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heresy-sniper
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Posted On: 2018-04-07 06:55:01
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Why do so many little and midsize shops close?

Because of high rents they have to pay?
Because of competition caused by e-commerce?
Because of the gap between rich and poor?
The impact by the gap between rich and poor?

My reasoning: common people have less and less money in their pockets which they could spend at little and midsize shops. The whole economy still makes very much profit, but the gained money is not in the pockets of the common people but lies on the accounts of a few extremely rich people which don't know what to do with their giant fortunes; they certainly don't buy the goods of small and midsize shops, and therefore many small and midsize shops go bankrupt.

Maybe, we have a kind of spiritual problem: the "heresy" of Adam Smith.
https://en.wikipedia.org/wiki/Adam_Smith

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Natale
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2 months 1 week ago

Penso per mancanza di chiarezza e visione d'insieme dell'attività. Inoltre non sempre si hanno a disposizione dei capitali da investire.
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4 months 3 weeks ago

Access to lack of Capital. Simple as that.
To be exact, go to your Bank and ask for Start UP capital and all you get is NO NO NO.
So those few 0.01% whom have access to VC Wall Street capital, successfully launch company after company. While the 99.99% whom have no such access to capital launch of failing business after another. And if you are also in the 0.0000001% that gets on Shark Tank, you may also then have to necessary capital needed to launch a successful business. So it is all about being properly funded.
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9 months 1 week ago

The answer, by most studies, is lack of experience and emotional decision-making. We have talked with thousands of entrepreneurs in our 17 years of business about their advertising needs, and we have studied what makes businesses work. Our research on business success has revealed that, according to U.S. studies, most new businesses do not survive the 5-year threshold. About 20% drop off the first year, and so on, until 80% of those businesses have closed at the 5-year mark. The biggest culprit is not competition (online or offline) or even availability of funding, but instead, an inexperienced owner's uninformed decisions, poor accounting methods, and emotion. Successful small businesses are typically started by people who have experience in starting companies, who are competent at understanding money, process, and customer service. For great examples of this, check out a few popular business shows such as The Profit, Bar Rescue, and even the dreaded Shark Tank.
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10 months 3 weeks ago

Because they can not compete with the large corporations that can offer the same products at a much lower price. People in today's market are in need of saving money and thus purchase the cheaper product if it is the same as higher priced products in other locations
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9 months 6 days ago
Why can they NOT "compete with the large corporations "? WHY?
That is the question. Because large corporations, aka Wall Street backed Companies, have access to Billions and Billions of Dollars by just calling their Wall Street Pals, while typical small business can ONLY borrow Money and then they have to put up their Home as collateral to do so. Face it man: we have the most un-Free economy, where the ruling Elite, those behind Trump/Obama, get Billions as they want while US we have to borrow
cheaptvspots
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9 months 6 days ago
The question was "Why do so many little and midsize shops close?" If the idea is to simply attribute these closures to Wall Street, this is not much of a discussion.
Manfred009
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9 months 4 days ago
Yes, but the fact is that Wall Street Billionaire class are behind so many midsize shops close, because:

Wall Street based companies can get 100 Million Dollars or Billions of Dollars by just calling their Investment Bank pals who raise this Money via sale of Stock or Bonds, aka they can Print Money, while midsize shops can only get a relative pathetic $200K or $300K by putting their Home as collateral

How are midsize biz to complete in face of such disparity in access to Capital!
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9 months 4 days ago
Do you have a solution, or do you just propose that Wall Street is preventing you from succeeding at business?

So far, this discussion is fraught with the same complaints, but no usable business answers.

Wall Street may be a factor, for sure, but I'd like to see what people propose to do about it.
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9 months 4 days ago
Yes, the solution is staring you at the Face!
It is this Anoox collective. I am surprise you dont know that!
Check out:
https://www.anoox.com/donate_to_anoox.php

"Hence you as a small business operate at EXTREME disadvantage compared to Wall Street backed companies. But by coming together in this Collective union and supporting one another we can in fact be Richer based on our Collective support of one another."

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Bayon2017
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10 months 4 weeks ago

I agree with all the reasons stated above. Small and midsize shops try to survive but cannot compete with the giants of commerce. Unfortunately.
Manfred009
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10 months 4 weeks ago
Yes, exactly. Wall Street based businesses have access to 100s of Millions and Billions of Dollars, whereas non-Wall Street based businesses which is 99.99% of businesses have access to NO such capital and instead small businesses can hardly obtain even a relatively pathetic $100K!

