Why do we coddle small businesses?

[Travis]

As the years go by and I observe more and more of how people run businesses, I'm agreeing more and more with "Dilbert". People really are promoted to their level of incompetence. Upper management seems to have low-to-zero grasp of how their own business operates, and they never listen to underlings because that would be admitting ignorance or losing face or something. The larger the company, the more out-of-touch the highest-ups are.

The corporate giant that runs (partially) my business has a history of insane decisions similar to what you describe above, only worse--they find a software product they think they can use, then they buy the company that made it, and then declare it's a huge savings because now it's an internal product! Except for the fact that the people who decided all this a) don't know how their own business works and whether this software will actually be useful, b) aren't technically savvy enough to understand the new software itself, and c) will not listen to anybody who has to implement or use the new software when they tell them that it's a huge step backwards and everything's much more inefficient than before. So what do they do? Upper management orders everyone to use the new software, and change all the processes to conform to the new software, retrain the workers or hire new ones. Never think before taking a step, never evaluate whether the step was a wise one, and never reverse course even if you're moving in the wrong direction. Ever. And naturally they complain, punish, and fire all around when they see the numbers and proof things are getting worse, which they chalk up to worker incompetence and disloyalty.

This is a "Fortune 500" company that wins awards for excellence and is heralded as a forerunner in technological sophistication.

Sounds like you'd love the new book A Colossal Failure of Common Sense. It's all about the fall of Lehman Brothers and I just finished reading it. A fascinating look into how a huge, respected company utterly refused to listen to their underlings and drove themselves off a cliff.

Now the trend that I've seen locally, both in places I've worked for and as a third party, is this: guy/gal (or both) start a company that is successful. They build it up from nothing and keep it going strong for decades. Then they retire and turn it over to their kids. Within two years it's bankrupt and shuttered or taken back over by the old folks.

This happened at two places I worked at and I've seen it happen to at least a half dozen other places. In all cases there was someone in the business way more qualified than the offspring that gets handed the keys and that person is always one of the first fired by said offspring.

 

[TragicMonkey]

In all cases there was someone in the business way more qualified than the offspring that gets handed the keys and that person is always one of the first fired by said offspring.

Of course they get fired! They know more than the new boss, and the new boss knows it. Can't have that, it looks bad.

One of my close friends at work has the eternal enmity of her boss and her boss's boss because she's smarter than they are and knows the business better and hasn't successfully hidden it. Now they have inferiority complexes so they try to sabotage her work so she'll look bad (they don't quite have the guts to fire her, they're cowards as well as jerks).

 

[ponderingturtle]

Move.

But Travis really likes complaining about everything wrong with his home town, if he moved how could he do that?

 

[TragicMonkey]

But Travis really likes complaining about everything wrong with his home town, if he moved how could he do that?

He needs to write a book about the wackiness of his town first, then move. If it's half as wacky as he's described, he'll have to move after it gets published. If there's one thing wacky people resent, it's having their wackiness exposed (if they don't get a cut of the profits from the exposure).

 

[Beerina]

Politicians are always falling all over themselves to try and appeal to small business. They constantly try to posture themselves as their savior.

It's very telling that the left, who hates big business above all, is so enamored with gigantic, cradle-to-grave government they're willing to abandon small businesses because they get in the way of things like requiring all business to have insurance, or offer maternity leave, or a thousand other things they'd love to impose on the nation, because the big businesses can afford it but the small ones often can't.

 

[TragicMonkey]

It's very telling that the left, who hates big business above all, is so enamored with gigantic, cradle-to-grave government they're willing to abandon small businesses because they get in the way of things like requiring all business to have insurance, or offer maternity leave, or a thousand other things they'd love to impose on the nation, because the big businesses can afford it but the small ones often can't.

Maybe some on "the left" want a bigger government precisely so it can offer things that businesses can't? So everyone can have them, and not just some who are employed by generous large companies?

 

[patchbunny]

There are great small businesses and there are bad ones, just like big businesses. The one big business that drives me insane in NC is my local CVS. It's never open. Ever. Every single time I am downtown the CVS is closed. I have never stepped foot inside of it, ever. Not once.

The lights are ALWAYS ON which makes it deceptive. But you go out of your way, find a place to park, walk up and pull the door. *thunk*

Eff CVS.

*psst* The door is marked "PUSH".

 

[commandlinegamer]

Or, I go to the computer store because I want a new power supply pack. Will they do that? No. They tell me to buy a whole new computer because it's not worth their time to bother with individual parts.

I'm hoping your post is being funny and/or facetious.

I'd rather sell someone a power supply than a whole new PC for a variety of reasons, e.g:

1. Unless I'm selling a high-end bespoke system, a new PC will have a pretty low mark-up, compared to the individual parts. Too much competition, off-the-shelf machines available in supermarkets, etc.

