Calamities of small business

The instability of an entrepreneur is the starting point of calamities of a small business . It can further extend to the wrong knowledge dissemination of small business advisers, wrong office space . However , the most serious calamity of small business is cash . It requires a heavy cash flow to get the business going and once any hurdle comes in that region , the small business can get into off track very soon. Financial instability is the most important calamity for small business which can jeopardize all other aspects of small business.

Small Business Advisors

Advisers are a very important component of small business . Often it is found , that the owner of the small business is very good at one thing , which has led him to start the business . However , he might be very poor on the other factors of the business . That is why it is important for him , to get advisers on all the areas where he is not good at . One of the most important area is the 'Business of small business' . This is where, he should take strategic consultants, who could document the vision of the business owner, in the form of the planning document, which will make easy for the owner to handle issues related to business in the order of strategic importance.

The power of Nuetrality

Certain times , being neutral can be very powerful experience both in business and family . In fact , India, as a country has learned it, very early, after it developed its independent foreign policy . Being a leader of Non-Align movement, it played a neutral role , and by that it, had a powerful experience as a country. Such success has to be replicated in the level of our small business also . Small and Medium Enterprises (SME) are right now the second largest employer after agriculture . It had a bigger role to play in the prosperity of the country .

That could be successfully handled when it plays a neutral role on resolving number of issues affecting the business community by and large , and starts an effective dialogue with stakeholders of civil society on issue related to environment and social development. Such dialogue would make the process of growth smooth for small business and bring the small business owners in a bigger role, of development of economy and simultaneously taking care of social and environmental issues.

Role of exit routes in small business agreement

Most of the deals which happens in small business are based on personal contact . So when terms or agreement are framed, often exit routes of the business deal is ignored . That is where , the business gets locked over a point of time and encounters a barrier of growth . The good agreement for business could be made, and break, at the same time . However , due to presence of personal contact , there is an extensive moral obligation, which plays a pivotal role on defining the agreement . That is why the agreement, could not be break and parties are locked for a infinite amount of time. This is definitely detrimental for both of the parties, and so exit routes should play a key role on all small business agreement.

The structure of a small business

Small business are normally loose in structural component . However , with the rise of structured finance in the early stage companies , reported by NKC study on 'Entrepreneurship in India', things are expected to be different . Most of the time , brininging in external finance is an automatic process on making things structured. As it is commonly perceived, that if you want the things to be organised, make the process digital, is also an timely advice. As the business grows infusing external funds and making some of the core process of organisation digital , is a easier route to make small business more structured.

Business Competition : The Change in Attitude

There is remarkable change in attitude, in Business Competition . Most of the key players in every segments have understood the importance of creating network of collaboration in order to successfully compete in the market . Often, after conquering the competitor through hostile acquisition , corporates re-instate their position in the market . Corporates have understood a great lesson on competition , that to successfully compete in market , you have to successfully collaborate first. It is the time for small business to understand this lessons and practice it in their business operations.

This is important , as while consulting in the small business sector, I have gathered this experience that most small business who are very hostile to their competitor and doesn't collaborate in the market while competing , stand as a looser at the end. There is need for change of attitude in the SMB sector in regards to competition.

The Entreprenuerial Adnormality

In our therapeutic culture, I'm sure some socialist and political leaders, hopes they can find the genetic abnormality that triggers entrepreneurship. They feel with that they can cure the conditions which triggers entrepreneurship.

That's the only guaranteed path to permanent power stability uninterrupted by innovation. Infact it is much easy to stay in power both in society and politics without the constructive intervention of entrepreneurs. It is often seen that they raise the bar for society and politics and move them to become more accountable for the actions towards the nation and the globe.

Recently , I was going through a article from rediff which shows how Vinod khosla takes his decisions on renewable energy ventures.

http://www.rediff.com/money/2008/jul/22slide1.htm

'Get busy' is the punch word of the smartest venture capitalist in the renewable space, who once dreamed to become an entrepreneur .

If our politicians could take decisions like that , on pressing environmental issues then half of the environmental problems of the world could get solved.

It's good for the world , to an extent, that our politicians and social leaders, does not find cure for the entrepreneurial abnormality in near future . Innovation could then play a role of great leveler between the 'have' and 'have not' in global society.