Small is Beautiful

Small businesses get no respect--and little venture capital. A new exchange could fix that.

Issue: Fall 2004

SMALL-TO-MEDIUM enterprises (SMEs) around the world face a common problem: obtaining a "sliver of equity" to enable them to achieve growth and positive cash flow. While this might not be an imminent problem akin to international terrorism or to nuclear proliferation, the results could be as catastrophic for America's financial interests as the failure to predict the danger posed by Al-Qaeda prior to 9/11 was to our security interests.

Without economic growth, states are unable to cope with a myriad of challenges, from providing employment to funding social services. In the Summer 2004 issue of The National Interest, Adrian Karatnycky highlighted the threat posed by poor economic performance to democratic polities by noting,

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