In recent times we are witnessing lot of enterprises sucking down due to losses and heading towards liquidation. I get opportunity to meet large number of entrepreneurs and try to understand real reason for such failure . The situation aftermath of the failure is very painful, emberassing, frustrating and to a great extent insulting too. It is not just the failure which causes problem but the side effects of failure of an enterprise is more dangerous.
Imaging an entrepreneur visualising a large industrial enterprises at a barren and isolated land with no facility. He gives everything to realise his vision including security of own properties and guarantees and so on.. he never gets anything out of this till the enterprise starts operation and churns profit. During this phase he gives employment to many people , pays their salary, buys material and sale in the market. He faces the risk of not getting any money but to pay the suppliers and employees. After long wait if he is lucky , there may be some profit generation to take back home. This is the moment when he is branded as decoit, scamster, thief and all. No one thinks about the efforts and risk the promoter puts in building this dream and sacrificing every thing he possesses. No one appreciates when promoter takes away profit at home . Later if there is any loss or default due to genuine or non genuine reasons the onus falls on the promoter who is totally cornered and trapped in his own making. There is no one at this stage to support him which pushes him further to the dock. N
So far the picture I painted above is quite normal but the real challenge begins now when every thing is finished and the promoter starts losing business , social reputations and family disputes crop in. Debt cloud overtakes him from all sides. Here the promoters divides into two i. An entrepreneur who does not leave the enterprise and gives everything to survive and save it. He will come every day to the business place , respond positively to all the calls and never escapes from responding . He will keep patience, try to keep the unit in operation and beg to save the unit; and ii. An entrepreneur who feels it is not possible to save it now , stops coming to the business place , tries to avoid the calls and takes every step to save the assets under his possession. He may abscond even and manipulate every thing to safeguard his interests.
In both the cases the motive of the entrepreneur is to safeguard his interest but with and without the enterprise. I have noticed that those who treat the enterprise as a child or family member, the revival is almost certain but if the enterprise is deserted at its own fate, it is rare to revive the enterprise as well as the entrepreneur. Wherever the entrepreneur is ready to sacrificethe for the survival of the enterprise and does not leave at the mercy of others , the revival is guaranteed.
Hence my suggestion to all the entrepreneurs currently passing through the challenging phase is to never leave the enterprise at its fate, give your 100% to save it and treat like own child, till it is back to normal. It is bread earner and like we humans some time pass through turbulent time. It is test for you also.
Above suggestion and observations apply only in cases of genuine reasons of defaults and may not hold true when the entrepreneur has intentionally manipulated the matter.
C P
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