Small Business and the Real World
I have a reputation around the office for being a bit of a skeptic, so I felt a little challenged the other day when Emily asked me to name some things I am bullish on. I think she thought she had me at a loss, but as I rolled the question over in my head, two trends came top of mind: Small Business and The Real World.
By Small Business I mean independent proprietors and regional firms that are well-known and supported in their communities. The reason this is the case is because I think consumers want to patronize these types of businesses, and I think the tide is turning on the technology side to help them stand shoulder to shoulder against bigger firms. For example, something like Square was able to let small businesses easily accept credit cards, making them as convenient to buy from as larger retailers. And technologies like Shopify’s enable small businesses to look as professional and be as efficient to buy from online as big ones. (Yes, I also see the irony of big businesses being what enables small ones.)
Yet whereas in the past, consolidation and the Wal-Martization of the world seemed inevitable, I think it’s going the other direction now despite who is enabling what. There are risks, of course. Many of the most innovative technologies, such as AI, are being developed by large corporations for use by other large corporations, which if not proliferated out could give them permanent advantages over small businesses and lead back to consolidation.
But ultimately pluralization and specialization have merit. A world where that’s the case is more competitive, provides more choice, and makes everything less fragile. So I’m bullish on that, and we have our money where our mouth is on this one by focusing on small- and medium-sized businesses in our investment approach. After all, one of the reasons we do what we do is to help more American small businesses stay independent and thrive.
By The Real World I mean actual experiences that people can touch and feel. It is, for lack of a better description, the antithesis of the Metaverse, which as an entire concept is something I find both bewildering and depressing.
We have our money where our mouth is on this one too, with investments in our portfolio in swimming pools, airplanes, amusement park rides, and relationships. Fun and love, I hope and think, aren’t going anywhere.
And this is good for the world, too. I try to not get too serious in this space, but I don’t think it’s a coincidence that rising levels of teenage suicide and depression have coincided with the digitization of society.
I’ve said it before and I will say it again, it turns out we’re social creatures.
