The Future of Business
When it comes to this time of the year many of us like to look back and reflect. Instead I want to look forward at what I see as the future of business. According to Matt Ridley in his book the ‘Rational Optimist’ big companies have less and less of a future, a trend that I already see happening. Ridley states the size of an average American company is down from 25 employees twenty-five years ago to 10 employees today. Somehow I don’t think this is just because of the cut backs due to recession.
Similar things are happening in Canada. According to the Government of Alberta 2011 Small Business Profile 96% of the businesses in Alberta are small and of those 93% have 19 or fewer employees (63% have 1 to 4 employees). Across all sectors in Alberta at least 88% of businesses are small. The report goes on to suggest that the only growth that was generated by businesses in Alberta from 2005 to 2010 was by that 93% that employed 19 or fewer people.
Ridley suggests “Tomorrow’s largely self-employed workers, clock on to work online in bursts for different clients when and where it suits them”. He isn’t the only one that is suggesting that. Daniel Pink has gone one step further and written a book called Free Agent Nation: The Future of Working for Yourself. Chris Lauer, from Business Week, in his review of the book states; ‘Free Agent Nation captures the shift in economic and social power from the organization to the individual.’
In small business reputation and integrity are crucial to survival. If the current state of the world economy is in part due to fraud and corruption does it not make sense that all of us are looking for a refreshing change from ‘big business as usual’?
The important of specialization (see blog: Productivity through Specialization) combined with the ability to work from anywhere thanks to the internet allow businesses everywhere to be very productive, adaptable and flexible, especially small business. I am very much looking forward to business in the future and feel blessed that I can participate on the leading edge of this new economy today.
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Posted on December 28, 2011, in Business Productivity, future of business, small business and tagged Business, Free Agent Nation, Matt Ridley, Rational Optimist: How Prosperity Evolves, Small business. Bookmark the permalink. Leave a comment.