Who runs business – An entrepreneur or a consumer? - Instablogs
Who runs business – An entrepreneur or a consumer?
Manish , vadodra: Aug 18 2008
Made Popular Aug 19 2008

Who runs business – An entrepreneur or a consumer?
Answer looks simple while stating that an entrepreneur runs the business and the consumer is the source of business. But the dynamics of business have been always unknown.

Let us look at the simple question - Is really a business for the profit of entrepreneur or creating value for a customer?

When we look at the practical evidence outside us, we get some mixed feeling. There are many products in the market, which may not have any value to the customer, than also they are highly charged successfully. There are many companies, who never think beyond their personal gains, than also they are growing with jet speed. This reflects the presence of imperfect market.

Really the question is of trade-off and circumstances? Tradeoff is the simple mechanical formula for finding the optimal point between the profit margin and the customer value. What profit margin a consumer is ready to give can be known from the intensity of his needs and his ability to fulfill it.

You may find hard what the circumstances mean. It really identifies the position of the customer whether he is able to speak or not. Customers are human being. They lack the resources like time and money that needs to be given for clicking the right products. Again they may be going with good or bad time that greatly reduces the decision making power of the consumer. When this happens, insensitive entrepreneurs can take the undue advantage of the poor conditions of consumer for the short time period that may become everlasting.

So market perfection is really a goal that can only be obtained when the consumer will have time, money and freedom. Until that time an entrepreneurs will have an added advantage to run the business with their own terms and conditions while ignoring the pains of consumer.

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1 Stars
Rajesh
chennai, India
very thoughtful article. In reality, every business is run for the profit of the entrepreneur. Value to the consumer comes next.
0 Stars
Samir
Shimla, India
Value of consumer and profit of entrepreneur should gp hand in hand but that is not a conventional approach followed.
0 Stars
Samir
Shimla, India
Entrepreneurs are concerned only about their own profits these days.
1 Stars
Jeffrey
Singapore, Singapore
An entrepreneur is the one who runs the business keeping in view of the consumers' tastes and demands. A consumer is the one who is the target of the entrepreneur for his business. There is no ambiguity in that. A consumer cannot make an entrepreneur take decisions but his trends would shape an entrepreneurs decision.
1 Stars
Manish
vadodra, India
Good comment. Thanks.
1 Stars
Prince Campbell
New York, United States
I think the customer comes first. If you do not create value for the customer, you don’t have a business.
1 Stars
Leena
Kolkata, India
The entrepreneur runs the business. He makes the consumers aware of their needs and then creates a market for his products. So ultimately, it’s the entrepreneur and not the consumer who is runs the business
1 Stars
Manish
vadodra, India
Please, read the article again. You are missing the idea behind the article.
Thanks for your valued comments. This comments are source of my inspiration.
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