Gap Widens Between Large and Small Business
Big business is ever looking to swallow small business, either by acquisition or outright displacement.
By: Palzewicz for Wisconsin
"The pandemic has exasperated the market share movement from small business to big business," Palzewicz explained. "The stock market is still doing relatively well because the big businesses are gobbling up market share from the small businesses. Think about this—every mom and pop retailer is probably not going to come back unless they were sitting on a large sum of cash, or they had a plan to continue to sell online even though they were competing against Amazon."
Palzewicz, a small business owner, wants the economy to function, with all playing their part.
"I am a pro-business Democrat," said Palzewicz. "Every small business that deals with a big business knows that they won't get paid for 90 days. Large businesses learned a long time ago that they don't have to pay a small business right away. Small business must have enough cash to produce the product that the big business wants knowing that they won't be paid for 90 days. This is the hidden cost to small business owners. Not only does big business have access to financing at incredibly low rates, they use small business cash flow for their own benefit."
Palzewicz understands that in order to compete, small business needs access to resources big business takes for granted. If a small business is a supplier to a large business, even simple things like getting paid are difficult.
"You have to have a game plan when you go after big business, which is why small business tends to stay small, because you will have to have a good banking relationship to be able to float that cost over 90 to 120 days. Small business can't say that they'll pay their employees when they get paid, or that they'll pay their vendors when they get paid. It doesn't work that way."
"Small businesses are getting the short end of the stick all the time. At what point do they say that this is completely unfair? Small businesses that sell to Amazon, only to have Amazon start to compete against them and cut them out. How that is not seen as an anti-trust problem is beyond me. I am all for capitalism, but there has to be rules and fairness."
Palzewicz will work to promote Wisconsin manufacturing, small and large. There needs to be a level playing field for all to participate.
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