Do Business and Politics Mix Well?
Introduction
There is a strong relationship between politics and business, and they have a direct or indirect influence on each other. The answer to the question of whether business and politics mix well is no. In this article, some of the relationships between the two will be confirmed by some of the ways they tend to impact each other.
According to Alexander Djerassi, who is an entrepreneur and also a foreign policy expert, there are various reasons one starts up a business, which mainly depend on the targets, profits, and general goals of the business owner. He states that the objective of the business is carried by the proprietor and what they want to accomplish. This cuts across the sales, the benefits, as well as the general income from the business. However, these factors may be affected by the political climate and thus have a great impact on business at large.
What impact does politics have on business?
When an investor engages themselves in politics while at the same time having their business in operation, their thinking may tend to be clouded, and as a result, there is an effect on their emotional and logical thinking, which at times can affect the decision-making process. The results would mostly be poor decision-making and would impact the objectives and goals of the business. Politics frequently interferes with the macroeconomic approach, as well as the economic stability of the country in which the business is conducted. This usually affects the production and prices of goods and services, which harms the operations as well as the business objectives. This is very evident from what was experienced during the great depression.
Reasons why politics and business do not mix well?
-Income reduction
First, when an entrepreneur engages directly in politics and tries to publicly showcase their political beliefs, he or she stands in a position to lose some of the clients who have different ideologies from the one he or she has. In addition, when politics is also allowed to happen in the business premises, for example, some customers may get irritated and feel uncomfortable, and in such a case, even the loyal ones would be lost. Additionally, politics has an impact on the general economy, and when the process is affected, the impact is felt in the demand and supply of goods and services offered. As a result, production would be affected, thus affecting the sales and maximization of the investments made, resulting in losses instead.
-Collapsing of the business
In most cases, business mixed with politics tends to collapse. This can be supported by the factors explained above, which include losing customers or general sales. When a substantial amount is lost, then the result has affected the stability of the business and, in most cases, leading to its collapse.
Conclusion
In most cases, an entrepreneur, like any other citizen, may be tempted to have their views relating to politics in the public domain. This may tempt them to use the business platform. However, this may have a financial impact on the business. Unless the business one is running is a political one, it is always advisable to avoid mixing business with politics, as this would have more cons than pros associated with it. As per what Alexander Djerassi states, the entrepreneur carries the objective of the business and knows what he or she wants to accomplish. It is, therefore, advisable to give these goals priority before politics to keep them alive.