2. I get some satisfaction from fixing things, rather than just building something new from scratch.

3. Minimise the amount of electronic parts going to waste.

FWIW I think the larger operators are the ones which want to sell you a whole new system; the big retailers in the UK tend to have stores with a limited range of motherboards, PSUs, etc, with perhaps a slightly larger selection of certain peripherals, viz. optical drives, modems.

 

[fuelair]

Politicians are always falling all over themselves to try and appeal to small business. They constantly try to posture themselves as their savior.

Why?

I hate small businesses!

First off, they are never frigging open!

We have a tile store. It seems like every time I go there it's closed because the owners are attending a wedding, birthday, they've gone fishing or the weather's just isn't good so they didn't bother showing up.

Then the ones that do open are only open screwy hours. The plumbing supply store is open from 5:00AM to 2:30PM. Which are hours that I can never get down there. Everyone else I know is also continuously frustrated by their hours and I ran into the guy that runs the place one day and asked him why he does this. His reply, "I was a Marine and we got up early. That's what proper people do. I don't want the business of improper people!"



Secondly, their service/selection sucks!

Sometimes I want a piece of lumber. Just one piece. Like a 2x4 that's twelve feet long. Can I get that? No. The only lumber suppliers only sell in bulk and only to contractors. Consequently I end up driving 40 miles to Modesto to get the one piece of lumber I need from Lowe's.

Or, I go to the computer store because I want a new power supply pack. Will they do that? No. They tell me to buy a whole new computer because it's not worth their time to bother with individual parts.

Then I want a TV. Do they have the brand I want? No, they only sale Brand X because Brand X is American.

Or I want a book, but will the only bookstore sell me The God Delusion? Of course not. But they have a huge section devoted to Christian books and whole bookshelf with nothing but the Left Behind series. I can get them all; in hardcover, paperback, leatherbound or audio!

Third, they they always jerks/annoying!

I'm there to get a haircut. I don't want to hear about how the homosexuals are destroying society.

I'm there to buy a Blue Nile Lilly, I'm not there to hear about how Obama is a Communist.

I don't care that you think providing healthcare for the poor is evil because you think it will prevent you from buying another vintage Corvette. I just want an oil change!

You're not going to sell me a dozen donuts because I'm wearing a Berkley T-shirt? Serious?

No I do not want to hear about some new supposed tax on white people and I absolutely don't want to be invited to a KKK rally. Just make me my pastrami sandwich!

Lastly, they are hypocrites about capitalism!

So you're probably thinking, "Travis, if these businesses are so terrible surely some competition will close them down."

Yeah, just try it.

Just try and get a loan to open a hardware store when the bank operators are best friends with the previously mentioned Plumbing Supply guy who thinks you're not worth serving if you aren't up before the sun.

So really the only way it could happen would be for some outsider with their own money to try it. And so back in 2002 Home Depot decides it wants to move in. I'm cheering for it because now I can get my tile/plumbing supplies someplace that's actually open. I can buy that one odd piece of lumber when I need it and I can get some plants without having to hear rants from some radical right winger.

But the local small businesses cry foul, say it will drive them into the ground and the politicians pass an "anti big-box store" law that prevents Home Depot from building a new store. The small business owners kick back to enjoy their little monopolies.

Then the same thing is done when Best Buy tries to open a store.

Ditto Barnes & Noble.

Safeway tries to expand and open a deli...that actually does happen eventually but only because zoning laws allowed it to happen without the need for approval. Boy was that law changed fast after that loop hole was discovered.

Eventually Lowe's finds it's own loophole and is now building a store but only after the local businessmen mount a huge lawsuit claiming the store will "destroy the rural character of the community" that delayed it by three years before being thrown out by a Federal District Judge. Charges that the Judge was an "obvious Communist" are quickly thrown around. Because we all know that allowing free enterprise is the hallmark of communism.

So when I hear politicians spewing their soundbites about protecting the Mom & Pop stores I can only wonder, "why?" How is America better by using government to protect these idiot bigots in their own little business fiefdoms?

I say let the mega-corporations crush them into the earth!

Travis - before it completely destroys the nice, thoughtful you, GET THE HELL OUT OF THERE!!!!!!!!! Extremely few small businesses are like that out here in the real world. They can't be because they would have very few customers and go out of business!! You are clearly not living in the real world there.

 

[Region Rat]

Third, they they always jerks/annoying!

I'm there to get a haircut. I don't want to hear about how the homosexuals are destroying society.

I'm there to buy a Blue Nile Lilly, I'm not there to hear about how Obama is a Communist.

I don't care that you think providing healthcare for the poor is evil because you think it will prevent you from buying another vintage Corvette. I just want an oil change!