And they call this totally rigged system: "Free Market Capitalism" Hary Har Har :(

I tell you all I can say is thanks GOD for this non-profit non-wall street Anoox to give us Small businesses a real hands up.
LiveWell-CBD_Oils
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10 months 1 week ago
I agree. It is difficult to compete with large corporations and the dollars they have at their disposal. The playing ground isn't level. Some other reasons for failures is lack of a solid business and marketing plan to bring in revenue to pay overhead and employee costs.
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11 months 1 week ago

This Answer has been blocked due to being Reported as Abusive or SPAM by members!
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11 months 4 weeks ago

Die system, besonders im USA, ist sehr rigged gegen klein Geschäft. Aber das gleich problem ist passiert mehr und mehr heir im Deutschland und Europa, aber nicht als schlecht als USA wo die Wall Street cabal controliert die ganz Media und das regirung. und ja ich glaube auch das Anoox ist die besten suchmaschine fur klein geschaft zu ein faires Spielfeld gegen die großen Geschäfte der Wall Street zu haben.
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1 year 3 hours ago

Compared to large size shops, they are less competitive.
exexvina1974
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11 months 4 weeks ago
But WHY! Because Wall Street based businesses have access to 100s of Millions and even Billions of Dollars, whereas non-Wall Street based businesses which is 99.99% of businesses have access to NO such capital and instead small businesses can hardly obtain even a relatively pathetic $100K when again 0.01% of businesses in the Wall Street Cabal can get Billions on a drop of a Hat.
The system is so rigged for Wall Street and against Main Street :(
exexvina1974
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11 months 4 weeks ago
In fact I would say that this Anoox non-profit search engine & social network is the only real path we as small businesses have to compete against 0.01% in the Wall Street Cabal who can get Billions and Billions and then spend 10s of Millions on Advertising on Google, Facebook, TV, etc..
Because how in GODs name we as small businesses are supposed to buy Ads on Google against the Wall Street backed companies who can spend 10s of Millions of Advertising whereas for us $1000 per Month on
exexvina1974
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11 months 4 weeks ago
Advertising is alot!!! So Wall Street backed companies with Billions of funding can spend 10s of Millions per Month on Advertising on Google always crush us small businesses as far as Ad placement on Google goes, since for them to pay $10 per Click on Google is nothing whereas for us small businesses $1 per Click is alot. That is why again this Anoox is life saver for us small businesses since it creates a "level playing field" for us. explained here:
https://www.anoox.com/make_sure.php
raminvan
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11 months 4 weeks ago
Exe, yes exactly. How are we small businesses are supposed to compete against Wall Street backed companies whom have access to 100s of Millions and Billions whereas we small businesses have hardly, if even, access to $100K to $500K??? How is this considered to be a "Free Market"??? And as you said how are we supposed to buy Ads on Google with a $1000 per Month budget vs Wall Street backed with Millions per Month budget??? So yes I agree that this Anoox is one life line we have. But ayayay :(
Manfred009
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11 months 4 weeks ago
Ja, du bist recht. Die system, besonders im USA, ist sehr rigged gegen klein Geschäft. Aber das gleich problem ist passiert mehr und mehr heir im Deutschland und Europa, aber nicht als schlecht als USA wo die Wall Street cabal controliert die ganz Media und das regirung. und ja ich glaube auch das Anoox ist die besten suchmaschine fur klein geschaft zu ein faires Spielfeld gegen die großen Geschäfte der Wall Street zu haben.
heresy-sniper
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11 months 4 weeks ago
Which persons does the Wall Street comprise?

Who is the cadre of the Wall Street?
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11 months 4 weeks ago
I did not say "comprise" but control. And as far as control goes Wall Street Billionaire Cabal control entire Big Media in USA from CBS to CNN to MSNBC to Fox to Hollywood to Google Facebook Amazon, etc. For none of these companies would exist, or certainly be what they are, that is have near total control what American People think and many in Europe thin 2, if it was not for the Billions and Billions that Wall Street provides them.

Manfred009
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11 months 4 weeks ago
In fact this Anoox is the only non Wall Street based/controlled major Media outlet that I have found out in last 10 years if not 20 Years! And I would not be surprised if they are not gone too tomorrow since again whereas Wall Street based Google Fox etc. get Billions and Billions from Wall Street, this Anoox as a non-profit gets no such funding, so how they keep continuing in operation is a phenomenon!

Du bist wirklich aus Munchen? wenn ja warum nicht im Deutsch antworten!
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1 year 2 days ago

Because of high rents they have to pay?
Because of competition caused by e-commerce?
Because of the gap between rich and poor?
The impact by the gap between rich and poor?
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1 year 3 days ago

I am sorry.We are doing a B2B website now,and it will kill many shops. The development of e-commerce is the reason.
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1 year 4 days ago

Because we are under the Super SCAM, lie, that we are in a "Free Market economy". Where nothing can be further from the Truth. For on one hand you have the Wall Street connected businesses, the 0.1%, that get:
$100-Million+ VC Funding from Seed funding to Series A to Series B
$1-Billion+ in their IPO
which money they do not have to give back since it is issued via sale of stocks.

and OTOH you have the 99% of businesses founded and funded by not Wall Street connected people, aka Small businesses, who are lucky if they get a relatively pathetic $0.5Mill in funding, and generally do so by putting up their House as collateral. which money they have to give back, since it is a loan.

