Having read Schumpeter’s views about innovations and inventions in the area of small and large enterprises in the past few days, it was next to impossible for me to not take note of the innovative genius of Sean O’Connor (who in 2001 owned a San Francisco club, Thee Parkside). With the downfall of the dot com bubble, the entrepreneur decided to focus his attention to cheaper food items and stumbled upon the idea of selling pan cake mix in pressurize cans and even got it patented in 2005. The concept was such a success that in 2008 his “Batter Blaster” grossed $15 million in revenue. The product is also retailed through Costco (Costco, Fortune 500) and Whole Foods, (WFMI, Fortune 500).
This example further highlights the theory that small enterprises are better equipped to introduce new technology or ideas as compared to their larger counterparts who proceed with any new innovation ONLY when the larger market appears assured. Sometimes it’s advantageous to start with a small market segment and build up a brand name through word of mouth and then expand. Empirical studies show that this rarely happens in the larger firms as their production structure is not very flexible owing to their economies of scale.
(source: CnnMoney.com/SmallBusiness2009)
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great work again dear...a relief after reading a good deal of academic literature!!!keep up the good work...waitin for more like this!!!
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ReplyDeleteThanks buddy...will write more on small enterprise for a while now..
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