China is known for its innovation.
We know how Alibaba, which started as an innovative e-commerce marketplace, helped Chinese sellers connect with national and international buyers within a few clicks of the computer.
Chinese government and its people saw the ray of hope for economic resurgence. The beginning of the 21st century saw China topping and amusing world charts in terms of business and innovation. China became synonymous with business, export-import, cheap labour and a land of endless innovations.
But there is something more to this story.
Though Chinese entrepreneurs and businesses grew and expanded worldwide, so did grew the Chinese government’s internal resistance and dominance. China wanted power and control of everyone. It dreamed of reviving and achieving its imperialism. It wanted its people to exercise their freedom if they adhered to their government’s point of views.
There are many Chinese nationals who raised and protested against their government – and they met with the same fate like – our very recent Jack Ma.
Also read: Truth Behind Gujarat’s Model of Development
The strange disappearance of China’s Alibaba
Alibaba is China’s, and probably the world’s, largest internet company. Alibaba’s founder, Jack Ma, inspired many Chinese entrepreneurs to explore the beautiful world of online business and boosted globalization.
As more and more Chinese entered this online sphere, Chinese businesses came to the global front and demanded the world to take the East seriously.
Jack Ma, as a responsible citizen, is hugely accredited to put China on global recognition and had milestone-aspirations for his country but his country did not seem to fully align with it.
The price you pay if you challenge an authority?
Jack Ma, through his ANT Group and Alibaba, had a lot of aspirations but it seemed short-lived now. The sudden disappearance of modern-age Alibaba has put the world into speculations whether the Chinese government is so intolerant towards criticism?
On October 24, 2020 at the Bund Finance Summit in Shanghai, Ma criticised China’s “pawnshop financial regulators and state-owned banks,” urging for a reform in his country and the country’s stiff regulatory banking system, because like he said, “China doesn’t have any financial system.”
He pronounced to build a healthy financial system, and not worry about financial systemic risks because the future relies on innovative development.
Innovation, according to him, comes at a price but one should not shy away from it. As a growing and world’s most populated country with an astounding younger population we must embrace and experiment with innovation.
Many of the world’s problems today, including China’s, can only be solved by innovation – and only if Chinese government allows for such business innovation, can China, along with the world, can develop and embark on new milestones.
Like the historic ANT Group’s IPO that was estimated to bid at US$37 billion – a number unheard, unimagined and unthinkable 5 years ago.
But it is likely that Jack Ma’s speech backfired and he lost a chance to get his IPO.
The Chinese government suspended ANT Group, highlighting fraudulent activities, and the most anticipated IPO never came to life.
And ever since Jack Ma claimed China is anachronistic – he is not to be seen or heard of from the public.
This raises a lot of questions: Does this mean that he has to pay this price for challenging the Chinese government authority?
Lot of companies are fully dependent on ANT and Alibaba updates.
How is it a socialist country when it doesn’t let its society be questioned freely?
And lastly: What has happened with Jack Ma?
Chinese businesses tools are being manipulated but the question is ain’t there anyone who can stop the government or tell them to work differently?
Aren’t they considering their future and those imperialism dreams?
Are powerful people really protected?
His last public statement was when he was speaking at the Bund Finance Summit at Shanghai.
In October, he criticised as well as tweeted against the government and mentioned how ANT and Alibaba Group can be revolutionary in terms of the financial industry.
Alipay for instance was very much appreciated and had billions of money flowing in and out daily.
As a billionaire what happened to Jack Ma’s protection?
Chinese government immediately stopped his IPO and it eventually made a lot of investors sleepless.
The only disadvantage which the Chinese government realised was that Jack Ma and it’s companies had the power to use the data of every individual payment history which could be used for Machine Learning.
This really made the Chinese government angry and they never want someone to have this kind of control like what Jack Ma was going to have in this financial industry.
Thus, how powerful you may be and have money but you are not being protected by the Chinese government.
This is because China is a self-centred country.
Chinese government was to have the power but ensure that its own people don’t get that facility.
Now we are clueless about Jack Ma and he disappeared all of a sudden.
Is Disappearance New Normal for Chinese People?
Chinese Tycoon Ren Zhiqiang had vanished and the reason was he spoke against Xi, their president. He spoke on how China could have much better handled coronavirus.
