The Cantillon effect describes the phenomena that those closest to the money-printing benefit the most. Larger institutions, banks, organizations, and corporations are closer to the money. Larger groups representing large amounts of coordinated interests are also closer to the money.
What are SMEs, small and medium Eenterprises? Small businesses are usually defined as organizations with fewer than 100 employees; midsize enterprises are those organizations with 100 to 999 employees. According to the Small Business Administration(SBA), SMEs employ 47.1% of all private-sector employees.
There is another level of business that is defined by certain states or organizations. A microenterprise employs 10 or fewer people and grosses less than $250,000 annually in some cases and a maximum of $500,000 annually in other cases. That is most businesses.
These businesses are a vital part of your downtown and local community. These businesses include our local pub.,our local retail store your local restaurant, car service shop, home product shop, florist, flooring or lighting store.
However, whether its number of employees or annual revenue, what makes or breaks a business is the difference between income and expenses. Too much red ink and the business dies. The goal is to have more income than expenses. The largest part of expenses tends to be capital equipment, inventory costs, and wages.
Numerous people have written about how inflation has a larger and more deleterious effect on those at the lower wage levels. We’ve seen this clearly in the last 20 months.
Inflation will also often have the largest effect on smaller businesses. What’s needed is something that counters the effects of inflation.
These smallest businesses need Bitcoin the most.
Some of the reasons inflation affects these smallest business most:
1. Economies of scale. Larger businesses often benefit from economies of scale – if you buy more, you get discounts. The smallest businesses don’t have this…
