At the start of 2012, Georgia struggles with many of the same problems as the United States. Georgia—the country that is. Both nations are currently challenged by the lack of balance between big business and small business, and the solution for both could also be the same.
According to data from the National Statistics Office of Georgia, 62 percent of Georgians are employed by big businesses. That leaves 23 percent working in small businesses, with the remaining 15 percent in medium-sized establishments.
The imbalance is due to a combination of factors, including the difficulty for local small businesses to secure loans and funding. This is a problem that American businesses are also facing, as the banks become stricter and more demanding.
Taxation has also been a problem for Georgian small businesses. Some economists believe in instituting a progressive taxation system or setting up a fixed fee system in order to solve this problem.
Economists are also saying that if these problems were solved, then it would greatly increase the success rate of small businesses. This would lead to a greater distribution of wealth throughout the country and greater opportunity for social justice.
The United States would also benefit from a greater distribution of wealth, as the majority of the nation’s riches lay with an elite few. Small business growth could also be the answer here, and the government should start to implement some new policies to encourage entrepreneurs.
To some degree, however, the growth of small business is in the hands of the everyday shopper. The decisions we make about where we spend our money matter. We must make more of a commitment to support small business, and go to the local guy even if we have to pay a little more than at the Wal-Mart.