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How Large Companies are
Less then 1% of US total but it Seems like They Have All The Power

 



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In this episode of Money Creation Explained we are going to go cover How Large Companies are Less then 1% of US total but it Seems like They Have All the Power.

In the United States, a large company is classified as having over 1 billion in revenue. These companies usually employ 1,000s of employees and have ample capital and resources to grow. They also usually have better economies of scale, efficiently, and bargaining power with suppliers and consumers. As a result of the size and market dominance, they attract investors, workers, customers, suppliers, creditors, and government support. They have the resources to influence society with their advertising budgets, press releases, profit and loss statements, their newest products, lobbying and the like.

When large companies go public, Initial Public Offerings (IPO’s) occur. A large percentage of their company is sold off to the public. These shares are then bought up by many entities who are both individuals and corporate investors. Once a company has gone public, it is very hard to maintain the original mission by its founders. There are many new shareholders with voting rights, and the main reason to buy shares in a company is to maximize return on investment. In this attempt to satisfy shareholders, the company's main concern will be to grow revenue at any cost and often at the expense of the quality of the product or service.

Despite all this, small business accounts for over 99.9% of all firms operating in the US and employs over 46% of the entire workforce also. At the time of this video, there are over 33 million small businesses in the US. Small businesses also account for almost 45 percent of all economic activity in the US, and produce 16 times more new patents per employee then large firms do.

Despite providing their communities with a large number of benefits, small businesses do not get the same government support as large corporations. There are many tax breaks, incentives, and government money offered to large corporations that do not exist for small businesses. Businesses always need capital to grow, expand, and increase cash flow. IOU Notes offers alternative forms of loans and credit to businesses to help them succeed.

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