Mark Deo says in this recession, small business owners will not be getting much help from the federal government, so it’s up to them to fend for themselves in order to survive.
“As in the past, the rescue will come from the very entrepreneurs that exist today. Bad part is the low-performing players unfortunately are going out of business. What that’s doing though, Ed, it’s really making the strong stronger. It’s allowing them to capture greater market share. It’s putting a lot of great people on the street, Ed. A lot of the small business people are kind of getting their hands on these talented folks that they couldn’t get before.”
Deo says, as people found out during the Great Depression, not only can your business survive an economic downturn, it might come out of it even stronger than before.
“Absolutely. The depression produced what I like to say, our parent’s generation and maybe in some ways, our generation. You know, let’s really kind of be frugal and let’s watch our dollars and our pennies, and stuff. And I think that’s happening today. That was the result of the depression, it’s happening now out of this recession. Also what’s happening is that I think there’s some great new business models that are being started up. They’re operating that business a little closer to the street.”
There are more than 30 million small businesses in the U.S., generating more than $6 trillion of annual revenue, accounting for more than half of the nation’s GDP. Companies with fewer than 20 employees account for 90 per cent of U.S. firms, responsible for more than 97 per cent of all new jobs. Deo is the author of The Rules of Attraction.
Ed Mayberry, KUHF Houston Public Radio News.