Lenin II
24th November 2007, 01:02
Originally posted by Martov+November 22, 2007 08:08 pm--> (Martov @ November 22, 2007 08:08 pm)
Lenin
[email protected] 23, 2007 02:23 am
While it is certainly true that small businesses in the capitalist system are exploitive by nature, the small business is soon to be a thing of the past. Globalization, corporatism and brand names are taking over the world. In fact, small business owners are frequently bankrupted by large companies and absorbed into the proletariat, thus hopefully losing their faith in the capitalist system and the lie of the "American Dream" overnight. This is happening more and more, exactly as Marx predicted.
Provide evidence.
If anything, the number of small businesses has increased.
For example, when looking at Australia - a fairly advanced capitalist country, the following statistics are interesting:
At June 2006, there were 807,581 (41.1%) employing businesses and 1,156,326 (58.9%) non-employing businesses.
The majority of employing businesses, 721,569 (89.3%) employed less than 20 employees as at June 2006. This comprised 494,196 (68.5%) businesses with 1-4 employees and 227,373 (31.5%) businesses with 5-19 employees. There were also 80,215 (9.9%) employing businesses with 20 to 199 employees and 5,797 (<1%) employing businesses with 200+ employees.
The survival rates for businesses operating since June 2003 varied significantly between the employing (87.3%) and the non-employing (53.8%) populations. In addition, for employing businesses, survival rates were slightly higher for businesses employing between 5-19 employees (90.4%) and 20-199 employees (90.2%).
In the period June 2005-06, entry rates were higher for non-employing businesses (18.4%) and business employing 1-4 employees (16.8%). Conversely, entry rates for businesses employing five or more employees were at noticeably lower levels. Exit rates over the same period were highest for non-employing businesses (18.2%) and businesses employing 1-4 employees (12.2%), but were lowest for businesses employing between 20-199 staff (6.1%). Source: Australian Bureau of Statistics, Business Demography (http://www.abs.gov.au/Ausstats/
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Unfortunately, it is rather difficult to find statistics which compare the number of self-employed or small businesses a century ago. However, I would think that it would be reasonable to argue that small business has grown. Firstly, the advent of the internet and communication technology allows businesses to be run from home. Secondly, the increased availability of loan capital. Here are statistics to prove the increase in the number of businesses ran from home:
In June 2004 there were 1,660,000 operators of the 1,269,000 non-agricultural small businesses in Australia. Home based businesses make up a very large proportion of the total small business population in Australia. At June 2004, it was estimated that 67.5% of all small businesses were home based, compared to 58.3% in February 1997. [That was just 7 years difference!] These businesses were operated by 1,040,000 people, representing 62.6% of all small business operators. This reflected annual increases in the proportions of home based businesses and operators, 1.0 and 0.5 percentage points respectively. Characteristics of Small Business, Australia (http://www.abs.gov.au/Ausstats/
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So, small business has not become a thing of the past.
In fact, its scope is increasing.
Whether larger corporations will absorb smaller businesses is yet to be seen. [/b]
The sheer NUMBER of businesses is a different statistic than how much profit they make or how much capital they control. The vast majority of businesses ARE small businesses.