The Big Idea
Free market capitalism gets a bad rap sometimes. It’s blamed for inequality, greed, and corporate excess. But that’s not the full story. When it’s done right — fairly, locally, and with accountability — it can build stronger communities.
It’s not about Wall Street. It’s about Main Street. It’s about people who run small businesses, hire neighbors, sponsor youth sports teams, and keep local economies alive.
Capitalism, at its best, rewards problem-solvers. It creates opportunity, not just for owners but for everyone willing to put in the effort.
As entrepreneur and CEO William Clawson says, “Free markets only work when they’re fair. When people can compete on effort and ideas, not connections, communities grow stronger, not weaker.”
That’s the key — it’s not capitalism itself that builds communities, but how we practice it.
What “Doing It Right” Actually Means
Free market capitalism isn’t supposed to mean chaos or exploitation. It’s about open competition, choice, and accountability.
When a small business opens, it competes by offering better products, lower prices, or better service. That competition pushes everyone to improve.
The right kind of capitalism rewards value creation, not shortcuts. It’s about earning trust, not extracting it.
According to the U.S. Small Business Administration, small businesses make up 99.9% of all U.S. businesses and employ nearly half of the private workforce. They aren’t just the economic backbone — they’re the cultural heartbeat of their towns.
Each store, café, or contractor represents a family, a dream, and jobs that can’t be outsourced. That’s capitalism at its best — people solving problems in exchange for fair reward.
How It Strengthens Local Economies
When businesses compete locally, money circulates locally.
A 2023 report by Civic Economics found that for every $100 spent at a local business, about $68 stays in the community, compared to only $43 when spent at a national chain. That’s a massive difference in impact.
Local business owners hire local accountants, use local suppliers, and eat at local restaurants. The ripple effect builds resilience.
One Montana shop owner described it perfectly: “Every time someone buys from us, I get to hire another local kid for the summer. That’s how we keep the next generation here.”
That’s free market capitalism working the way it’s meant to — creating jobs, skills, and pride.
Actionable tip: Whenever possible, spend locally. Every purchase is a vote for the kind of community you want to live in.
Competition That Lifts Everyone
Healthy competition doesn’t just help consumers — it sharpens everyone’s game.
When multiple businesses compete fairly, innovation spikes. Products improve. Prices stabilize. Service quality rises.
Take the craft brewery boom as an example. Between 2010 and 2023, the number of independent breweries in the U.S. jumped from 1,800 to over 9,500, according to the Brewers Association. That explosion didn’t crush big beer — it expanded the market.
Now towns have new jobs, community events, and tourism dollars because local entrepreneurs saw opportunity and took it.
That’s capitalism driving creativity — not consolidation.
Actionable tip: Compete by improving, not imitating. Look for what your business can do better for your community, not just cheaper or faster.
The Role of Ethics and Accountability
Free markets rely on trust. If customers think you’ll cut corners or cheat them, you’re done.
The strongest companies balance profit with principles. They know long-term growth only happens when people believe in them.
Clawson once shared an example from his early days running a manufacturing company. A supplier offered him a cheaper deal that would’ve required cutting worker hours with no warning. “The math looked good,” he said, “but it didn’t feel right. Those workers were also my customers. If I broke trust there, I’d pay for it later — and I did the math on that too.”
He turned down the deal, kept his team steady, and six months later, that supplier went out of business. “Doing the right thing paid better than taking the shortcut,” he said.
The lesson is simple: ethics and economics aren’t opposites. They’re teammates.
Actionable tip: Set three non-negotiables for your business — values you won’t trade for short-term gain. Then actually stick to them.
Empowering People Through Opportunity
Capitalism works best when it creates opportunity, not dependency.
Every successful small business creates ripple effects — part-time jobs, internships, and career paths. Each success story inspires another.
According to the U.S. Chamber of Commerce, small businesses created 12.9 million new jobs in the last 25 years, accounting for two out of every three new positions. That’s economic mobility in action.
When people can start something, grow it, and pass it on, they build not just income but identity.
A bakery owner in Oregon once said, “I started with a mixer and a folding table. Now I employ 14 people. That’s 14 families who shop here, live here, and help keep this place alive. That’s what capitalism should do.”
Actionable tip: If you run a business, find one way each year to grow opportunity — a new hire, an internship, or a local partnership. Growth should multiply, not just accumulate.
Why Communities Need Entrepreneurs
Communities thrive when they have builders — not just consumers. Entrepreneurs are the builders. They take risks, spot gaps, and create new value.
But they can’t do it alone. They need good infrastructure, smart regulations, and fair access to capital.
Unfortunately, nearly 60% of small business owners say access to financing is their biggest obstacle (Fed Small Business Credit Survey, 2024).
That’s where policy and community programs come in. Local banks, chambers of commerce, and small business alliances play a critical role in keeping capitalism open to everyone — not just the well-connected.
Actionable tip: Support programs that fund local startups. Even microloans can change lives and build stronger neighborhoods.
The Free Market Mindset
Free market capitalism isn’t just a system — it’s a mindset. It rewards those who solve real problems and create value for others.
When that mindset spreads through a community, everyone wins. More small businesses mean more jobs, more tax revenue, and more local pride.
But the “done right” part matters most. It means competing fairly, paying people well, and thinking long-term. It’s capitalism with a conscience — and it works.
As Clawson often reminds people, “Free markets don’t need to be fixed — they need to be practiced properly.”
That means fairness, transparency, and effort — not greed or shortcuts.
A Simple Way Forward
If you want to strengthen your community, start by supporting the people who strengthen it every day. Buy from local businesses. Mentor young entrepreneurs. Invest in fairness over convenience.
That’s how capitalism goes from being an economic theory to a living ecosystem.
It’s not about picking sides — it’s about participation.
Every business that plays fair, pays fair, and grows responsibly adds to the collective good.
Capitalism, when practiced with integrity, doesn’t divide people. It connects them — through shared purpose, earned trust, and the simple act of making something valuable for someone else.
That’s how communities get stronger — one good business decision at a time.
