An interesting post by Peter Bregman on the Harvard Business Review;
http://blogs.harvardbusiness.org/bregman/2009/03/why-small-companies-will-win-i.html
While I agree with the sentiment and Peter’s conclusion, I think there’s a more compelling, fundamental reason why small to medium businesses will be stronger when the world economy recovers.
Responsibility.
The notable thing about the current collapse is the total absense of repsonsibility from those who created the problems. From the overpaid villains of AIG through to the politicians and regulators who, at best, stood on the sidelines and allowed the excesses to happen.
The main cause of this is because managers have become isolated from the consequences. They take their pay packet, and their fat bonuses, home regardless of the shareholder wealth they destroy.
With small to medium business the owners and managers have to deliver the service they are paid to do. Otherwise the business goes quickly broke along with the proprietors.
Big business grew big because they had the technology to do so. They only big because they had the market and political power to protect their position.
Technology levelled the playing field between small business long ago, the current market turmoil and the political changes that will follow will strip most of big businesses’ advantages.
Which will leave the well motivated, well managed and responsible companies to succeed.
Only a few of these will be big businesses.