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Big business

WorldBrand briefing

AI supplement

Original synthesis to sit alongside the encyclopedia article below. Not part of Wikipedia; verify facts on Wikipedia when precision matters.

Big business refers to large-scale, corporate-controlled commercial activities that operate on national or global scales, characterized by substantial financial resources, extensive workforces, significant market influence, and often dominance in their respective industries. Emerging prominently during the late 19th century's Second Industrial Revolution, particularly in the United States, it has become a central force in global economies while facing ongoing scrutiny over monopolistic practices, wealth inequality, and prioritization of profit over social and environmental concerns.

Key moments

  • Post-1880The concept of big business emerges symbolically in the U.S. alongside the corporate combination movement, driven by the Second Industrial Revolution's technological advancements.
  • Late 19th centuryIndustry leaders like John D. Rockefeller (oil) and Andrew Carnegie (steel) dominate sectors using vertical and horizontal integration strategies, establishing the first major big business empires.
  • 1890U.S. enacts the Sherman Antitrust Act, the first major government response to address monopolistic practices by big businesses.
  • 20th century onwardsBig business expands globally, with multinational corporations emerging across Europe (e.g., Daimler, Siemens) and later tech giants like Google, Apple joining traditional energy, finance, and retail players as key global big business entities.

Historical Origins and Drivers

The rise of big business was inextricably tied to the Second Industrial Revolution's innovations, such as railroads, telegraphs, and advanced manufacturing techniques, which enabled companies to scale operations, reduce costs via economies of scale, and consolidate market power. In the U.S., this era saw the rise of 'captains of industry' (or 'robber barons') who used integration strategies to control entire supply chains, eliminating competitors and dominating markets.

Dual Impacts on Society and Economy

Big business has been a catalyst for economic growth, technological innovation, and large-scale job creation, driving urbanization and raising living standards in many regions. However, it has also sparked criticism for labor exploitation, widening wealth gaps, and monopolistic behavior that stifles competition. In recent decades, concerns have shifted to its influence on political policies and environmental degradation caused by large-scale industrial operations.

Global Evolution and Modern Landscape

What began as a primarily U.S.-centric phenomenon has evolved into a global network of multinational corporations spanning every major industry. Today, big business includes not only traditional energy, finance, and manufacturing firms but also tech giants that have redefined market dominance through digital platforms, highlighting the ongoing adaptability and influence of large-scale corporate entities in the 21st century.

Big business involves large-scale corporate-controlled financial or business activities. As a term, it describes activities that run from "huge transactions" to the more general "doing big things". In corporate jargon, the concept is commonly known as enterprise, or activities involving enterprise customers.[1][2][3]

The concept first rose in a symbolic sense after 1880 in connection with the combination movement that began in American business at that time. The latter half of the 19th century saw more technological advances and corporate growth in additional sectors, such as petroleum, machinery, chemicals, and electrical equipment (see Second Industrial Revolution).

In the sphere of enterprise software, beyond the functional level, an enterprise edition would emphasize institutional concerns around software security, fault tolerance, geographic redundancy, disaster recovery, dispersed operational collaboration with administrative teams large enough to have internal sub-departments, and multilingual and localized functionality that spans the global marketplace. Procurement, validation and regulatory compliance of large systems at the enterprise scale often involves a multi-year planning cycle.

History

Origin of term

The Oxford English Dictionary identifies the first use of the term, in 1905, to be in The City: The Hope of Democracy, by progressive reformer Frederic C. Howe.[4]

Early 20th century

The automotive industry began modestly in the late-19th century, but grew rapidly following the development of large-scale gasoline production in the early 20th century.

Post-World War II

The relatively stable period of rebuilding after World War II led to new technologies (some of which were spin-offs from the war years) and new businesses.

Computers

The new technology of computers spread worldwide in the post war years. Businesses built around computer technology include: IBM, Microsoft, Apple Inc., Samsung, and Intel.

Electronics

Miniaturization and integrated circuits, together with an expansion of radio and television technologies, provided fertile ground for business development. Electronics businesses include JVC, Sony (Masaru Ibuka and Akio Morita), and Texas Instruments (Cecil H. Green, J. Erik Jonsson, Eugene McDermott, and Patrick E. Chodery), while also the companies in the computer-section above can be considered electronics.