Jack Ma’s absence reminds us of many such great people of China who went missing.
The only reason being they voiced their opinion which was against the socialist, communist Chinese government.
Even during the coronavirus pandemic, China did not release the number of deaths and even hide the data about lost souls from the public.
This is the level to which they fell off.
China has also been accused of data privacy issues and companies like Huawei are already on the radar.
Will these imply that businesses have an unforeseen future?
Will businesses thrive in uncertainty?
Let’s be honest.
Imperialist ideas won’t take the Chinese ahead.
The US also has threats from China.
We definitely don’t like the idea of Chinese billionaires going bankrupt because of such uncertainties.
Let me tell you this is not new.
So does the Chinese government have plans to become a superpower?
How does the Chinese Government plan for the next decade?
Let’s look at this from 2 different major points:
- Economy point of view: China wants to rule the world and by the end of 2030 they want to be a superpower. China aspires Mandarin to become a widely-spoken language and would like it’s acceptance to be implemented globally.
- Business point of view: Because of losses due to the pandemic, many business owners got an opportunity to get into hand sanitizers and mask businesses. So, business viability wise, China is way ahead. They can do mass production quickly at the cheapest cost.
This implies the Chinese government will work smart to counter everything.
They want to be a global leader like America. That’s the reason how this Chinese dream came into the picture (taken ideas from American dreams).
By not harming other countries the Chinese government can become the next superpower like America in the next decade itself.
Territory acquisition is definitely a method which no other country would appreciate from the Chinese workforce.
We definitely need to learn about the Chinese imperialism and its reality.
We definitely should have the clarity.
Is Chinese Imperialism real?
This is a very important question as to why the Chinese government behaves in a certain way always while dealing with neighbouring countries. China’s policy of invading countries is new to none and it has been practising since centuries.
Yes, Chinese imperialism is real, but it has a limitation in modern-age.
The trust factor is low, since it’s harmful to society. There is also another reason why Chinese people are seen differently by the masses.
But let’s be objective: It’s not the people, rather the government, who bring such massive policies that impact the individual lives of business owners in China.
Let’s take China’s pride – Alibaba, again into consideration. How Alibaba survived and thrived in the pandemic is truly remarkable and needs a case study of its own.
Now that it’s been months and we don’t know about Jack Ma, a lot of questions arise:
What’s the future of Alibaba
Why did the Chinese government blacklisted the IPO?
All pivoting to the same root-question: Where is Jack Ma and is the Chinese government responsible for his disappearance?
The truth about China using Chinese businesses as its tools
Let’s summarise the truth which we discovered about the fact that Chinese businesses are used as tools!
There are a lot of questions you may have.
Lets deep dive into the what we learnt from Chinese government and its implications:
- Following communism is only for the Chinese government and not for individuals who aspire to run global companies like Alibaba. Innovation is the stepping stone of a successful business. It shouldn’t be taken away from anyone.
- Chinese dream narrative is not true but it is how it is. Chinese people are being asked to follow the government strictly as chinese government is dominating and they want their citizens to abide by the rules.
- A passion for innovation can help Chinese apps owners to push globally. All they need is persistence and patience. Every market leader’s idea is going to be adopted by followers and other vital brands globally for sure.
- Business’s existence and survival depend on how the business owners have a fair vision and execution of their strategies. Better points of differences and added value propositions will help startups to survive.
- Both from an economic and business point of view, the Chinese government is always ready to face the hurdles. They are smart in their goal setting.
- While Chinese imperialism is real but there is a limitation attached to it.
People have lost trust in Chinese because of the so-called harsh policies by their government.
- For companies like Alibaba to survive, they need to share knowledge and incentivize other country researches to grow their platform 10X or even more.
How has China impacted the global market?
Just to become a superpower by forcing its people to abide by the stringent rules, China has impacted the global market to a great extent.
Lot of potential investors are forced to stop the dream of owning the equity shares which Jack Ma had planned to launch.
India for instance has a lot of investments done by Alibaba and its partners.
Due to his absence and no clarity of the future, the global market has impacted and there are a lot of startup owners who are clueless of their next round of funding.
