The Australian Small Business Blog

Monday, February 10, 2014

Corporate Wannabes or Rent Seekers?


by Dr Greg Chapman

As a small business owner, you sometimes can only look and wonder at the activities of some large businesses, who are really successful in obtaining and using other people’s money. The recent World Economic Forum at Davos (Disneyland for crony capitalists) was a perfect illustration of this. The following graph from the Economist is an eye opening view on who goes to these events.



The share prices of the regular corporate attendees show they are by and large a pretty lack lustre group. The best and brightest seem to stay away. Which begs the question, why do the others attend? Are they corporate wannabes or rent seekers looking for special deals and influence?

Don’t get me wrong, I’m a big fan of capitalism, it’s just crony capitalism is not the same as capitalism. The cronies seek special rules that advantage themselves over their competitors and look for handouts. They promise to support politicians in return for favours to the detriment of the rest of the population.

Of course you might counter that this is just a small business whinge, but I am sure if you talk to the best businesses who avoid Davos, I suspect you will find they will agree with this sentiment.

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Dr Greg Chapman is the Director of Empower Business Solutions and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.



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