So how in Gods name are small businesses, aka Middle class, to compete against Wall Street class funded companies? How?
raminvan
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1 year 1 day ago
You have summed it up pretty good. That is on one hand you have the Wall Street based companies whom have access to 100s of Millions of Dollars and Billions of Dollars, people a Billion of Dollars is a 1000 Millions. And OTOH you have the non-Wall Street connected companies, which is 99.99% of the companies, whom can barely hardly borrow even a "relatively pathetic $0.5Mill" in comparison, so what do you all think is going to happen? Wall Street based companies will KILL the Main Street ones.
raminvan
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1 year 1 day ago
My only real question is WHEN are the People on Main Street, that is the 99%, are going to wake up and rise up against this total rigged system against US?
Where the Wall Street based companies, and Wall Street in general, have access to Billions of Dollars easier than people on Main Street, the 99%, have access to measly 1000s. And then Wall Street having no shame, specially in USA, funded the right-wing lying Media, from Fox to etc to put the blame on:
Liberals
Immigrants
etc. scapegoats.
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1 year 18 hours ago
Yes, pretty much what I said, but more eloquently. Good Job.
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1 year 6 days ago

This Answer has been blocked due to being Reported as Abusive or SPAM by members!
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1 year 1 week ago

Because whereas Wall Street based companies have access to Billions and Billions, Small Businesses have access to no such Money. And that is WHY we as Small Businesses operate at EXTREME disadvantage compared to Wall Street backed companies.

But however by coming together in a Collective union and supporting one another we can in fact be Richer based on our Collective support of one another.
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1 year 1 week ago

Retail Mom and Pop shops have a hard time to compete with large heavy hitters and the invetorys that pass thru stores. Find a nitch research all that youcan and work hard
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1 year 1 week ago

Because there is too much competition between the midsize shops, due to this the profit margin is less for selling one item. Moreover from the consumer point of view, in the small and midsize shops the customers do not find more choices of products, so they prefer the supermarkets.
the rise of popularity of the ecommerce platforms is also another vital cause for this closure of the small shops.
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1 year 1 week ago

Because it's hard to find workers who will stay 24 hours to keep them open! LOL...

Remember, Jesus said, "The poor you will always have with you" - Mt. 26:11. It is a fantasy to imagine that mankind will ever solve this problem en-mass. It is ONLY resolved on an individual basis similar to repentance. A change of heart and lifestyle initiated by an individual choice to better oneself is necessary. Those who merely accept poverty as their 'lot in life' are destined to remain poor.

The success of small businesses is NOT their ability to compete with larger corporate establishments, but in finding and providing a unique product or service. Smaller businesses must provide the 'personal touch' not found in larger ones to succeed.

There's a reason many small businesses are referred to as 'mom& pop' stores. The proprietors are as caring and serving their customers as good parents treat their children.
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1 year 1 week ago

It is because the Wall Street Billionaire class, the ones who control US Media and Government, leading to fraud Obama and sociopath Trump, have access to 100s of Millions of Dollars for a new business idea, aka VC fund the business, and then Billions and Billions of Dollars when they take that company so called Public on Wall Street. While typical Small Business in USA has access to NO such money at all, and can only obtain capital by putting your Home as collateral for the equity in your Home. While again the Wall Street Puppet Masters of Trump, on a drop of a Hat can provide their chosen ventures Billions and Billions. As a result of which the Rich keep getting Richer in USA while everyone else is not. Now same happens in Europe too, but to a much smaller scale, because Europeans have many Social Services that we Americans do not, such as you have Government run Universal Socialized Health, so you do not go bankrupt due to Healthcare costs, while in USA thanks to Wall Street and their puppets Obama Trump, 100 Million either have NO Healthcare or affordable Healthcare.