There are tons of challenges which need to be addressed in the future.
India is rooting for Jack Ma: Why are we so dependent on Chinese businesses?
You may be asking why?
This is because many firms in different countries, including India, are dependent on Jack Ma.
Alibaba is a major player in the market for most of the startups in India including Zomato.
Paytm and Bigbasket also have a lot of investment from ANT Group and they definitely are looking to know what’s happening behind the scenes with China and Jack Ma’s disappearance.
Rumours are also there for Alibaba to be added to the blacklist by the US Govt.
So we need to know for sure where Jack Ma is and what are their future plans?
The present incident clearly proves China is really an “anachronistic country” and does not entertain opposing points of views – even from its own citizens!
It’s no doubt China aspires for superpower but can China really be the superpower-country?
China’s mission to a superpower country
The challenges to overcome hurdles for Chinese government include not finding common ground for collaboration with shared beliefs with neighbouring countries.
The good part here is the realization of mistakes and not repeating them could prevent World War III; which is often cited by historians as a means to validate who would emerge as a superpower.
China is ambitious – we all know that. It’s business goals are the way to achieve (and revive) its imperialist way of life, but how valid it will be in today’s time is for all of us to see.
Are Chinese imperialistic dreams legit?
Chinese imperialism and dreams are definitely not legit as the government is not itself following communism.
We have seen how Jack Ma and his ANT group was treated. Infact ANT Group, Alibaba and its subsidiaries had a lot of aspirations to every credible organization in the world.
But due to suppression by the Chinese Government, it’s very difficult for them to survive. Breaching data privacy through its addictive business tools and adding territories is not going to make China a superpower.
As much as the global citizens’, Chinese entrepreneurs’ lives and businesses are in threat.
What do you think? Who is going to take the accountability for the damage being done to such successful businesses?
If something has really happened to Jack Ma, within his country – by his own government, it really keeps us all: Is China not open for business innovation? What length will China go to realize its imperialism? Are powerful people really protected?
Private Company vs Public Company
The difference is more than literal
Do you know why you cannot buy shares of a private company?
So, can you only buy shares of a public company like ONGC, IRCTC, Indian Oil, etc.?
Then why are the shares of private companies like Infosys and Wipro listed on the stock exchange? Are these private companies to begin with?
Do you know a private company cannot have more than 200 members?
OMG! Somebody please answer all these questions.
Yes, the difference is more than literal.
Let us have a cut and dried distinction between a private and a public company.
Definition of Company
Let us take the bull by its horns and get the definitions out from the textbooks.
Companies Act 2013
A company is a legal entity that is formed by different individuals to generate profits through their commercial activities.
Majorly, a company can be classified into two strands- public company and private company.
Before knowing the difference between a public company and a private company, it is of utmost importance to check on the definitions of a public company and a private company as per the Companies Act 2013.
According to the Companies Act, 2013, a “public company” is a company which—
(a) is not a private company
(b) has a minimum paid-up share capital of five lakh rupees
According to Section 2(68) of the Companies Act, 2013, private companies are those companies whose articles of association restrict the transferability of shares and prevent the public at large from subscribing to them.
According to the Companies Act 2013, a public company has to mandate all legal proceedings which are not mentioned in the definition under Section 2(68) of the Companies Act, 2013, which pertain to a private company.
Difference Between a Public And Private Company
Let’s look at all the major pointers which differentiate a public Company and a private company.
Minimum Number of Members
In a public company, a minimum of 7 members is required to form a company; whereas a private company requires at least 2 members to form a company.
Maximum Number of Members
In a private company, a maximum of 200 members can be present to form a company; whereas in a public company there is no such restriction on the maximum number of members to form a public company.
Invitation To Public
A public company can freely invite the public for subscription, which implies it can issue a prospectus. On the other hand, a public company is prohibited from inviting the public for its share capital, which means a private company cannot issue a prospectus.
Number Of Directors
In a private company, a minimum of 2 directors is required; whereas in a public company, a minimum of 3 directors is required.
Transferability Of Shares
There is no restriction on transferability of shares in a public company; whereas in a private company there are complete restrictions on transferability of shares, through its article of association.
A public company must disclose the annual financial report; whereas for a private company, there is no such obligation to disclose their annual report to the public.
