In the April 2009 issue of Decanter magazine, author Margaret Rand discusses how wineries are dealing with the recession. She makes an interesting point about how small businesses are persevering while the big guys are drowning in debt and going out of business.
Quoting wine consultant Mike Paul, Margaret discusses wineries in the context of small businesses in general:
“‘How will the independents cope? The usual ways, is the answer: by being flexible and imaginative, by giving better service, and by being leaner and fitter than their rivals.’ On the plus side, Paul says that ‘family businesses are six times less worried about going under than normal businesses. Their cost base isn’t that high, and they have less debt and are better prepared for a recession.’”
Six times less worried? I’m not sure worry can be measured this exactly, but the sentiment is an important one. Small businesses are always in a sort of recession. We have a lack of cash flow, a small pool of resources, and we constantly worry about whether we will succeed in both the short and long terms. It’s so refreshing, in the context of panic and the collapsing of some of the country’s largest companies, to hear that small businesses are more likely to “make it.”
Perhaps in the long run the country will be better off for the elimination of big companies that have dominated, and in effect, monopolized, many of our industries. Small book stores that can’t compete with Barnes & Noble would get more business if Barnes & Noble wasn’t around. A small grocery store would welcome a new flood of customers that used to shop at a nearby Schnuck’s.
Can we get back to the days of the corner market, instead of the corner strip mall? I think so. Is it possible that this recession will leave behind an economic climate more friendly to small businesses? I hope so!
We all love some of the things small businesses have to offer, like primo service, unique products, and the feeling that our money is feeding someone’s family as opposed to financing a 12th vacation for a CEO. But many of us compromise all of those good feelings to save a few bucks by shopping at a conglomerate. Is it worth it?
I think now would be a good time for all of us to patronize small businesses. Let’s discourage the monopolizing of every industry and get ready for what lies ahead. Perhaps small businesses are our future.
In the end, it’s the hard work and blood, sweat, and tears of small business owners that will see this economy through the rough times. Making sure the rich stay rich can’t be our priority anymore.
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