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The future is small business, says think tank28th of November 2011
Policymakers should prepare for a future in which big manufacturing business no longer exists and has been replaced by a string of ‘micro-multinational' SMEs, according to a policy brief from an influential European think tank.
The brief by the Lisbon Council claims the 20th century logic that required large foreign talent pools to achieve a global reach has been "stood on its head" and larger companies are now bogged down in bureaucracy and overstaffing, with slow decision-making processes.
"The result is that large companies are under pressure to deliver more with less - a fact which may well account for the jobless economic recovery we have seen in 2010 and 2011," the brief says, claiming such large companies will be incapable of delivering the jobs that politicians hope for.
By contrast, it claims SMEs that use the internet and new business platforms can enter the global markets with a minimum of bureaucracy and overheads.