Index Of Members
In a public company, it is mandatory to maintain an index of all members in the company, whereas in a private company, it is not needed to maintain the index of its members.
The minimum paid-up capital for a private company is Rs. 1 lakhs; whereas the minimum paid-up capital for a public company is greater than that of a private company. It is Rs. 5 lakhs for a public company.
In case of a public company, it is defined that total managerial remuneration cannot exceed 11% of net profits and in the case of inadequate profit, the maximum amount to be paid is Rs. 87,500. Whereas in a private company there is no such restriction on the maximum cap for directors’ remuneration.
Quorum For Meetings
In the case of a public company, it is mandatory to have a personal presence of five members in a meeting to constitute quorum, whereas in a private company, it requires a minimum of two members to maintain a quorum for meetings.
Below is an array with a list of pointers that differentiates a public company and a private company.
|S.NO||BASIS||PUBLIC COMPANY||PRIVATE COMPANY|
|1||MINIMUM MEMBERS||AT LEAST 7 MEMBERS||AT LEAST 2MEMBERS|
|2||MAXIMUM MEMBERS||NO MAXIMUM LIMIT||CAN’T EXCEED 200 MEMBERS|
|3||INVITATION TO PUBLIC FOR SHARE CAPITAL||POSSIBLE WITH THE HELP OF PROSPECTUS||CAN’T INVITE PUBLIC FOR ITS SHARE|
|4||NUMBER OF DIRECTORS||MINIMUM OF 3 DIRECTORS||MINIMUM OF 2 DIRECTORS|
|5||TRANSFERABILITY OF SHARES||FREELY TRANSFERABLE||RESTRICTIONS ON TRANSFERABILITY|
|6||ANNUAL REPORT||COMPULSORY TO SUBMIT ANNUAL REPORT TO ROC||NOT A MANDATE TO SUBMIT ANNUAL REPORT TO ROC|
|7||INDEX OF MEMBERS||MAINTAINING INDEX OF MEMBERS IS MANDATE||NO NEED TO MAINTAIN INDEX OF MEMBERS|
|9||DIRECTORS/MANAGERIAL REMUNERATION||CANNOT EXCEED 11% OF NET PROFIT||NO LIMIT / NO RESTRICTIONS|
|10||QUORUM FOR MEETINGS||5||2|
“The best investment is in the tools of one’s own trade.”- Benjamin Franklin
It is always better to be well versed with the tools of one’s own trade and the management of the inflows and outflows.
An avid tradesman associates their trade to generate profits and simplify the trade complexities by forming a company. These differences stated above lay down the basics of companies and form a guided path for a better approach to start with a company.
Here Is Why Entrepreneurs Should Go Out and Start Networking
Don’t hide behind. Face your circles. It’s high time you start networking.
We have often watched Hindi films where protagonists aspire to be a rich men as a kid. And hence they start thinking of different business ideas to be successful.
Well, this happens in reality as well. Who doesn’t dream of starting their own business one day, right?
However, business is not as easy as eating a piece of cake. And no, you don’t need to have a Ph.D. or an MBA degree to start a business.
You just need to have clarity of thoughts; about the business idea, sales and marketing, and most importantly, NETWORKING.
Today, everyone needs everything. The circle of needs and demands has become wider. Everything in entrepreneurship is becoming more interconnected. Just like the Past, Present, and Future in the web series “Dark”.
Networking is the one and only way to get to know what’s around you. From having conversations with your parents to your fruit vendors or even your house helps, you never know what brings you to the peak of your business.
We will share our two cents to convince you enough to go out and start networking if you are a budding entrepreneur. Pardon us if these two cents become 4 or more, but you will definitely not regret reading this till the end.
Entrepreneurship And Networking
The first thing that any budding entrepreneur does, while starting their own business, is to spread the word about it.
The first set of people that they talk to are their family, friends, and even banks (for financial purposes). Although these efforts may or may not materialize into something fruitful, you learn a thing or two about the ABCs of networking.
Networking is one way to get clarity of thoughts about your business. It’s like building a blueprint of your business in mind. You not only know the industry better but also get to know the loopholes and healthy shortcuts that will save time and increase efficiency.
