How Big Business Is Fueling Small Business Growth
Thank you to Spark Business from Capital One for sponsoring this feature highlighting small business.
Some in the Los Angeles area have voiced opposition to the location of a Wal-Mart just north of them, in the Burbank area. Fearing a financial hit on small businesses, many residents are calling it a battle of “David versus Goliath”. But what if little David and big Goliath could actually get along, and in the process create a supportive relationship? According to Hector Barreto, Chairman of The Latino Coalition, this is exactly what is going on, in many other cities.
The Latino Coalition represents the interests of Latinos nationwide, by communicating their unique cultural and economic needs to government and business leaders. Barreto sees the addition of the Walmart store in Burbank as an opportunity for Latinos, who continue to suffer under a 14.7% unemployment rate in California.
“When it comes to economic growth, small businesses and large companies actually support each other, said Barreto. “Indeed, the entrance of a large retailer like Walmart into a new marketplace is the key to helping many local vendors to grow.”
Barreto once served as Administrator for the U.S. Small Business Administration. “During my time at the SBA, I learned that small businesses cannot flourish without a strong and healthy free-market that is friendly to companies of all sizes.”
Citing a study by independent business analyst firm Dun & Bradstreet, Barreto highlighted how Walmart spent over $25 billion last fiscal year on maintenance supplies and other business-related products, much of it from local, smaller vendors. How many small to medium business-related jobs did this amount to? According to Dun & Bradstreet, just over 280,000. And each of these gainfully employed people spends their money in businesses of all sizes - another small business opportunity.Continued on the next page