Energy

Nuclear power was added to fossil fuel as the main sources of energy.

Computers

The new technology of computers spread worldwide in the post war years. Businesses built around computer technology include: IBM, Microsoft, Apple Inc., Samsung, and Intel.

Electronics

Miniaturization and integrated circuits, together with an expansion of radio and television technologies, provided fertile ground for business development. Electronics businesses include JVC, Sony (Masaru Ibuka and Akio Morita), and Texas Instruments (Cecil H. Green, J. Erik Jonsson, Eugene McDermott, and Patrick E. Chodery), while also the companies in the computer-section above can be considered electronics.

Energy

Nuclear power was added to fossil fuel as the main sources of energy.

Post-World War II

The relatively stable period of rebuilding after World War II led to new technologies (some of which were spin-offs from the war years) and new businesses.

Computers

The new technology of computers spread worldwide in the post war years. Businesses built around computer technology include: IBM, Microsoft, Apple Inc., Samsung, and Intel.

Electronics

Miniaturization and integrated circuits, together with an expansion of radio and television technologies, provided fertile ground for business development. Electronics businesses include JVC, Sony (Masaru Ibuka and Akio Morita), and Texas Instruments (Cecil H. Green, J. Erik Jonsson, Eugene McDermott, and Patrick E. Chodery), while also the companies in the computer-section above can be considered electronics.

Energy

Nuclear power was added to fossil fuel as the main sources of energy.

Computers

The new technology of computers spread worldwide in the post war years. Businesses built around computer technology include: IBM, Microsoft, Apple Inc., Samsung, and Intel.

Electronics

Miniaturization and integrated circuits, together with an expansion of radio and television technologies, provided fertile ground for business development. Electronics businesses include JVC, Sony (Masaru Ibuka and Akio Morita), and Texas Instruments (Cecil H. Green, J. Erik Jonsson, Eugene McDermott, and Patrick E. Chodery), while also the companies in the computer-section above can be considered electronics.

Energy

Nuclear power was added to fossil fuel as the main sources of energy.

Criticism

The social consequences of the concentration of economic power in the hands of those persons controlling "big business" has been a constant concern both of economists and of politicians since the end of the 19th century. Various attempts have been made to investigate the effects of "bigness" upon labor, consumers, and investors, as well as upon prices and competition. "Big business" has been accused of a wide variety of misdeeds that range from the exploitation of the working class to the corruption of politicians[5] and the fomenting of war. Attitudes toward big business have fluctuated; Americans generally had a favorable view of big business in the 1950s, which would worsen drastically in a generation later.[6]

Influence over government

Corporate concentration can lead to influence over government in areas such as tax policy, trade policy, environmental policy, foreign policy, and labor policy through lobbying. In 2005, the majority of Americans believed that big business has "too much power in Washington."[7]

See also

References

  1. Compliance-as-a-service platform Laika raises $35M VentureBeat, 2021-11-02, retrieved 2021-11-03^
  2. Frederick Daso. WorkOS Unlocks Equal Access For B2B Startups Selling To Enterprise Customers Forbes, retrieved 2021-11-03^
  3. עסקים קטנים, 23 January 2023^
  4. "big business": 1905 F. C. Howe City, p. ix.^
  5. Mark D. Ramirez, Paul G. Lewis. Beliefs About Corporate America and the Structure of Opinions Toward Privatization Political Behavior, December 2018, retrieved 30 May 2024^
  6. Sicilia, David B., 'The Corporation Under Siege: Social Movements, Regulation, Public Relations, and Tort Law since the Second World War', in Kenneth Lipartito, and David B. Sicilia (eds), Constructing Corporate America: History, Politics, Culture (Oxford, 2004; online edn, Oxford Academic, 1 Sept. 2007), https://doi.org/10.1093/acprof:oso/9780199251902.003.0008, accessed 30 May 2024.^
  7. Timothy P. Carney. Big Business and Big Government 2 July 2006^