In the ABCs of business, “A” stands for “recognizing the needs and expectations of people around you.”
Networking is the first step to recognize the gap between demand and supply. It’s similar to providing electricity to those areas with no light, and the idea and motivation behind it.
So now that you are still reading, let’s go further and discuss the importance of networking in entrepreneurship:
Builds Trust And Respect
You may or may not earn money every day from your business. But once you earn trust and respect in the market, there is no way that people will forget you easily.
It’s a fact.
Earning money is easy.
But earning trust and respect takes more effort.
Networking with your business peers or veterans will get you noticed. Initially, you won’t find them paying heed to you, but once they do, they are never going to leave you.
People believe in aggressive marketing to increase sales and business. But try aggressive networking instead, and there will be no stopping for you in the future.
Remember, making friends in schools and colleges? It’s a similar situation in entrepreneurship, too.
Going social is one way you get confidence in networking with people in the future.
Did you ever come across someone who would go to a restaurant with you and start talking to the waiters and receptionists?
Well, you may feel awkward about it, but that’s their first step to get to know the surrounding market.
Start from a party that you attend, be it a family party or a party with friends. Join a group of your choice and listen to the conversations. Once you get the grip of it, start by putting forth your views and then turn it around to your business idea. This may look boring and slow, but slow and steady will definitely win the race.
Today, there are many millennial-made apps, like Bumble, LinkedIn, etc. that encourage people to build an entrepreneurial network in any industry of their choice. Start posting. Start swiping right to the connections that interest you.
For that matter, you can even join dating apps to build professional connections. Your first conversation about your business will be a good ice-breaker (You’ll thank us later for this pro tip).
Don’t Be Selective In Your Own Circles
A very common mistake that most “choosy” or “picky” people do, is being very selective in deciding who to network with.
Today, almost all industries are interconnected. A top-class hospital will always need catering or food services for their staff and patients. A hotel will always want to have options for good clothes vendors for room and restaurant linen.
So if you limit yourself to one or two industries, and sideline others, chances are that you may lose a lot of opportunities.
Expand yourself. Even if you are not sure about it at first. Take that first call that says “our budget is low”, when you know that you have a different area of expertise to explore.
Your Shyness And Fear Will Only Put You Behind The Race
Entrepreneurship requires you to go “out-of-your-circles” more than going “out-of-the-box”.
You are likely to face uncomfortable situations all the time. You have to become an extrovert if you are a highly introverted person. You can’t hide from people who you dislike. You can’t say goodbye to those people whom you are done working with.
Your fear, your shyness will start putting you behind the race of a successful entrepreneur.
You have to be outspoken. Pave your way and lead it too. Take others along the way and build a huge business “family”.
Remember Abhishek Bachchan in the film “Guru”?
No, you need not be exactly like him, but you are expected to know why to be like him. And take your own decisions from the existing lessons.
It’s A Long Road That Will Definitely Lead You To Your Vision
Networking is a continuous process. You don’t stop after a certain level of achievement.
Starting a business is not enough, you have to keep it running. And for that purpose, you may need to explore your potential networks.
It’s often expected from budding entrepreneurs to network only with business-minded people to start and run a business successfully. What they don’t realize is that business is made by people, for people, and with people.
So start networking – whether virtually, or face-to-face. Get that business idea in place, get started with your plans, and you will surely reach a place where you can write “successful entrepreneur” in your social media bio.
2021’s India Is Atmanirbhar: 10 Desi Unicorn Startups
With 10 startups joining the unicorn club in just 4 months of 2021, is India moving towards Atmanirbhartha?
The Many Firsts of a Fantastic First Quarter of 2021!
The Indian startup ecosystem got an impressive start in the first quarter of 2021. As per Venture Intelligence, Indian startups witnessed the highest investment in two years, and the capital flow was $4.2 billion!
This is not all.
Most of the startups saw a three-fold hike in valuation in their recent funding rounds. And among these, 10 got valued at more than $1 billion.
And hence, the Indian startup ecosystem received its new set of unicorns.
The unicorn story of 2021 is unique.
Because it is the one with many firsts.
The first health tech, social commerce, e-pharmacy, and infrastructure technology that made its way into the unicorn club.
