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Are Monopolies Bad For Small Business?

In the middle of the last century, Charles Wilson uttered an iconic phrase that underscored the era:

 

“What’s good for General Motors is good for America.”

 

The line has made its way into the hearts and minds of American consumers, and has spread far beyond the automotive industry.

 

Monopolies dominate. Amazon, Walmart, Microsoft and Facebook are just some examples of companies with choke holds on everything from groceries to your online presence.

 

But, consumers are expressing their distaste for monolithic markets. In the past year, we’ve seen hundreds of large-scale retailers close their doors.

 

Sears, JC Penney, and Macy’s are just a few.

 

So, when it comes to small business, things seem to be looking up. Right?

 

While the decline of retail is a major factor in small business optimism, American entrepreneurship is at its lowest level in almost a century, according to the Economic Innovation Group

 

Well, nobody really seems sure. While the decline of retail is a major factor in small business optimism, American entrepreneurship is at its lowest level in almost a century, according to the Economic Innovation Group.

 

So, the question remains: is what’s good for big companies good for small business and, more importantly, good for America?

 

The short answer: not really.

 
 

Cracks in the Armor

 

Monopolizing businesses are convenient. Everything you need is in one place, and often comes at decently low prices.

 

Think Walmart. Where can you get a dozen eggs, lawn chairs, and The Office box set in one place? Granted, there are a few options, but Walmart is the most popular.

 

Amazon does the same, while making the experience even more convenient.

 

So, what’s wrong with a cheap, one-stop shop? Customers hate it.

 

What the death of retailers like Macy’s and Sears has shown us is that people don’t want to shop at a department store. The business-model has barely cracked the 21st century, and is failing as we speak.

 

 

Niche is where it’s at. Today’s online consumer markets have given endless options and choices to customers. Instead of compromising with an inferior product, people can scour the web to find exactly what they want.

 

This is where entrepreneurs come in. What seems to be killing the American small business, may in fact be propelling it. Business owners can now identify and fill a niche the moment it arises in a particular market.

 

While the armor of monopoly seems strong, small businesses are filling the gaps, and satisfying those customers.

 
 

Investing in Innovation

 

Big businesses have a ton of money.

 

They can build a store on every corner, ship their goods anywhere, and still hand out bonuses to thousands of employees. So, that should mean that they’re on the cutting edge of innovations too.

 

The funds are there and, often, innovation is what got them where they are.

 

Big business stifles innovation, and small business fosters it

 

But, surprisingly, big businesses are often the most reluctant to embrace change. Whatever they’re doing is working, and many customers still flock to them for their needs.

 

Plus, while they may have the funds, changes in big operations take much longer than in small ones. Decisions take longer to make, and by the time they reach a consensus, it may be too late.

 

This is yet another “in” for small businesses and entrepreneurs.

 

While they might not have the resources that big businesses do, their size makes them much more adaptable to changes in the market, and dynamic enough to adopt new technologies.

 

These innovations can make processes easier, cheaper, and safer through the adoption of new methods. Most recently, blockchain has made a major splash in the financial scene, with big institutions losing popularity behind smaller fintech firms.

 

But, that’s only one example. Ultimately, big business stifles innovation, and small business fosters it. If the monopolizing big guys don’t get with the times, they won’t be monopolies for long.

 
 

With Power Comes Responsibility

 

When one company has monopolized an entire market, they can generally do whatever they want.

 

Though laws are in place to prevent this, large companies have been accused of questionable labor practices, inflating prices, and other abuses that generally go unchecked.

 

There’s a price to pay for the convenience that monopolies offer. Though it’s often tucked away, small businesses and entrepreneurs are shedding light, and offering alternatives.

 

Though laws are in place to prevent this, large companies have been accused of questionable labor practices, inflating prices, and other abuses that generally go unchecked.

 

One of the major reasons why consumers don’t leave or challenge big businesses’ questionable practices is because they don’t know any better. Some of these companies have dominated sectors for so long that customers have normalized the issues.

 

Banks are a great example of this. Wells Fargo, Bank of America and company have dominated the financial space in America for decades. They have the most money, most customers, and most room to play with the rules.

 

Scandals after scandals have flooded news cycles and customers keep coming back to the banks that charge too much, and don’t tell them enough.

 

These issues and abuses make room for challengers, however, and have allowed countless businesses and entrepreneurs the space to enter what was once a closed market.

 

Veem is one of those companies.

 

Veem takes on the high prices, insecurity, and slowness of banks to offer the best possible payments for small businesses.


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Global transfers are trackable, foreign exchange rates are competitive, and our customer success team is second to none.

 

But, Veem isn’t the only one. While we are innovating the payments space, thousands of small businesses and entrepreneurs are combating monopolies.

 

What’s good for big business isn’t good enough for America. We can do better.