There are three listed types of business, I am going by figures a decade ago, although now different EU states have added a category and changed the figures. For this exercise we will use the simpler terms as used a decade or so ago.
Companies with up to twenty employees were known as SoHo, companies between 21 and 500 were known as SMEs and Corporates had over 500 employees. This is really only a rough guide but is useful. The figures are a little hazy but SoHo was around 97.5%, SMEs around 1.5% and corporates around 1%. These refer to numbers of companies in the UK.
International conglomerates are a different kettle of fish and are a law to themselves and are no longer capitalist businesses. They really come under the title of Dictatorships and give good honest Capitalism a bad name.
I show a video here about the drug companies in the USA and this adequately describes what I am getting at. It is a shame that this has been presented by Al Jazeera as it meant I had to check all the figures and companies to make sure they were being truthful. They were.
As I mentioned earlier, these huge international businesses are a law of their own and do not respect the laws, either moral or legal, in any country they operate. Recall in the earlier part of the video how they weighed up being dishonest against the fine, and indicated that they thought it was worth disobeying the legal laws of the country as a good business decision if the profits far outweighed any fines or penalties involved.
I call on the Conservative/Liberal Democrat coalition, and David Cameron personally, to re-examine the reductions in taxes he is offering business in the UK.
If the real reason is to create jobs, then the 97.5% of companies which are in the SoHo sector are the ones more likely to employ people. Do away with all Capital taxes including Capital Gains Taxes, and NHS Employee contributions for the SoHo sector. Add a rider on the NHS contributions, so that these will only be on a net increase of staff; this will prevent them firing a few so as to take on another few and avoid the tax (entrepreneurs are wily creatures).
My plan above will probably be lower in cost to the governments plan, but it will be more directly aimed at the entrepreneurial SoHo sector which are then more likely to grow into SMEs.
People have to differentiate between our capitalist system which provides productive jobs (not with the socialist vision of a huge civil service which do not bring in finance) but with the huge dishonest and criminal section of the International Conglomerate sector.
I hasten to add, not all of this massive corporations are disreputable – I am sure one or two aren’t.