Opponents of Walmart’s planned Neighborhood Market in downtown Los Angeles are trying desperately to paint a portrait of David versus Goliath – mom-and-pop shops against Walmart.
But when it comes to economic growth, small businesses and large companies actually support each other. Indeed, the entrance of a large retailer like Walmart into a new marketplace is the key to helping many local vendors to grow.
As a former U.S. Small Business Administrator, I advocated for the small businesses that are vital to this country’s economic fabric and ingenuity. We helped minority- and women-owned businesses to expand and flourish, and awarded more loans to small business owners than any previous administration.
But during my time at the SBA, I learned that small businesses cannot flourish without a strong and healthy free-market that is friendly to companies of all sizes.
The positive impact Walmart would have on Los Angeles’ small businesses can be explained by the basic law of supply and demand. When a large retailer like Walmart enters a new market, it needs local suppliers to help fill its maintenance and product needs, which means surrounding vendors benefit.
According to Dun & Bradstreet, an independent firm that compiles commercial and business data, Walmart spent $25.85 billion for merchandise and services with over 4,000 suppliers in the state of California in fiscal year 2012. The number of supplier jobs that result from Walmart’s relationships with such vendors is approximately 281,785. READ MORE
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