According to the NASSCOM report, India will have 50 unicorns by the end of 2021.
But many industry experts and research firms believe that, if the current rate continues, India would easily surpass this number.
Here is the list of 10 Indian startups that gave 2021 a pleasant start.
- Digit Insurance
- Five Star Business Finance
The Beginning of Unicorn
If you know any entrepreneur personally, you may have an idea how difficult it is to raise the funds for a startup. It is definitely not a cakewalk.
The fundraising usually begins with family and friends. And as the company expands, it approaches angel investors, and then goes for the venture capitalists for the fund acquisition.
Even though it is a tough task for any startup to gain the investors’ confidence, some horses pass this race and achieve the unicorn tag.
For those who are new to the concept of unicorn, it is a startup that has a valuation of $1 billion or more in the venture capital industry. And Aileen Lee, the founder of Cowboy Ventures, coined the term ‘unicorn’ in 2013.
And since then, startups are continuously striving to attain this prestigious status.
India Didn’t Have a Great Start
When Aileen Lee coined the term ‘unicorn’ in 2013, the United States had 39 unicorns.
You may ask, what about India?
There was only one company called InMobi, the mobile-advertising services provider, that could make it to the unicorn club.
India was nowhere closer to the US in the matter of unicorns. The reasons were many:
- Limited funding
- Inadequate infrastructure
- A plethora of social and cultural challenges
- Lack of talent
- College students found entrepreneurship unappealing compared to the management jobs in large IT firms.
- The aspiring entrepreneurs often got rejected by the prospective brides and their families.
India Slowly Picked Up the Pace
Even though India’s unicorn story had a not-so-brilliant start, the current scenario looks promising.
As per Venture Intelligence data, there were only 10 unicorns until 2018, and since then, there has been the addition of 28 unicorns.
For an Indian startup, on average, it would take up to 8 years to turn into a unicorn.
India’s oldest startups, like Naukri.com, MakeMyTrip, and Justdial, which began its operation prior to 2005, took 15 years to achieve the unicorn title.
But this period has shrunk in recent times.
A recent report by Orios Venture Partners shows that the newer technology firms are hitting the billion-dollar mark in less time than their older counterparts.
The younger enterprises such as Swiggy, Rivigo, Razorpay, and Unacademy joined the unicorn club in 5 years on average. Whereas, Udaan, Ola, Electric, and Glance took just 2.4 years!
What could be the reason for this transition?
As per the Orios Venture Partners report, the reason behind the younger startups turning unicorn sooner could be:
- The prior entrepreneurship experience of the founders of these companies
- These founders know how to secure the funds more efficiently
- The growth mindset
There are two other reasons the investors from India, and all over the world, are backing the Indian startups with their funds:
- Indian startups leveraged the changing consumer behavior and quickly tweaked themselves to satisfy the needs of the customers
- These companies started functioning on the fact that “Focus on the market and the customers will ensure your growth”
Will ‘Atmanirbhar Bharat’ Soon Be a Reality?
India’s honorable Prime Minister, Narendra Modi, raised a clarion call to the country to be self-reliant, aka Atmanirbhar in all senses.
He also outlined the five pillars of Atmanirbhar Bharat:
- Demography, and
You may ask, how startups can help in making India self-reliant?
The Indian startup ecosystem had a slow and steady evolution from one sector to the other, ranging from IT/ITES to e-commerce, deep technology to hyper delivery networks.
Today, startups also have the most favorable conditions to survive and flourish, starting from the funding, development of regulatory infrastructure, global mergers and acquisitions, the influx of global investors to internationalization.
Do you know what brought this revolution to the world’s third-largest startup ecosystem?
It is the government’s mission to get as many entrepreneurial stories as possible through its programs like Startup India, Stand up India, Digital India, and Vocal for Local.
And the unicorn forms one-tenth of new industries coming into existence every year.
The increase in the number of tech unicorns is driving the investors’ interest in India’s startup ecosystem.
According to a report by NASSCOM, the startups in the technology field alone have created 60,000 direct jobs in 2019.
These data show that, if more startups come into existence, and get support from the investors and from the government, India could see a greater spike in job opportunities.
Atmanirbhar citizens make Atmanirbhar Bharat, don’t you agree?