Globalization which use to be a myth, especially to the developing countries is now gradually becoming our dignified reality. Businesses have to trust each other not minding borders and entrepreneurs are embracing the work from home culture which has changed the business culture. It then begs the question, doesn’t the fraud system of a country affect its entrepreneurs?
Globalization is no longer a farce as business transactions are no longer limited by borders. Businesses are evolving and technology is helping to change the modus operandi of our businesses.
Entrepreneurs have been playing the “start local, think global” card for years. Now, globalization and technology have availed us the opportunity to put this ideology to use. However, most entrepreneurs may not reap its fruits as the undignified reality of the fraud system in their countries may hinder them.
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Effects Of The Fraud System On Entrepreneurs
Some entrepreneurs are sitting on a ticking time-bomb. It’s just a matter of time before some entrepreneurs start reaping the dividends of their country’s unchecked insanity. The insanity of a system that idolizes fraud.
Trust is the oil that keeps the engine of trade and commerce going, especially on a global scale. It is a non-negotiable business ethic, that shouldn’t in any way be compromised.
Anytime you compromise the non-negotiable of a business transaction, you put other entrepreneurs at risk of future success with the global economy.
For any country’s entrepreneur’s blood to flow through the veins of the global economy; they have to rethink their ideologies. Countries need to stop glorifying fraud, especially internet fraudsters.
More so, ill-gotten wealth has to be questioned. They also have to clampdown on money laundering, and change the image of their country on the global stage. Measures have to be put in place to address the ills of the “live fast die young” generation who continue to kill the reputation of the country’s focused entrepreneurs who truly want to run their businesses on a global stage.
Furthermore, these bedeviling ills, if not checked will continue to plaque their eco-system as a people. The sky is the limit for most forward-thinking entrepreneurs, but the realities of fraudulent systems will always make the country’s boarders become the limit to playing on the global stage of commerce and trade.
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Lack Of Trust Stifles Globalization
The trust currency is the most valuable exchange. Nobody does business with who they do not trust. Trust has to be on the table of trade and commerce, especially on the global stage.
Enshrined in the business ethics of international brands is trust and integrity which are major factors in the psychology of selling, and must not be breached.
Lack Of Trust In Business Further Begs The Questions:
- How, then do the country’s entrepreneurs scale up?
- How do they create more jobs for their population?
- What direct impact will entrepreneurs have on their foreign exchange earnings?
- How do they get more fundings from Venture Capitalists?
These are questions entrepreneurs should be asking. Questions, whose answers are deeply rooted in the fabric of the country’s eco-system.
The impact of fraud and financial related crimes on any economy is enormous. Fraudulent practices and financial related crimes will always portray such a country in a bad light and as such foreign investors will be skeptical in doing business with them.
Also, this will directly or indirectly hamper the flow of Foreign Direct Investments (FDIs). In addition, fraud and related financial crime will have significant effect on their Gross Domestic Product, thereby affecting the country’s economy.
Recommendation On How To Curb Fraud
Auditors and accountants in organizations and financial institutions should be trained on how to carry out forensic investigation since the fraudsters are now sophisticated in their act.
Against the backdrop of glorifying ill gotten wealth, stiffer measures should be put in place for perpetrators of such crimes.
Also internal control systems should be strengthened to block opportunities that attract fraud perpetrators.
Benefits Of Globalization For Entrepreneurs
1.) Globalization has boosted output in the western economy and increased its foreign exchange earnings. It cannot be overemphasized how much of an impact it will have on any country’s economy.
2.) Globalization will enable firms to specialize and increase the intensity of R&D, innovation, and capital in their output.
3.) It will break the trade restriction barriers and increase access to fundings and foreign investors for startups.
4.) Globalization will break the gene of monopoly in many industries and sectors and make it easier for new companies to start competing with old incumbents.
5.) The trade sector will increase the number of people that it employs, both through exports and imports.
6.) Globalization will give consumers more ‘bang for their buck’ by reducing the high inflation rates in the economy.
7.) Globalization will increase real wages by lowering the cost of consumption.
8.) It will also improve the quality of management in firms and the working conditions of their people.
Entrepreneurship is already a challenging journey, so countries have to do their best to make the journey less stressful.
