Question

Why do the authors say that there is a need to rethink the profit maxim? What is the entrepreneurial imperative? Can you give an example?

Answer 1

The entrepreneurs who say that there is need to rethink the profit maxim are right from their perspective. According to me, solely not looking at profit but to have a eye on your company growth, relationship with your employees, customer satisfaction, clients interaction are very much necessary. If you have good customers who rely on you for your services will give you much profit in the long run. Entrepreneurs are smart enough to understand that loosing long run profit for short run is very risky for your business. If you keep on growing in short term, your long term would be prosperous for your company.

If you look for profit maxim in short run you would try to save every penny you could save by providing less efficient work to your clients, hiring less employees than necessary, giving less perks to employees. These things could have disastrous impact on your business, your trustworthy employees would never stay with you for long run, your clients will run away.

New age startups which take cares of these things do much better than others who do not. Never forget the rule that "MAKE YOUR CLIENTS HAPPY, THEY WILL MAKE YOU HAPPY IN RETURN"