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  • Category: Miscellaneous

    Why our start-up entrepreneurs are eager to sell their enterprises to foreign companies?

    The Flipkart-Walmart deal created fears in the minds of our retail traders. They started agitating against the deal and are demanding the Government to scrap the deal. Flipkart is a classic example of success stories of our young entrepreneurs but it was sold to Walmart. Many start-ups which are successful in India are finally being sold to some foreign companies except one or two IT companies like Infosys. If Facebook, Google, Amazon, etc were born in India, even they might have been sold to some foreign companies by this time. Why aren't our entrepreneurs taking much risk to expand further? Why are they eager to sell their enterprises to others?
  • #641159
    The overall motive behind any business is the money & if anyone has been offered with big deal than the offered can't be ignored. Taking another instance wherein we find the Walmart comparatively big company in comparison to the Flick art offering the best of quality products in the minimum of price tags along with other facilities will make the survival of smaller companies like the Flick art at risk.

  • #641161
    When an idea is being envisaged with a start up, and if the business clicks, then it becomes famous instantly. But as the company grows, so are the problems associated with it. That means massive expansion has to be made for that huge investments has to be done. Some are successful to pump in and many have apprehensions as to the further success of business as cut throat competition also enters the scene and thus the big companies who are well known for take overs would enter the scene and buy the start ups. This is what happening all these years and it is the fact to be believed.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #641174
    The selling may be due to different reasons. Once the concept worked the expansion is to be taken up. The expansion a start up company can do is no way comparable to the giants like Walmart. So the amount Walmart can invest will be more than start companies. The amount offered by the Walmart to the start up company may be higher than what returns they will anticipate for the next decade. So the start up can't say no to the offer. Once they get that money they will make another small company and show the results and again they may get a huge money by selling that concept. So the entrepreneurs may get much more money by selling the second concept also. Now their business is to make a small company realise a concept and sell others for expansion. I don't see anything wrong as they are taking safe decisions as they will not become bankrupt.
    always confident

  • #641204
    There is a lot of competition in the business world and due to technological advancements the successful businessmen are switching from one business to other very swiftly.

    The enterpreneurs can not take the risk of not able to meet up with the dynamics in the markets and prefer to cash in their quick profits and say good bye to the expansion and sustaining of their own founded business.

    Starting a business and take it to a level is one thing but sustain it in a global market is not the easy thing in the present scenario. So most of the successful enterpreneurs are happy to get a good offer for their business.

    Knowledge is power.

  • #641206
    The answer is very simple and straightforward. The entrepreneurs sell their start-ups to foreign companies because they get better price. When Indian companies will start offering a better price, the start-ups will be sold to Indian companies only. There is no mystery involved here.
    Beware! I question everything and everybody.

  • #641215
    But Partha, the foreign companies who are looking for amalgamations with Indian company wont pay high price just like that. They verify the locus standing, the reputation and acceptance of their products in the market and profit orientation and other things before zeroing on the deal.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

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