Nowadays, big companies are continuing to grow even more. And it’s getting impossible to compete small businesses against big companies’ chain markets, cheap and wide range of products. So small businesses starting to bankruptcy. It has many disadvantages for customers especially in underdeveloped countries. Today I will discuss this problem and research solutions for such situations.
To start with, bankruptcy of small businesses lead to big companies start to monopolize the market. And without competition customers starting to suffer from high prices and low product quality. Also it has negative effects for economy of country even at worst it could lead to corruption within the government. Particularly in underdeveloped countries such as Azerbaijan, Venezuela, Turkmenistan there are only few companies that supported by government and they eliminating small businesses from the market that has a potential to growing and could decrease their market shares.
Therefore developed countries such as USA, Europe countries, Japan instituted many restrictions against big companies to monopolize the market and protect small businesses. For instance initiating new ministries about marketing, tax incentives and supervision to companies. If government catch any evidence from any business against competition, ministries charging them with high amount of fees. For example recently USA and Europe fined Apple with billions of dollars for monopolizing the market and high prices of their products. Or USA fined again Google because of user security breach and steal their information. Even also China give some penalties to Alibaba and Tencent companies.
Although tough restrictions, fines and government supervision, this big businesses continuing to grow. But that doesn’t mean there’s no hope for small businesses. Unlike big businesses, they could take huge risks and they can do things that have never been tried before. Because if big companies take huge risk and invest unique things they could lose loads of money and their reputation. So small businesses have nothing to lose and they can invest easily. If their attempt became successful they can gain big reputation of customers and a large sum of money for their future investigations.
In conclusion, while big companies continue to grow, it creates challenges for small businesses, especially in underdeveloped countries. However, there are ways to help small businesses survive. By learning from developed countries and putting in place rules that stop big companies from taking over and giving support to small businesses, these countries can create a fairer market. This will help both businesses and consumers, leading to a healthier economy overall.