience with doctor's offices are not? The vast majority of them are small businesses. Dr. Jones in private practice isn't a small business? A handful of docs in private practice together isn't a small business? And you think the care you get there is worse? Elitist much?
Small businesses are the life blood of the economy. How could they not be when they make up 99% of all companies and employ half the work force. Who picks up your trash? A small business. Who services those appliances when they die? A small business. Who repairs your car? A small business. Who sold you that car in the first place? A small business. The local tire store you buy your tires at? A small business. You don't even realize it but you give your money to small businesses all the time.
Given that half the workforce is employed by a small business, I would guess that at least half of those businesses customers are small business employees.
Small town residents are mostly poor? Wow. Elitist much? Around here the small towns house a lot of the very wealthy people. Those people are small business owners. They own 2-3 car lots or a chain of laundromats or whatever.
Have you no experience with doctor's offices are not? The vast majority of them are small businesses. Dr. Jones in private practice isn't a small business? A handful of docs in private practice together isn't a small business? And you think the care you get there is worse? Elitist much?
Small businesses are the life blood of the economy. How could they not be when they make up 99% of all companies and employ half the work force. Who picks up your trash? A small business. Who services those appliances when they die? A small business. Who repairs your car? A small business. Who sold you that car in the first place? A small business. The local tire store you buy your tires at? A small business. You don't even realize it but you give your money to small businesses all the time.
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