As a journalist dealing with small business on a daily basis, I see the innovation and growth underway at some of the nation’s smallest firms. The job picture is grim in many parts of the nation. American small firms continue to hire; albeit at a slower pace. Most small businesses are not experiencing the challenges of some of the nation’s best know corporations. The recent collapse of three major financial institutions—Bear Stearns, Lehman Brothers, and Merrill Lynch—has left Wall Street reeling. While investors are concerned about the financial landscape, small firms offer opportunities for growth and innovation.
Are you skeptical about the impact of small firms? Consider Small businesses are the greatest source of new employment in inner cities, comprising more than 99 percent of establishments and 80 percent of total employment. In fact, small firms represent 99.7 percent of all employers. Go to your bathroom medicine cabinet: about half of all the most popular prescription drugs you will find there were initially discovered by small biotech companies.
One business author agrees small firms are a great place for investors to look for new opportunities: “Now might be the time to explore companies that seem a little off the beaten path, innovative outfits in the small- and micro-cap spaces,” says Dian Griesel, author of the forthcoming Uncapped, and founder and CEO of the Investor Relations Group. “Even when times are rough on Wall Street, America never stops innovating or investing in our future.”
Griesel sees biotech as a growing area and untapped opportunity: “Many tech and biotech companies in the micro-cap space are great examples of where the real cutting-edge research and development is occurring. In all likelihood, the micro-cap space is where we will see the emergence of things like oral insulin, cancer vaccines, and the next wave of nanotechnology. These companies act like a crystal ball for the future, and the well-positioned investor has the opportunity to reap windfalls,” added Griesel.
Griesel is also the author of Capitalization Success, The 101 Platinum-plus Rules of Media Engagement, and the forthcoming Uncapped.