Rep. Nydia M. Velazquez, an influential Democrat on the House Small Business Committee, has issued a warning about the growing threat of corporate monopolies to the US small business sector. She points to an alarming concentration of power among big corporations which could potentially endanger fair competition and market sustainability.
Worryingly, this comes amidst a surge in startup activity and entrepreneurship in the post-pandemic world. Velazquez emphasizes the struggle that many small enterprises face when trying to compete with large corporations and their market dominance. She is pushing for vital changes that safeguard the interests of small businesses, which form the backbone of the American economy.
Fortunately, the country has seen a reversal in the previous stagnation of entrepreneurship. In just three years under the Biden administration, there have been around 16 million new small business applications. This has had positive impacts on local economies and has resulted in personal wealth generation. However, Velazquez warns that these aspiring businesses might face difficulties in a corporate giant-dominated economy.
Amazon is a concern for Velazquez. It exercises substantial sway over the retail sector, and its actions can make or break small businesses. Its ability to change fees and rules without consultation leaves small businesses with little wiggle room. There’s an urgent call for policies that help protect and promote the growth of small businesses, limiting Amazon’s oversized influence.
The agricultural industry, long populated by small-scale operations, also struggles against corporate concentration. Small farmers endure high costs for essentials and stiff competition due to imbalanced market power. To maintain the recent surge in small businesses, structural challenges need acknowledging, alongside reforms to antitrust enforcement to tackle the issues caused by economic consolidation, as argued by Velazquez.
Velazquez remains of the belief that an overhaul of existing antitrust laws is more critical than ever in light of the economy’s leaning towards large corporations. She warns that economic disparity can stifle growth for small businesses. As she sees it, reform is of paramount importance given the economic bias towards these large businesses.