You're not going to sell me a dozen donuts because I'm wearing a Berkley T-shirt? Serious?

No I do not want to hear about some new supposed tax on white people and I absolutely don't want to be invited to a KKK rally. Just make me my pastrami sandwich!

I find it very interesting that all of the complaints you have described here with small businesses are really complaints about right wing extremist opinions. Are there no left wing small business owners in your area who you have a problem with?

Although I might like to meet the person who would actually state that he does not want to provide health care to the poor (because it is evil), and find out how that keeps him from buying a vintage Corvette.

 

[willhaven]

*psst* The door is marked "PUSH".

hah

 

[MarkCorrigan]

It's very telling that the left, who hates big business above all, is so enamored with gigantic, cradle-to-grave government they're willing to abandon small businesses because they get in the way of things like requiring all business to have insurance, or offer maternity leave, or a thousand other things they'd love to impose on the nation, because the big businesses can afford it but the small ones often can't.

Uh huh, we just want those things because we don't care about small businesses.

Back on Planet Earth, I actually have a huge problem with businesses giving out medical insurance to their workers, because I think that is a huge and unnecessary drain on them. I'd much rather have a nationalised healthcare system thanks.

 

[Ron Swanson]

Politicians are always falling all over themselves to try and appeal to small business. They constantly try to posture themselves as their savior.

Why?

The answer is simple .. it's because of numbers ... Small Business in the US pay almost HALF of the non-government payroll dollars in the entire country

In the last 15 years small business has created almost 70% of all new jobs in the country

40% of high tech employees work for small business

Small business make up over 90% of all exports.

And small businesses invent stuff .. LOTS of it, they produce 10 times more patents per employee than large patenting firms.

Sure we are a quirky bunch .. my store is only open 9 to 5 .. 4 days a week, and I treat every customer like an interruption to my busy day ... but the stuff I do is very difficult to get done anywhere else, so people take it with a grain of salt and keep coming back for more

 

[Shalamar]

Uh huh, we just want those things because we don't care about small businesses.

Back on Planet Earth, I actually have a huge problem with businesses giving out medical insurance to their workers, because I think that is a huge and unnecessary drain on them. I'd much rather have a nationalised healthcare system thanks.

Unfortunately, nationalized health care is exactly like video games and will result in the deaths of millions of people like the holocaust.

Or.. so I've heard.

 

[INRM]

Beerina,

It's very telling that the left, who hates big business above all, is so enamored with gigantic, cradle-to-grave government they're willing to abandon small businesses because they get in the way of things like requiring all business to have insurance, or offer maternity leave, or a thousand other things they'd love to impose on the nation, because the big businesses can afford it but the small ones often can't.

Well, the Left-Wing and the Right-Wing is basically a false-dichotomy. As you said the real axis to look at is not Left/Right axis, not the Democrat/Republican Axis, but the Individual-Freedom/State-Control Axis.


INRM

 

[Darth Rotor]

Why do we coddle small businesses?

Because Apple and Microsoft and Intel were once small businesses.

 

[Travis]

Because Apple and Microsoft and Intel were once small businesses.

And so once was Wal-Mart. Another aspect of these anti-big box laws is they seem to be punishing success. I mean at what point do we stop calling it a Mom & Pop business and start calling it "bad scary big business?"

 

[MarkCorrigan]

And so once was Wal-Mart. Another aspect of these anti-big box laws is they seem to be punishing success. I mean at what point do we stop calling it a Mom & Pop business and start calling it "bad scary big business?"

Well, as far as I'm concerned, I don't have a problem with large businesses. I have a problem with corrupt or amoral businesses, which tend to be mega corporations. I also dislike how corporations are treated in law, but that isn't a problem with the business itself.

 

[BenBurch]

Travis, you really need to move to a larger place.

 

[GreNME]

Politicians are always falling all over themselves to try and appeal to small business.

That's because, as has been pointed out, that several notable large corporations used to be small businesses, and it behooves our economic sensibilities to keep that idea well-cemented in people's minds in order to keep people trying to become part of the future Microsoft. In a funny way it's a lot like preachers and pastors promising folks in the pew that there's a better life waiting for them as long as they suffer and deny themselves in this one-- though I will say that at least the "small business" promise has an actual chance (however tiny) of actually coming to fruition and making the person wealthy. It's part of the grease that keeps our economic machine moving. Also, a "small business" is a great location for a larger corporation to stick specialized business units in order to take advantage of more loans (thanks SBA), more government contracts, and other advantages of that type.

And yeah, I know I'm cynical, and I'm also aware that SMBs really do have more flexibility to innovate than larger bureaucratic machines. But I think the positives (you could make it big!) are way too heavily focused on while the risks of the negatives (you could fail big, lose everything, and die broke) are downplayed too often, while the actual chances of success are only slightly better than that of a lottery.