This is the third of our blog posts connecting the basics of the economy to small business. We are taking the popular series of basic economic videas called ‘We the Economy’ and connecting them to the way your small business (or prospective small business idea) operate. Over the next twenty or so weeks we are going to take a regular look at the very basics of our complex global economy and once a week we will present one of the videos from the series and try to add a little context, especially for anyone who is thinking about taking a tiny step toward being a more direct and powerful cog in the enormous economic machinery by starting their own business.
First, go watch the video below. Hang in there, because about halfway through it takes a surprise turn with a visitor from a character known as the Neighborhood Hero. There are several takeaways for the small business owner or prospective smalll business owner. On the surface this video is about competition but it rapidly moves on to government regulation of business. FIrst we see the positive aspects of government regulation, then the negative. Government regulation of business is a reality. And while it is very easy for a small business owner to look at it all as interference and a drain or even a tax on profitability, the reality is that there are good reasons for many government regulations from teh obvious such as protecting public health through to the perhaps well-intentioned but not necessarily effective regulations around fair trade and levelling markets.
Nothing does so much to highlight this for small business owners in particular as the contrast between campaign promises around small business and the resulting regulatory changes post election. All parties fall FAR short on delivery against the promises they make.
The reality of you are a small business owner is that you have to comply with regulation. Just do it. Then fall back on the true message of this rather surreal morality tale. Focus on your business and delivering quality and value to your customers. That more than anything else will serve you well.
As Werner Herzog said, if all you put out in the world are spikes and forces of destruction, then that is what you can expect to get back in return when winter comes for you. So think positively. If you want to take that step towards entrepreneurship for yourself, then take a look at our previous episodes, 'Cave-o-nomics', 'Supply-and-Dance' and 'GDP Smackdown' and also check the links below for more information about getting started on your own business idea.
How You Compete Matters More Than Winning Or Losing
10 Ways Small Business Can Compete in a Big Business World!
Compete on Value, Not Price