Can we create wikis for small business?

Is the purpose of a business to create wealth for the few who invest MONEY in it ? What should be the ultimate purpose of a business?

• I've had this question in my head for a while and wanted to see if someone out there had been thinking about this too. To give some context, here is an example. This is only a construct I've been using to structure my thinking and not an absolute. So, feel free to use any other construct if it helps you to put your thoughts together better. Consider a Family Owned Business - FOB (which most of the major businesses in India are). They are generally very closely held entities that are owned almost entirely by close knit members of one family. This family has put in their money to fund and create the business. As they grew, they hired many hundreds of employees to help them run their expanding business empire. Now, let us look at the compensation accruing to the 2 stakeholders in this case - the family and the employees. In the beginning, compensation is split quite fairly. The employees are paid their salaries and out of the profit they make for the company, the family allots themselves a dividend on their shares. Then, one fine day, the business has exploded and a bright young spark comes and talks to the family about an IPO. The family is intrigued. Things develop very quickly and they go public. The family sells a percentage of their shares and makes tons of money. The family, which invested MONEY in the business, gets paid twice essentially. Once from the dividends and twice from the premium on the shares sold at the IPO. The employees, who invested TIME and EFFORT in the business, get paid once. Salary. So, is the purpose of a company to create wealth for the few who invest money in it? If so, why are time and effort counted as a lesser investment than money which don't create the same kind of wealth for the employees? ESOPs etc may be used nowadays but in Indian FOBs, the ones who get the ESOPs are only the creme de la creme of top management and not the scaff and raff on the shop floor.

• Answer:

  Hi, People pursue business for many reasons.. There are the types who are just playing with money to make money.. In their case, what you say may be true... But there are many others who build a business to feel the satisfaction of creating something that people enjoy... There is a need called 'Self Fulfillment' need beyond the basic needs of Physical, Social, Ego etc... Secondly, why do employees not get as much as the founders? Simple.. Who took the risk? Who put in the money? Who worked for months / years without pay and by putting in own money? Who had the conviction to work day and night to make something come true.. Founders go through real tough times when one puts in all they have to build the business.. At times, you dont know whether or not things will work.... Still, passion and the goal to achieve satisfaction of having created something valuable keeps one going.. Lastly, the economy depends on people to create jobs... Should never undermine it.. Charity is like band aid.. Only real jobs can solve poverty issues..