Preview

What Is The Impact Of Large Corporation's Impact On Small Businesses After Great Recession

Better Essays
Open Document
Open Document
2270 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
What Is The Impact Of Large Corporation's Impact On Small Businesses After Great Recession
Large Corporation’s Impact on Small Businesses after the Great Recession

ENG122
Michelle Terashima
04/29/2013

Large Corporation’s Impact on Small Businesses after the Great Recession

The current economic environment caters to large retail corporations and curtails small retail businesses growth. Small businesses have only recently started to make some minor strides in growth. However the growth has been hampered in recent years because of large businesses unfair advantages that have taken place since the “Great Recession.” After the Great Recession, credit freezes from banks caused many dependent small businesses to shut down or downsize because much needed cash infusions were not available. Larger corporations across America including large retail corporations either had cash stockpiled, were bailed out, or still had access to credit lines. That is why due to recent economic conditions large corporations, such as Wal-Mart, AIG, and GM have been hindering the growth and development of the small retail …show more content…
Speaking about the financial environment the United States was in during that time. (Vanderbilt University 2009) There are still many arguments as to what exactly started the financial downturn in 2007 and 2008. The downturn resulted in millions of job losses and billions lost in private equity and liquid assets. Not to mention the almost immediate stop in the mortgage and home construction market. Americans slowed discretionary spending during the next following years. People were only buying necessities and as a result bargain shopped everywhere. Large retail companies had an advantage from multiple fronts. The most glaring was access to credit. Large companies had better access to credit than small businesses. Authors Judit Montoriol-Garriga and J. Christina Wang explain it like
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Us History Extra Credit. Roaring 20's
    • 762 Words
    • 4 Pages

    Us History Extra Credit. Roaring 20's

    In the roaring 20’s many American’s lived beyond their means. About 60% of the population lived at or below poverty level but this great new idea of lending people credit so that they could get things now and pay for them later. Many American took advantage of this. The car industry became the number one industry in the country as people started borrowing money. The problem with banks lending this money was that there were no safeguards in place. The banks had not yet learned the importance of security and collateral. They had also not yet learned the importance of limiting the amount of money they leant and to who they would lend to. During the Great Depression more than 9000 banks closed and millions of people lost their life savings. When the banks closed people became scared and stopped spending as much. The drop in…

    • 762 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Costco Case Study
    • 1118 Words
    • 5 Pages

    Costco Case Study

    As of 2005 research demonstrates that Wal-Mart was unstoppable and created strife for small local businesses and destroyed many small businesses. Wal-Mart is an unstoppable force and revenues of $247 billion with a growth of 15% a year. Wal-Mart is known to drive companies like Kmart to bankruptcy. Enter Costco that is the competitor that has shaken Wal-Mart’s reigning posture and caused a stir in businesses processes. Costco’s is approximately 30% the size of Wal-Mart and Costco competes against Sam’s approach to bulk sales. Sam’s has had quit the strife among battling for a top position. During the past 20 years Sam’s has had more than 5 CEO’s and has incorporated many strategies in order to try to gain control of top business command. All these ploys have been smothered by Costco’s array of visual space and prestigious options. Consider some figures. Sam's Club has 71% more U.S. stores than Costco (532 to 312), yet for the year ended Aug. 31, Costco had 5% more sales ($34.4 billion vs. an estimated $32.9 billion). The average Costco store generates nearly double the revenue of a Sam's Club ($112 million vs. $63 million), (Helyar,…

    • 1118 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Pros And Cons Of Dodd Frank Reform
    • 1644 Words
    • 7 Pages

    Pros And Cons Of Dodd Frank Reform

    The financial markets were in great shape and the housing market was booming. Two of the mentioned drivers of the economy were also the main drivers during the downturn. Financials institution were giving out substantial number of mortgage loans, thus creating “fake” money. This way major banks were able to project a healthy financial image, while in fact trillions of dollars were accounting for more than half of the money created by the banks. The housing and commercial market were creating a significant gap between the actual money in possession of the banks.…

    • 1644 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Inside the Meltdown
    • 490 Words
    • 2 Pages

