I was feeling bored on a weekend and wanted to catch up with some of my PG mates. I was lucky enough to get such a great set of frnds in both (UG and PG). So finally 4 of us planned to meet and decided to go to Besant nagar beach. One guy works for a energy company and the other two guys work for a start up consulting company.
So as usual we had lot of useless talks pulling each others legs and then suddenly started discussing economics.
The guy who works for energy company said, he bought the Satyam shares for 9 rs and today it was around 40 rs. Other friend is an expert in finance but unfortunately works in a job where there is nothing to do with what he is expert in but still has a lot of responsibilities as the company is a start up. He told him to sell off the shares immediately as once L&T withdraws then the shares would collapse, but the energy guy said he is not bothered about the returns as he bought 100 shares without expecting anything out of it. He said that before any investment we have to do two type of checks qualitative and quantitative checks. If any investor had done a qualitative check would have never invested in Satyam.
The consulting guy suddenly asked a simple question to everyone. If every one loses the job what will he do look for new job or become a entrepreneur. Out of the four only i said i will look out for other job. The other 3 said rhet wud either start a nrw business and continue doing their family run business. One thing the guy said still haunts me. Everyone should have a back up plan. ( I am still thinking but not successful)
The consulting guy started recollecting economic fundas, stated by Prasanaa Bhatt who is a very famous professor in my college. Initially we used to get sleep in his class due to his slow method of teaching, but with his knowledge he drove every one with something or other one can never forget in his lifetime. Nobody can ever teach economics like that. Some of his punch lines are
"Price is always determined by the customer. U can only calculate the cost."
Prasanna bhat used to explain about Keynesian theory. Keynesian theory works at all walks of life.
Keynes argued that the solution to depression was to stimulate the economy ("inducement to invest") through some combination of two approaches :
- a reduction in interest rates.
- Government investment in infrastructure - the injection of income results in more spending in the general economy, which in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment.
Its very much true in our case, government is cutting interest rates and government is investing heavily on infrastructure. People have to start spending for the economy to get out of depression. But its natural not to spend when there is no guarantee for your job.
Soon after that one of my close frnd called me up and asked me to think of some business idea where he can invest in. He is working in one of the safest and respected IT co in india.
He also got a chance to visit UK but still he wants to start a busines of his own.
Then i realised that there are so many ppl around u who are very serious in starting a new venture and are not worried even if they start a small ice cream shop or hotel....
At this time if government provides support and encourages we can see a lot of young entrepreneurs in the making in this period of recession.......
On a lighter side, most of the bright wanna be entrepreneurs want to start a hotel ........
India is one of the larget untapped markets, if the goverment starts injecting money in new development projects like
Automation of government organizations like post offices, transport offices, election offcie, ration, passport office ( its actually happening now tcs has bagged the order for IndiaN passport services) etc..
By making the procurement transparent and genuine.. corruption can be reduced....... India is a country where the politicians know all the opportunities first hand and get the best out of it by bribery or other means.. they are the leading business men in the country...
And if you ask me ,,, i dont even have 1 % of entrepreneur in me... and One stranger (an old man in a Coffee Day ) said that i will become a successful business man earning millions of rs. I was with 2 of my frnds,and i did not even talk to him and it was my first and last meeting with the old man,, he called me alone and said this. Even now 2 of my frnds keep telling me that dont forget once u become a millionaire..
But i understood, that the old man is a retarded fellow :)
