Lesson 5: Small Is Beautiful Only in the Speeches

Most of the working population is employed by small and medium-sized companies. In many countries over 95% of all companies are small. Still, having a small business is no pleasure ride unless you are merely just aiming to be a lifetime entrepreneur who wants to get his/her bills paid but expects nothing more.

Running a small company is like constantly being under-equipped and sleep deprived—you seldom are feeling happy and relaxed longer than a few moments at a time. Small companies have it harder. You pay higher interest rates on your loans, you have less real choice for financial instruments, you don’t have the extensive support system and network that larger companies rely on, and the legislative burdens are ever increasing, never reducing by the year. Expect hard work with very little complements and support for your concerns. You are the workhorse of the society everyone expects to do his/her job without much noise and complaints.

Having a plenty of small companies around you does not mean that it is easier to deal with other small companies nor that you’re especially supported by the public sector. Small means often incompetent, under staffed, and unreliable. Lots of hassle and very little payoffs.

And why politicians are not very interested of SMEs? These companies do not contribute to the fundraisers due to their chronic lack of capital and excess funds or because they have better use for their hard earned money. Larger institutions are capable of providing decision-makers with favours, power, and prestige that often motives them to trade special-interest privileges at the expense of the rest of the society. So small might be beautiful but you are on your own.

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