n our world today there are two basic types of businesses. Businesses that are locally owned and corporations. Corporations first appeared in America around 1870 when men with men like Andrew Carnegie and John D. Rockefeller forever changed business in the United States. Before this time, locally owned or small family businesses were the norm. In today’s business world, however, corporations far outnumber small businesses. There are many differences between the two such as government assistance available, and perhaps the most important difference of how they impact the economy.
Entrepreneurs are hardworking, determined individuals. They have to be in order to start their own businesses, and continue to be in order to make that business thrive. …show more content…
Corporate welfare is a term that describe financial aid, provided by a government to corporations. (Think by Numbers) An example of corporate welfare is a subsidy, however not included under this term are the tax breaks they receive or the government contracts they are granted. (Think by Numbers) An estimated $92 billion were put towards corporate welfare in 2006 alone, making up 5% of the federal budget. (Think by Numbers) In comparison the same year the federal government devoted only 3% of the total budget to social welfare programs, such as food stamps, totaling only $59 billion. (Think by Numbers) Some of the biggest, most well-known companies in America receive corporate welfare. The eight biggest recipients according to a 2014 report were Nike, Royal Dutch Shell, Fiat Chrysler Automobiles, Ford, General Motors, Intel, and Alcoa. The company that received the largest amount of corporate wlelfars, was Boeing at $13.18 billion. (Becker) These subsidies come from not only the federal government but the state level government as well. (Becker) After reading this, it’s no wonder why our national debt cannot be balanced. Corporations are more favored by the government because they can do more in return. When companies profit hundreds of thousands, if not millions, of dollars a year it’s hard to understand why our government is handing them …show more content…
(Small Business Saturday) The economic effects of locally owned businesses can be felt at home, in our own communities, whereas the profits from corporations like Wal-Mart only return a small portion to the community and the majority of it goes to make someone else rich. For example, if you spend $100 at a local business, on average about $68 will stay in your community and go to things like community services, local taxes, or donations. The $32 that does not stay goes to import supplies. In contrast when $100 is spent at a corporation only $43 stays in the local economy and the other $57 leaves. Besides the obvious answer that money spent locally stays local and boosts local economy there are a number of other reasons why small businesses benefit us more than corporations. (Small Business Saturday) Small businesses are threatened by big corporations and their vast resources but surprisingly the number of small businesses have increased by 49% since 1982. (Grasshopper) According to the Small Business Administration small businesses have created 8 million jobs since 1990 in the U.S. (Small Business Saturday) In addition to jobs and money for local programs and economy, small businesses help to boost community well-being. One major benefit to a community that has several small businesses as oppose to a few corporate businesses is that have local owners who live in the community know what’s in the best
Entrepreneurs are hardworking, determined individuals. They have to be in order to start their own businesses, and continue to be in order to make that business thrive. …show more content…
Corporate welfare is a term that describe financial aid, provided by a government to corporations. (Think by Numbers) An example of corporate welfare is a subsidy, however not included under this term are the tax breaks they receive or the government contracts they are granted. (Think by Numbers) An estimated $92 billion were put towards corporate welfare in 2006 alone, making up 5% of the federal budget. (Think by Numbers) In comparison the same year the federal government devoted only 3% of the total budget to social welfare programs, such as food stamps, totaling only $59 billion. (Think by Numbers) Some of the biggest, most well-known companies in America receive corporate welfare. The eight biggest recipients according to a 2014 report were Nike, Royal Dutch Shell, Fiat Chrysler Automobiles, Ford, General Motors, Intel, and Alcoa. The company that received the largest amount of corporate wlelfars, was Boeing at $13.18 billion. (Becker) These subsidies come from not only the federal government but the state level government as well. (Becker) After reading this, it’s no wonder why our national debt cannot be balanced. Corporations are more favored by the government because they can do more in return. When companies profit hundreds of thousands, if not millions, of dollars a year it’s hard to understand why our government is handing them …show more content…
(Small Business Saturday) The economic effects of locally owned businesses can be felt at home, in our own communities, whereas the profits from corporations like Wal-Mart only return a small portion to the community and the majority of it goes to make someone else rich. For example, if you spend $100 at a local business, on average about $68 will stay in your community and go to things like community services, local taxes, or donations. The $32 that does not stay goes to import supplies. In contrast when $100 is spent at a corporation only $43 stays in the local economy and the other $57 leaves. Besides the obvious answer that money spent locally stays local and boosts local economy there are a number of other reasons why small businesses benefit us more than corporations. (Small Business Saturday) Small businesses are threatened by big corporations and their vast resources but surprisingly the number of small businesses have increased by 49% since 1982. (Grasshopper) According to the Small Business Administration small businesses have created 8 million jobs since 1990 in the U.S. (Small Business Saturday) In addition to jobs and money for local programs and economy, small businesses help to boost community well-being. One major benefit to a community that has several small businesses as oppose to a few corporate businesses is that have local owners who live in the community know what’s in the best