The spirit of commerce is alive and well, thanks to modern technology. A new report details how small and mid-sized businesses can revitalize the economy using good old-fashioned competition.
The report, published by the Center for Public Policy Innovation, stresses the importance of competition to a thriving economy. Small and mid-sized businesses are a large part of that, the report says, with a competitive spirit that mimics the very drive our country’s economy was founded on. It is in these smaller businesses that the fire continues to burn even during the roughest economic times in recent history.
Thanks to technology, those smaller companies can now compete with the largest corporations in the country. Cloud services are leveling the playing field, allowing small and mid-sized businesses to tackle larger projects and give the appearance of large numbers of employees. The report referenced Priceline, a company that required three million dollars in technology in 1997 but today could probably be set up using only $1,000 in start-up funding.
As recently as fifteen years ago, if an entrepreneur wanted to start a new company, network equipment would have to be set up, along with phone lines and personnel to answer them. Today’s business owner can rely on Cloud solutions like Ring Central to funnel all phone calls through a centralized automated phone system that even routes callers to one individual’s cell phone. This can make a one-man operation seem like a business with hundreds of employees.
Cloud solutions for e-mail, document management, file sharing, and billing eliminate the need for staff, and on-site equipment. For small monthly fees, small and mid-sized business owners can set up operations and continue to build as business grows. Even larger companies are learning to harness the power of the Cloud for major cost savings.
The report emphasized the importance of small businesses and start-ups, exploring ways the government can foster the innovation these companies bring. Through the Startup America Partnership, young entrepreneurs hope to encourage small businesses and start-ups to work together to develop businesses that increase employment opportunities and stimulate the economy. These business leaders believe that small and mid-sized businesses can work together, gaining access to resources they might not have on their own.
The government provided bailout money during economic tough times, the CPPI states, but small businesses are struggling alongside the larger businesses. CPPI points out that it is important to nurture small businesses, which often can have difficult times obtaining cash when times are tough. The Startup Act seeks to promote growth of start-ups, emphasizing that most job growth has come from businesses that are less than five years old. New businesses also are responsible for most of the innovative ideas driving today’s technology, the act points out.
Using data from The Kauffman Foundation, the Startup Act is being championed by Republican senator Jerry Moran and Democratic senator Mark Warner. The legislators are working to more closely incite government to provide more support for small businesses.