Graves: Large & Small Business Partnerships Equal Economic Growth

Press Release

House Small Business Committee Chairman Sam Graves (R-MO) today held a full Committee hearing on the added value, jobs and economic growth that come from large and small businesses partnering together. Between the anemic economy and demands of a global marketplace, large companies are increasingly creating alliances with smaller companies to benefit from their leanness, nimbleness and creativity.

Recent studies have shown that the top 500 global businesses have an average of 60 alliances each. Additionally, the typical U.S. multi-national corporation purchases goods and services from more than 6,000 small businesses; purchases a total of more than $3 billion in inputs from these small businesses; and relies on these small business suppliers for more than 24 percent of its total input purchases.

"An alliance with a larger company means more opportunity for that small business which in return equals job creation and growth," said Graves. "As the economy attempts to rebound from the recession, partnering with large companies is a great avenue for small businesses to benefit from financing opportunities, mentoring programs, and a broader sales and distribution base.

"No matter what area a large or small company excels in, they are more likely to succeed if they partner with a company that does well in what they do not. Just as we heard from our witnesses today, these alliances help both large and small businesses remain sustainable and reach new heights for their company. Both of which are important to turn a struggling economy back into a thriving one."

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