Double-Edged: Small Businesses & Technology

As part of their “Moving Forward” series, which offers advice to small business owners on technology, mentorship, productivity, and growth, Business Insider posted an article on small business and technology where a number of small business owners shared anecdotes of the ways that technology had impacted their work.

They suggested that, “For the 23 million small businesses in America, technology is key to leveling the playing field with big corporations.”

In their comments section, commenter TE had this poignant thought:

It could also be that technology disadvantages small business. Which is why small business has been suffering. Technology enables economies of scale – which is the forte of big business.

Small business may not want the playing field leveled. They may only thrive because of the bumps in the field that they can hide in. Same thing with US employees who don’t need the competition with someone overseas who has a cost of living 1/10 as much and can take take lower wages.

Bottom line – technology enables efficiency. Efficiency gets more so with bigness or economies of scale. Hyper efficiency leads to inequality. That is what is really happening out there.

Like most things, the truth is likely somewhere in the middle, but something about both perspectives resonated with both us here at AGi.  We’d love to hear the thoughts of our readers if you’d like to share them.
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