Saturday, March 17, 2007

Business Sense???who gives a damn

u would have heard a lot about entrepreneurs which reside in the hinterlands of India.. or may be you would have heard about the IIM grads leavin their grand paychecks to pursue the entrepreneurial culture.. but wat i am goin to tell about is the abundance of money which is leadin to openin of new shops with what seems to me a bad business.. A leading telecom player establsihes a distributor in big district.. then it appoints Associate Distributors (AD's) in the hinterlands.. they take 8-10 lakhs as security deposit with no interest payment and the commission paid is 1% of the turnover.. now average turnover of the AD is 1,00,000 p.m. and he pays the salary to the staff he hires, his all shop expenses and he gets stuff from the company only on the draft amount paid to the company thus availing no credit from the company.. a simple calculation will tell you tht it doesn't makes any business sense from any angle but still thr are queues to get an Associate Distributorship of the company.. this is b'cos people have the money but no job.. they do not want to sit idle in the home nor want their money to sit idle in bank.. now if i think from Capital point of view they are literally destroying it.. but they do not think so, for them work is their Dharma.. May the god fire more of these entrepreneurial spirits in India.. Amen

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