The Future of Big Business – All For Some?

We just experienced the biggest wealth transfer in U.S. history during COVID-19 as millions of Americans lost their jobs. We stand at a staggering 43.6 million unemployed or under-compensated workers. Markets are rebounding with the spoils going to large corporations coming out virtually unscathed. I don’t think many of us are worried about the future of big business.

The swift recovery reflects the fact that the largest public companies  are emerging from the pandemic in stronger shape. Those same companies drive the indexes. But today’s stock market doesn’t represent economic health or societal health. It simply represents the future of big business playing a big role in America. Everything is “Big” – Big Tech, Big Auto, Big Pharma, Big Government, and so on.

It’s Time to Stand Up Small Business

That’s a problem for all of us. Startups and entrepreneurs are the birthplaces of innovation and fast incubators to get people back on their feet. So together, let’s revitalize and stand up small business.

I am not alone in stating that big business has had an unfair advantage during the early pandemic days. They were not all forced to close – so long as they had an “essential” grocery section. That advantage that created foot traffic for other sections throughout the store such as flowers, linens and small electronics. As a result, customers who would not normally frequent Walmart, Target, or Amazon did. But they did so based on lack of choice, not on free-market dynamics or capitalism. Again, the future of big business is not really in question. In fact, they are only getting bigger and amassing greater wealth

Some small businesses received federal aid; others did not. It simply wasn’t enough to offset local economies gyrating between opening, partially opening, closing, then reopening again.

We cannot go back. It’s too late to repair the devastation to those small businesses across travel, tourism, food, restaurants, hotels, and more. What we can do is recognize that big corporations have gotten too big, too powerful, and too wealthy. Pay disparities between executive leaders and front-line workers are massive and growing. While senior executives an average of 312% in inflation-adjusted wage growth, rank-and-file employees only saw 13% wage growth in the last 40 years. The pay ratio gap between CEOs, senior management, and front-line workers is massive and widening.

The Increasing Wage Gap Between Executives and Employees

I had a front row seat to the wealth gaps in my 30 years in Fortune 100 companies. During my 10 years in Human Resources where I led pay and benefit communications internally and externally, it was hard to miss.

If business and community leaders use our collective experience – much of which we learned from working at big organizations – to give a leg up to small businesses and incubators, we can help the economy overall.

Even before the pandemic, economic incentives to become an entrepreneur were dwindling. That data show up with fewer innovators over the last two decades. Add to that an increase in venture capital-based startups with founders and entrepreneurs giving up a large chunk of ownership equity.

While we can’t solve that without an overhaul in government structures and systems, each of us can make a difference. We will see faster and more equitable post-pandemic recovery if we each take time to mentor a talented solopreneur.

Mentor an Entrepreneur For Free

Or, roll up our sleeves not just for shots, but to perform an important part of their business plan. Consider creating free ads for restaurants or showing your local merchant how to connect to Affirm or Spotify.

When I joined the tech sector, our PCs, data servers, and Internet of Things were about democratization. Intel’s vision in 2010 was to enrich the lives of every person on Earth through communication and connection. Right now, that democratization is simply absent. Instead, we have a K-shaped economy where some businesses and families are doing great financially. Others are suffering crushing blow to their healthcare and emergency savings due to working in the small business sector.

Who is with me on assisting entrepreneurs achieve “the next big thing”?