    Inside the Meltdown

    Fannie Mae and Freddie Mac, the two largest mortgage lenders in the world, lost 60% of their stock value in July 2008. The government fired the management and the feds took over both companies. Then in the beginning of September, Lehman Brothers, another investment bank, had their stock dropping quickly. It was once again toxic investments that once made them money before, but now was responsible for their company plummeting. The government would not intervene with Lehman and they let them fail. It turned out that Lehman Brothers was even more interconnected than anybody thought. Because of Lehman’s bankruptcy, no one could get a loan and everything freezes. The meltdown had begun.…

    • 490 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Jcp External Analysis
    • 9202 Words
    • 37 Pages

    Jcp External Analysis

    “Though stubbornly high unemployment and continued uncertainty over the prospects for job growth will continue to dampen the outlook for industry retail sales growth in 2012, the retail industry will still grow at a rate faster than many other industries. This year, retail industry sales will rise 3.4 percent to $2.53 trillion*, according to the National Retail Federation – slightly lower than the pace of 2011, in which sales grew 4.7 percent. Many economists estimate that real U.S. GDP will rise approximately 2.1 to 2.4 percent. Over the last 18 months, retailers have been on the forefront of the economic recovery – creating jobs, encouraging consumer spending, and investing in America,” said NRF President and CEO Matthew Shay. “Our 2012 forecast is a vote of confidence in the retail industry and our ability to succeed even in a challenging economy. Retailers have played a key role in driving growth, but to continue this momentum we need Washington to act on proposals that will spur job creation and unleash the power of the private sector.” [ (Global Labor Rights, 2001) ] The retail industry will always be very profitable because this industry is extremely high in demand. This statement reinforces the fact that the retail industry is and will always stay saturated due to the necessity of clothes. There will always be rivalry and profitability for the retail industry because there is not just competition in this region or nation; it is based on a global market. As always, competition is important in long-term success because competition is what keeps industries adapting. With a necessity industry such as the retail industry, there will always be competition. This makes it somewhat difficult for a company’s long term success. Taking into account all the competition, there are few retail companies that will outlast their competition in a long-term setting. The retail industry is a Business to Consumer industry because they provide the goods and services…

    • 9202 Words
    • 37 Pages
    Good Essays
    Read More
  • Good Essays

    Dodd Frank Wall Street Reform
    • 222 Words
    • 1 Page

    Dodd Frank Wall Street Reform

    In 2008 there was a significant banking crisis that led to "the great recession," during which millions of people lost their homes, their jobs, and their standard of living. This disaster was caused by reckless behavior on Wall Street.…

    • 222 Words
    • 1 Page
    Good Essays
    Read More
  • Powerful Essays

    The Gramm-Leach-Bliley Act
    • 1796 Words
    • 8 Pages

    The Gramm-Leach-Bliley Act

    The financial crisis of 2008 is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. First signs of the crisis started to show in 2007 when the price of houses started to fall rapidly in the United States and then around the world. This financial crisis resulted in the failure of many large US financial institutions, banks to be bailout by the United States government, and the stock markets around the world were affected. One of the major issues leading to the financial crisis was the rising default on subprime lending. Large financial institutions were in completion with each other for revenue and market share,…

    • 1796 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Better Essays

    Dbq Great Depression
    • 894 Words
    • 4 Pages

    Dbq Great Depression

    America had experienced difficult circumstances before: a bank frenzy and discouragement in the mid 1820s, and other financial tough circumstances in the late 1830s, the mid-1870s, and the early and mid-1890s. In any case, never did it endure a monetary disease so profound thus long as the Great Depression of the 1930s. Market analysts have contended as far back as to exactly what brought about it. In any case, it's sheltered to state that a cluster of entwined components contributed. Among them were:…

    • 894 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Analyze Funding Opportunities for Small Businesses, Including the Role of the Small Business Administration (Sba). Then, Evaluate the Effectiveness of These Funding Opportunities in Light of the Current Economy
    • 8937 Words
    • 36 Pages

    Analyze Funding Opportunities for Small Businesses, Including the Role of the Small Business Administration (Sba). Then, Evaluate the Effectiveness of These Funding Opportunities in Light of the Current Economy

