Small business: why it matters more than it seems

The news talks about corporations and mega-projects, while small business — a cafe, a workshop, a tiny sole trader — seems insignificant. That impression is deceptive.

It is small business that creates most jobs and keeps cities alive. But it has a less obvious role too — it makes society freer. A person who has their own venture depends less on a single employer or a single handout; they have ground under their feet. A multitude of independent people is the very basis of a resilient society.

Small business is fragile: it can be crushed not only by competition but by bureaucracy, unpredictable rules, and corruption where every step requires a deal. Where starting a venture is hard and frightening, people choose not to risk it — and along with their un-started ventures, a country loses jobs, taxes, and energy.

My opinion: the best industrial policy often looks boring — it is simply “do not get in the way.” Give people clear rules and protection from arbitrariness, and small business will grow on its own, without slogans or subsidies.