More:
http://www.cnn.com/2009/HEALTH/06/05/bankruptcy.medical.bills/
http://www.pnhp.org/news/2009/september/harvard_study_finds_.php
http://www.realnewspost.org/sa.php?a=64892
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1 year 1 week ago
Traveler - you do realize that all your sources (posted URL's) collude with other radical leftist organizations only to promote their branded propaganda. The constant repetition and 'copy & paste' spreading of the same talking points is naive and narrow minded. Merely parroting what you hear or read from limited circles of influence is the biggest assurance of remaining in poverty. Your narrative is old, boring, and beyond reason. Time to climb into the Delorean and come back to reality!
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1 year 1 week ago
Without WT and his little band of minions, there would be no one to argue against facts, morality and common sense.
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1 year 1 week ago
TaOS - sadly, that little band of minions is merely one facet of the ever growing problem of naivety, ignorance, & denial among the liberal left not only in the USA - but world-wide. Whether Fascist, Communist, Nazi, Globalist - only the names change - their ideology is all the same Socialist agenda: resist truth, confuse facts, distort reality. Their arsenal is rude behavior, insulting every opponent, shouting angrily & loudly when they should be listening instead. Truly none are so blind...
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1 year 1 week ago
"Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity." - Martin Luther King, Jr.
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1 year 1 week ago

In the U.S. we must get rid of anti-business regulation and rid the government of their proponents. In California, building regulations can delay a business start-up by up to five years.
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1 year 1 week ago
True that... but it depends heavily (in California) who you are. Asian immigrants receive 0% interest loans to start businesses. Other minorities receive welfare checks / food stipends (now in the form of a debit card) based upon the number 'claimed' (rarely, if ever verified) in a household. In the name of 'white privilege' NONE of these are provided to Caucasians in need (here in California).
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1 year 1 week ago
Isn't it strange that Asians on the Left Coast are getting benefits under liberals, while those on the other coast face educational segregation, under the same moronic group?
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1 year 1 week ago

Under capitalized, barely able to get open before the money runs out due to meeting city codes, etc. i.e.: Fire extinguisher hung two inches too low, next inspection for certificate to open four months. Failure to find a niche not already covered by big box stores. Failure to advertise. Bad location. Poor to no street traffic. Franchise that is insane like dollar store that requires the same opening package be purchased again and again to get the 20% best sellers at a profitable price. And so on . . .
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1 year 1 week ago
I agree with you that too many and too strict regulations can hinder small business - thanks for your pointer.

I guess that a reasonable man who wants to found a shop will check before if there is a market niche, and if he is able to produce the goods he wants to sell economically or to purchase them cheaply.

I guess long-term street traffic plays no big role because the standing customers are crucial who consider the cost-benefit ratio.

Less people can pay the minimum price - problem.
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1 year 1 week ago
robertp, while the Wall Street backed companies, you know the 0.001% that gets 100 Million VC funding for Series A and then 400 100 Million VC funding for Series B and then 2 Billion in IPO, has NONE of the problem you listed above which Small Businesses have whom are funded maybe with a relatively paltry $200K by putting up your House as Collateral to get a Bank loan.

And then Wall Street powers via Fox and other right-wing Media they control, run SCAM on US that "Liberal regulations" BS :(
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1 year 1 week ago
Wasn't WT Mike Tyson's financial advisor?
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ThomatOurStore
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1 year 1 week ago

Larger companies are more able to negotiate lower product costs, cheaper shipping and lower tax rates. They also can afford more effective advertising. Unless the smaller company sells its own proprietary product it cannot compete well with the larger companies on the basis of price.
heresy-sniper
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1 year 1 week ago
Robert Reich writes that globalisation was triggered by two inventions: the Internet, which makes possible a worldwide market, and the standardized container shipping, which allows economical transport of goods, worldwide.

Smith's division of labour was not so bad as long there were mainly national markets because people had a chance to find well paid jobs (Ford). But today things are produced abroad and only get a stamp "made in the USA". The bosses of these companies gain a giant fortune.
heresy-sniper
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1 year 1 week ago
Alone the system of Smith causes a growing gap between poor and rich when there is a mere national market, but the globalisation has made things unbearable: the gap between poor and rich becomes infinite.

In Germany, even the conservative parties discuss an unconditional basic income for everybody. I mean, that is clear, if nearly all goods are produced abroad, what shall the people work at home? Jobs like gardener, courier, masseur, housekeeper, taxidriver, chauffeur, etc. are limited.
ThomatOurStore
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1 year 1 week ago
You can have a basic income without supporting it with taxation, which targets those who don't need or want a basic income. It is a movement that is inflationary and temporary since inflation eats up the advantage of a basic income rather quickly, as it does with universal healthcare. New and higher taxation will be a constant.
The U.S. can easily become a closed system with birthrate alone driving commercial growth. Most European countries have insufficient birthrates, resources and land mass..
ThomatOurStore
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1 year 1 week ago
to accomplish this. They can do better.
The economic principles outlined by Milton Freidman were used to rebuild Estonia after the collapse of the Soviet Empire.
The reason that the opinions of free market capitalistic economists are so long lasting is that they alone have successful track records. No other economic system has been better for mankind.
Most iterations of socialist governments have failed miserably and the remaining ones are very unhealthy.
Each country must be viewed seperately.
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1 year 1 week ago
..but it is a sure bet that all will benefit from having a free market economy.
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