Tuesday, 28 August 2012


Businesses are meant to expand beyond their home country and to make their presences felt around the world. Their products are expected to be a common household which every person should crave for. But many businesses do not know that politicians stand as a stumbling block for the growth and expansion of local businesses through their personal interest that affect the free flow of business among nations around the world. It is these businesses which the people in middle and lower class rely upon for their survival and that is where they invest all their energy and time in order for the products to be acceptable in every market and in turn increase their daily wages. Politicians that determine the direction of markets for their local businesses have no idea of how hard these two classes of people have invested in productivity. Politicians do not understand that the middle class, the lower class rise through the economic difficulty and it is upon their productivity that their income is built. The fact is that both classes suffers from the irrational decisions of these politicians with their cohorts that serve as government contractors in every nation. Government contractors dominate the scene and usually think for the politicians that do not take cognizance of these two groups of people before making political decision that affect businesses. These two classes must be recognize as the back bone of any economy and must be treated fairly in political decision making. Investors and global elites who own multinational companies are usually focused on profit while not considering the fact that the middle class and the lower class serves as the engine of their profit. 

Since the 1950ties many small and medium businesses have adopted the pattern of relying on expert advice just as the multinational businesses do to determine their development and expansion in different markets and as the climate of business changes either due to unforeseen forces in the market or government official decisions which can not be controlled by the CEO's of small and medium businesses and their management teams, they discovered that expert advise have continued to fail in forecasting the dangers ahead which has led to many businesses going under during the economic recession. Many who invested based on expert advice seems to regret their actions because they did lost all their saving. A lot of business owners are people who move with the wind and when the wind stops blowing they go bankrupt easily. What many small business owners do not understand is that many multinationals organisations insured their investments with the political system run by politicians and when expert advise fails they are covered. And if in any case the organisation must go bankrupt, the global elite who owns the company gets back his investment share price while other investor go down with the sinking ship.

 Here, i will be making suggestions for small and medium businesses to first put away all political influence in their business deals. It is better not to invest in a business that you can not control, for a business which you do not have control off, such business will surely control you. Big businesses owned by global elites are attached to governments, contracts and security for  survival is immense in political decision for them but for small and medium size businesses it must have no relationship with politicians and it being independent should seek producing for the people within  and other markets. The deep attachment of Big businesses with government officials denies the access for small and medium aspiring business to go beyond their borders to establish their presences. Some of these is what China avoided which made many small and medium businesses in China to become global players within a decade.

 A deep attachment to politics and government officials when doing business can totally destroy the future of any business and its expansion, for political decision controls human society and what normal business entreprise  intends to do are always subject to the program and policies made by politicians who are not business inclined but supporters of Big businesses. And on many occasions, their decisions does not work for the interest of both the medium and small businesses. Political decisions in home countries against other nations, work as a stumbling block to reduce the flow of business transaction with other partners across the border and countries where commodities from such small and medium business entity ought to have made its mark quickly in other local markets abroad.

Business oriented people of the 21st century need to know that politicians do not have a permanent friend and does not want a permanent enemy, what it desire is a permanent and selfish interest of its own. But businesses have a permanent friend which is the consumer who resides anywhere around the world and in any type of political system. Politicians do not care how business operation are worked and by a stroke of wrong political decision they can make a business go bankrupt and they are not interested in knowing the technicalities and economics of expansion in the world of competition. What they are intrested in is what their global elite friends would get and what their own profit would be in the political decision is implemented. 

Adam Smith's capitalist concept of free trade was never a wrong idea, it never expected businesses to rely on government budgets for the survival of any business, but it was the politicians of many capitalist societies who later determine WHERE and WHO gets the commodity at the international market that got it wrong for the businesses and made Adam Smith theory a foolish idea. Those businesses that rely on government budgets used their influence in government to determine the rate at which the forces of demand and supply dictates the free flow of goods and services in the market and it has made it more water tight for small and medium businesses to survive.  World business elites have narrowed the essential public good which ought to come from policy making to themselves and their businesses, thereby making government policies to stand against the growth and development of other small aspiring businesses that are not patterned towards government finance.

