Too Much Big Business is Harming Our Communities

Article: Too Much Big Business is Harming Our Communities

Writer: Graceana Sewall Hardy

            How much do you think about where you're spending your money? In the past few years, more and more large businesses have been moving into the River Falls area, the most recent cases being the Starbucks and Dunkin that popped up on Main Street. How do these recent changes affect the community, and is it for the better or worse?

But first, what even is the difference between a big business and a small business? Well, believe it or not, there are criteria for what constitutes a small or large business! The U.S. Small Business Administration dictates that any company with fewer than 500 employees is a small business. more than you expected? Well, when you look further into it, 85 percent of small businesses have fewer than 20 employees. Of course, there are differences beyond how many employees the company has. For instance, small businesses are usually funded through the owner's savings or small bank loans. Larger companies receive money from investors. The structure of small businesses is often different as well, with smaller establishments having one person to answer to, unlike large corporations which have strict and established systems of governance. 

Because these companies operate so differently, the way they can affect local communities is different as well. Often States will offer money to large corporations to move to the area because of the boost it gives to the overall employment level. According to the Milwaukee Journal Sentinel, A few years back, Wisconsin offered a $2.85 billion tax incentive to Foxconn in a deal that promised to create 13,000 new jobs. When attending the ceremonial groundbreaking in 2018, then President Trump dubbed the plan the "the eighth wonder of the world." Foxconn's promises never came, however, with the company today employing only around a thousand people. This is a common pattern, usually leaving the overall employment at a county level the same. Worse, the money to make those deals often is taken from other services, like free school lunch (which, according to Sarah Kemp, over half a million Wisconsin students are dependent on.) 

Small businesses tend to put more money back into the community. A Chicago study conducted by the American Independent Business Alliance showed that “for every $100 spent at a local business, $68 remained in the city while only $43 of each $100 spent at a chain retailer.” This is because small businesses have much more motivation to buy locally. They have more connection to the people in the area and usually don't have the large-scale production capabilities big businesses do. If you shop at a large-scale local business you are still giving back to the community, considering it's probably being operated by someone who lives there, but it is less direct.

The downside of small companies is that the company's positions can be more unstable and provide fewer benefits, often because they lack the funds for it. Then again, working at a large-scale business is no guarantee you’ll be treated fairly either. Just last year protests broke out at Amazon's corporate headquarters over the treatment of their employees. Amazon is the second largest business in the US, with a worth of 1.64 trillion, according to CBS. News. Being so large means they have gotten to dictate many of the ways the market works, trapping people in low-paying jobs. The money they have “saved” funds Amazon to buy other companies, growing its monopoly.

When it comes to fighting big companies, it's unlikely any legal action you consider taking will amount to much. There are cases where companies have been held accountable for their human rights violations (as they should) but the law can only do so much. Though they might try to make you forget it, you have power as a consumer. As of now, if you want to make a change, you need to utilize the impact your attention and your money has on companies. It's not an ideal solution. In the modern world, it's nearly impossible to shop completely ethically or at small businesses when it comes to necessities. Most people can't afford to. But, by shifting the ways you spend money on nonessentials such as coffee and accessories you show those companies that it does matter and you do have a voice.

The most recent corporation to move into the River Falls area was Starbucks. Along with other controversies, Starbucks has been in hot water as of late due to its strict rules on unions. Though the singular business alone will not cause the entire economy of the River Falls downtown to collapse, ask yourself if their presence is truly in the best interest of the community and if it's needed. In the meantime, consider checking out one of the many other coffee shops in the area, like Waystone or Se La Vie.