How Small Business Can Achieve 'Economies of Scale'

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Sep 24, 2020 at 15:29 UTCUpdated Sep 24, 2020 at 15:41 UTC.At EY, we believe that by 2030, more than half of all new business contracts will be blockchain-based smart contracts.

The economies of scale that turned software platforms into monopolies accelerated with the addition of internet-based network effects.

The new business environment is one where economies of scale are less powerful, as blockchain-based software lets smaller companies collaborate together as efficiently as larger enterprises.

So let's imagine what things might how all this might come together by 2030:.On Wednesday afternoon, February 6, 2030, at around 4:15pm, a washing machine in Sheffield, England is going to break.

The new business environment is one where economies of scale are less powerful, as blockchain-based software lets smaller companies collaborate.

Today, such a proposition would be staggeringly expensive, but thanks to the internet and blockchain technology, this startup can offer their highly localized and customized products for only a small premium over mass-market offerings.

Some of the magic comes from digital manufacturing technologies, like 3D printing and digital machine tools, that keep the costs of one-off parts and components not much higher than mass production.

Digital directories of 3D printing service providers, warehousing services, and installation and service companies make it possible to quickly identify local partners in nearly every part of the world.

It's easy to see how, by the time a startup has found a manufacturing, warehouse, delivery, and service partner, they could have spent more money administering their business network than on the cost of actually making and selling the product.

Nearly all of them are gone, driven out by standardization and economies of scale.

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