    Over 30 years ago, Congress set a goal of having a certain portion of all federal contracting dollars go to small businesses and established sub-goals for small businesses owned by women, socially and economically disadvantaged individuals, and service-disabled veterans of the Armed Forces, and for small businesses in Historically Underutilized Business Zones (HUBZones). The current government-wide goal for small businesses’ share of contracting dollars is 23%. Every year since 2006, the Federal government has missed the 23% small business goal and all but one of the sub-goals; the 2009 shortfall was greater than $4 billion. Removing barriers to federal contracting and increasing access for small businesses will go a long way in closing this gap.…

    • 8937 Words
    • 36 Pages
    Powerful Essays
    Read More
  • Better Essays

    Securing America and Protecting Civil Liberties
    • 1932 Words
    • 8 Pages

    Securing America and Protecting Civil Liberties

    In all aspects, the financial crisis of 2008 – 2009 has and is affecting millions of Americans. One key factor to the financial crisis in the American economy has been greed by not only the government, but businesses and individuals. Our federal government from the President, Congress, the Secretary of the Treasury, and last but not least, the Federal Reserve, has each had a contributing factor in allowing the economic crisis to happen.…

    • 1932 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    BIG BUSINESS EFFECT ON AMERICA
    • 1554 Words
    • 5 Pages

    BIG BUSINESS EFFECT ON AMERICA

    and for long hours, but only a handful of people reaped financial reward. George Rice…

    • 1554 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Thoreau and Dependency
    • 771 Words
    • 4 Pages

    Thoreau and Dependency

    Leading up to the Great Depression, the idea of individualism had taken root regarding large corporations and businesses. Each corporation pursued methods that would be in the best interests of themselves and their capital. Because of this, when the Great Depression broke out in 1929, many corporations cut back severely…

    • 771 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    What Caused The Great Depression Essay
    • 1220 Words
    • 5 Pages

    What Caused The Great Depression Essay

    Second, the economy had a poor corporate structure; “New holding companies were financed by credit.” Credit was a poor structure to base a company on because “Buying on credit is when one gives a down payment on a product to recieve it, then pays small amounts over a long period of time to pay it off instead of paying the full price up front,” according to the article “Easy Credit” on US History The Great Depression. When people took advantage of credit to buy luxurious items and could not pay it off they went into debt. Third, the economy had a bad banking structure. This weakness is known as the Monetarist Explanation by Jean Caldwell and Timothy G. O’Driscoll in their article “What caused the great depression?”…

    • 1220 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    America During The Great Depression
    • 708 Words
    • 3 Pages

    America During The Great Depression

    The Great Depression devastated an economy that was fighting to make its way back to the top, after a war that crippled the economy. The economy was booming, the jazz age started, and women became more liberated then ever. Americans were busy buying cars, appliances, and putting their money into the stock market. This was done with credit, businesses were booming, they made huge gains from 65 percent from the mechanization of manufacturing, the average worker’s wages had only increased 8 percent (PBS, 1). People during this time were not aware of the irreparable consequences of making purchases with their credit. People were satisfied with this new materialistic…

    • 708 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    How Did Roosevelt Solve the 1930's Usa Economic Crisis?
    • 2164 Words
    • 9 Pages

    How Did Roosevelt Solve the 1930's Usa Economic Crisis?

    When F.D. Roosevelt came to power, he faced one of the hardest presidencies in history. Following the economic boom of the 1920’s, America was thrown into turmoil after the Wall Street Crash in 1929. Overproduction and debt were the main problems. In the cities, expensive goods such as cars, fridges and radios were being manufactured at an overwhelming rate. In the countryside, farming was made easier by technology so farmers over produced goods, to increase profit, but the result of this was that prices were driven down by a fall in demand. Now farmers faced bankruptcy. The banks also had a crisis on their hands. People had been investing during the boom and making huge amounts of profit. A lot of this was done on credit - people paying with borrowed money. This meant that thousands were in debt, and when the Stock Market crashed, the banks wanted the loans back, and people could not pay so banks were also broke.…

    • 2164 Words
    • 9 Pages
    Good Essays
    Read More

Related Topics