 This is basically the reason why many small and medium business owners became politicians at the local level overnight, all is in order to protect their investment, believing its when businesses and their owners are associated with politicians it opens the door for juice contracts and government insurance can be secured for such businesses. Some small and medium businesses decided to have candidates in the people's congress all in an attempt to have a better advantage. This can only make such a person become wealthier while making those that works for him live in penury and end up losing their income when they retire from the organization because he will have to share with the politician and other contesting interest in the society. Because of his own interest, he will decide to be looking for a more cheaper place territory to produce and this will lead to outsourcing and by so doing he neglects the engine room that produces the wealth he sits upon.

Businesses have been told that political and economic sanctions are based on national security or national interest advancement, for those strugglling business empires and the middle class businesses that have gone bankrupt, they would now know better that personal interest of global  businesses and politicians who could not see beyond their society played a greater role in approving sanctions. The influence of global elites in political decisions has been able to see that economic sanctions stood as a stumbling block to the success of small vibrant businesses especially in the United States. It is now that one will expect Americans to better understand why Standard Chartered Bank of the United Kingdom had to do deals behind close doors with some Iranian businesses and still willing to pay a handsome fine from the profit, probably if that covert business was not carried out it would have asked for a bail out too. Standard Chartered did such simply because there is money to made in the Iranian market which was denied by some powerful political opinion leaders in the west and some politicians who hold and dictate the mantle of public decisions in the United States.

 It would have been impossible as at the year 2012 to ascertain the billions of dollars many western small and medium businesses would have made in profit, if it was doing business with a consuming nation like Iran. But since economic and political sanctions were slamed on the nation after its 1979 Islamic revolution by the U.S. and European governments, it has denied those businesses to access those markets. It is certain that sanctions on other Third world countries have not really helped many U.S. and western small aspiring business enterprise and as such, it has limited their expansion in a fast developing and consuming world where a single country can change positively the profit margins of any business organization. The result of those sanctions is what  many U.S. businesses are suffering from during this economic and financial downturn of the 21st century. The decisions and policies of the western politicians that favors global business elites has denied small and medium businesses to seek new grounds and open new markets for its goods.

 The western politicians believing it was going to be consistently rosy for the Western world, its business executive, business consultants and politicians who never saw the dangers of their actions in a fast moving world of innovation and education which the far East has secured. They went to sleep on their minimal success, for more than four decades, access was denied to many Western businesses to expand due to political differences, which their home country had with many Third world nations that are now the source of world commodity demand, which  is driven by its population growth and its fast rising middle class, that has access to modern technological and know how to produce cheaper and flexible products. Many terminals in the western world that export goods are closed or now receives imported goods from those nations that formally depended on western products. Its a pity, that those fast growing global businesses of those era in the Western world misplaced priorities and are now seriously competing and wanting to catch up with other smart evolving businesses from the East, especially those within the Asian tigers territory. The economic problems in the West has opened up the weakness of its politicians and their decisions on business enterprises. 

But the fact is, its never to late for any business owner that wants to take the bold step in opening up new factories in the Third world countries where labour is cheap and material resources are available. Its products will be consumed by the local population which still relies on foreign imports and the avenue to export is readily  available. Americans and other western small and medium scale CEO's  should develop a synergy with their politicians to lift sanctions off those countries that their politicians have slammed sanctions upon for decades, and at the same time other Western businesses of all shades and types have to prevail upon their government  to change their attitudes towards countries like Cuba, Iran, Zimbabwe, North Korea and Burma that have the potential of generating huge capital for Western businesses in the nearest future. This has to  be done quickly, for there to be an open door for investment and trade between the two old enemies before they lose the entire world market to the Asian tigers especially China and India. And this blunder commited by the west should serve as a lesson for other fast developing nations not to let politics determine WHERE AND WHO gets what of business output in a global world.

No comments: