The Economist's Digest30

Leaders
Big is back
Originally from The Economist August.29th, 2009

Summary:

Few years ago, big companies have many problems and hurt a lot in the financial crisis last year. However, after government’s claim that some companies are too big to fail, these big companies’ advantages are back…
Big companies are always there. Small ones and deregulating innovation are not always best, and some accounting laws give not only big companies but also small ones a big burden. Now many industries discover advantages and disadvantages of being big, such as having more money to do research or having bad outsourcing partners.
On the other hand, companies emerged have discovered how to be entrepreneurial when being big. Some may worry about the return of the mighty. Yet big is not always bad, the same that small is not always good. Big and small companies should co-exist and co-flourish.
The return of giants could be good for global economy. Nevertheless, some points should be emphasized. First, the most successful big firms focus on their core business. Second, governments shouldn’t support failed big ones; they should make it more easy for companies to start and grow big.

My opinion:

International entrepreneurial companies have being more and more, and these companies have more power and resources. Will these companies grab more resources? Certainly they will. That’s why governments around the world should help small companies, whether they’ll grow big or not, since it’s very important for small and big companies to coexist. On the other hand, the management education is changing too. More and more universities and colleges have courses about international entrepreneur.