Why Entrepreneurs Concern Themselves With Politics

Entrepreneurs focus on what they can control.

It's a mindset they had to ingrain in themselves. They hold themselves to high standards and rarely would you hear them blame others for their shortcomings. After all, if a problem lies with them, then they can readily solve it.

That is why some entrepreneurs frown upon politics, or at the very least, advocating their candidates.

Navigating the political terrain is a very tiresome task. You would also be focusing on what you can't control. It's beyond an entrepreneur's control to dictate who will be appointed/ elected to public office, or the platforms politicians will adopt during their tenure. 

As an entrepreneur, I don't shove my ideologies down another person's throat. Neither do I openly tell others who my political candidates are. 

But I firmly believe that entrepreneurs should be concerned about politics. 

1. Politics is, in itself, a business.

Don't kid yourself. As much as we are told that public office is a public trust, the reality is that it is run by politicians like a business. 

In order to understand the brewing storms overhead, it is important to understand each candidate's motivations. What are they willing to pay for what they want? And who is in a position to give them what they need?

If you understand what makes people tick, then you will understand why politicians change their loyalties like the ebbing tide. 

Instead of throwing a fit or directing your anger at them, then you would understand that the only way they can wield their influence is from a position of power. To climb to the top, they have to make concessions to other politicians, and even businesswo/men.

2. If you love to make money, then you should learn to understand the socio-POLITICAL forces that affect how we conduct trade/industry. 

Just because we focus on what we can control doesn't mean that we are cut off from external influences. 

These external factors include laws, norms, subcultures, and public hype.

You don't need to look any further. Take stock/crypto trading. 

The best way for you to earn a profit is to ride the pumps and sell during the crests. Cut your losses once a stock loses public appeal. 

If you aren't a trader, not to worry.

Imagine a "U".  Stock / crypto prices cycle up and down this "U". The peaks are what we call crests. How fast a stock price reaches the crest and sinks to the lows depends on a lot of factors.

In crypto, much of it is affected by public hype. Some investor groups intentionally orchestrate a pump-and-dump scheme. They schedule a time (in GMT) where investors around the world collectively buy a particular coin. Buy enough, and this will attract other investors into buying too. That momentum should cause the coin's price to reach whopping heights. 

When it does, they sell, or otherwise dump their bag of coins.

Observe any stock trader. You will find their heads burrowed in books, e-/newspapers, or at the very least, watching the evening news. If they smell the faintest whiff of a scandal regarding the CEO of a company whose stocks they own, they might just sell their shares to avoid greater losses.

In like manner, Forex traders have to keep abreast of developments in mining and oil. Purchasing and selling crude oil affects the purchasing power of fiat currency, namely US Dollars.

And yes, businesses, including SMEs, are affected by politics. Here are a few scenarios how that might happen:

• Political candidates who intend to increase the GDP might want to focus efforts on maintaining human resources within the country. They may discourage Filipinos from finding work overseas. A higher number of Filipinos within the country would mean a higher demand for basic commodities, like sugar or rice. If there isn't enough sugar or rice to meet market demand, the prices of these commodities will rise. 

            I'm sure you might have felt the sharp sting of going to the sari-sari store and then finding out                that your usual PHP50 bill can no longer suffice to buy a kilo's worth of rice.

        An increase in prices of basic commodities is likely to cause an increase in prices of other                        processed goods.

• Legislators you elect into office have the power to enact laws regarding Taxation. That means they can change the tax rates imposed (or not imposed) on imported goods, sales of land, or donations to family members and political parties. Need I say more?

• A real estate agent or a house-and-lot developer would need an official government proclamation (by the President or Congress) that would prove that the land they will be buying is public and alienable before they can proceed to buy and build houses atop it. 

• Politicians promise political stability. If they can't deliver on their promise, then that would mean a loss in foreign investments. Would you expect a foreign investor like Nike to build one of its branches in a country where there is great political unrest? 

            They couldn't demand workers to come to work if their employees' safety is at risk. Neither                    would they invest in building a plant/ facility or warehouse that can be easily looted by                            rebels or civilians.

I can go on about the list of examples why businesses are affected macro-economically by politics. But it's better that you imagine how your business is affected by it, even by a trickle. 

So, the next time you think that your business isn't affected by political agenda, reforms, or the stand a candidate espouses regarding an issue, think again. 

True-borne entrepreneurs minimize the risk of losses when undertaking a business venture. But this requires an understanding of the risks in place, including the politicians they elect into office.