This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: On the Sad State of Small Business

But I actually think both sides miss the point -- one that I learned this week by speaking to five CEOs of five gigantic companies: Jim McNerney at Boeing (BA - Get Report), Ellen Kullman at DuPont (DD - Get Report), Alan Mulally from Ford (F - Get Report), Terry Lundgren from Macy's (M) and Howard Schultz from Starbucks (SBUX - Get Report). That point is: You can't compete effectively against the big dogs anymore.

You want to start a small business against Starbucks? You want a coffee shop, a restaurant, a place to grab lunch? You'll have to wind your way through the thicket of regulation, and at the same time you'll need to tackle a company that can figure out pretty much everything that needs to be figured out and has the staying power to go through downturns. You will be going up against a company that has the best supply-chain management, the lowest costs, dedicated employees and a CEO on a mission to run the best company on Earth.

Macy's has the systems, the wherewithal, the talent and the clout to beat up on suppliers. You want to open a retailer and try to compete with that, while at the same time retaining the local touch that had been the edge a small business person could have had? Good luck with that.

You want to be a supplier to Ford or Boeing or DuPont? They can demand whatever they want of you and get it. This is demonstrated daily by Boeing's Partnering for Success program, the one where they put you on the "no-fly list" if you don't play ball.

That's right. What's happened in America is that the huge corporations with lobbyists in Washington and tentacles throughout the country -- the ones with the best balance sheets and, yes, the best leadership -- simply can't be beaten by small-business people. I think that, more than anything else, is the reason behind the lack of small-business creation -- and, judging by the execs with whom I spent time this week, it's not rational or economic to start one. Until that's dealt with, and it is behind me to figure out how to do it, get used to the new norm and what might be a permanently lower-job-growth environment.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,715.47 +54.76 0.31%
S&P 500 2,054.55 +3.92 0.19%
NASDAQ 4,727.3670 +10.2730 0.22%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs