Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
I do think this explains why VAT evasion is so prevalent among small businesses in Spain.

A sole proprietorship or family business is a control fraud waiting to happen. If one person can control what information gets passed to all others there is not even a requirement for a conspiracy. As one successful small businessman who grossed over $10 million a year once told a friend: "Sometimes I just have to close the door and do things that I never tell anyone else about."


"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Apr 26th, 2011 at 12:42:09 AM EST
[ Parent ]
ARGeezer:
A sole proprietorship or family business is a control fraud waiting to happen.
And, so, in countries with large informal sectors or underground economies, where enforcement is lax or resource-poor, a criminogenic environment is created in which you're considered stupid if you don't steal from your employees, providers, customers and the taxman.

I have lately thought that, if ordinary small businesses are control frauds where poor performance and graft by the owners are normal, it cannot be too hard to run a business profitably. If you don't steal from your own business it should be easier to keep it running.

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Tue Apr 26th, 2011 at 05:27:31 AM EST
[ Parent ]
But they don't steal from their business. They steal from everybody else's business. That's sorta the point.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Apr 26th, 2011 at 07:48:28 AM EST
[ Parent ]
See ARGeezer's comment. That's sorta the point.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Tue Apr 26th, 2011 at 10:40:38 AM EST
[ Parent ]
When the contracting company for which I worked more than 17 years was contemplating turning itself into an Employee Stock Ownership Plan company I was discussing the negative attitudes of some of my fellow employees with the ESOP advisor. The problem was that the four partners were seen as having appropriated company property for personal use. All four had extensively and expensively remodeled their homes and things such as new electrical service panels had gone through the warehouse even though we did not use such products on any of our jobs. I just figured that that was something that would stop after ESOP conversion, but others were more skeptical. The advisor told me: "The owners of small companies always look on the company as their personal piggy bank." In this case all four were expected to only loot about the same amount each.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Apr 26th, 2011 at 10:38:20 AM EST
[ Parent ]
Possible to state {some/most} small business owners see the business as an extension of their ego?

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Tue Apr 26th, 2011 at 12:11:54 PM EST
[ Parent ]
I've worked in two closely held firms definitely more in the Medium than Small Enterprise category, but still it was apparent that their internal functioning strongly reflected the personality of the owner/managers.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Tue Apr 26th, 2011 at 12:16:45 PM EST
[ Parent ]
That's my experience as well.  However, spit in one hand, hold anecdotal evidence in the other, and decide which is "more real."

IF it is accurate we've got a fact of no mean importance.


She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Tue Apr 26th, 2011 at 12:33:39 PM EST
[ Parent ]
"fact" s/b "insight"

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Tue Apr 26th, 2011 at 12:34:31 PM EST
[ Parent ]
Recommended viewing: Gordon Ramsey's Kitchen Nightmares.

Ramsey travels the US and helps restaurants on the brink of bankrupcy. 9 out of 10 times the problems are well known to the staff but the owner is to stubborn to listen.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Wed Apr 27th, 2011 at 03:42:07 AM EST
[ Parent ]
A swedish kind of death:
Ramsey travels the USmostly England and helps restaurants on the brink of bankrupcy


Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Wed Apr 27th, 2011 at 04:19:27 AM EST
[ Parent ]
Either it tells you what you need to know about my observations of what goes on at the telly, or Swedish tv chooses the american episodes on purpose. After all Amazing race is marketed at swedish tv as "see americans who could not find Europe on a map of Europe make fools of themselves" and considering the number of seasons they have shown, I guess that is a succesfull strategy.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se
by A swedish kind of death on Wed Apr 27th, 2011 at 05:58:50 AM EST
[ Parent ]
Oh, right: Kitchen Nightmares - Wikipedia, the free encyclopedia
Kitchen Nightmares is an American reality television series on the Fox network, in which Chef Gordon Ramsay spends a week with a failing restaurant in an attempt to revive the business.[1] It is based on the British show Ramsay's Kitchen Nightmares.


Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Wed Apr 27th, 2011 at 06:00:19 AM EST
[ Parent ]
They tend to see it as something they own*. Explaining the practical difference between "the company's property" and "your property" can be fun. In fact, the person being looted from is the tax man, who generally has a hard time hunting down that sort of income for taxation purposes.

* Which they do.

by Colman (colman at eurotrib.com) on Tue Apr 26th, 2011 at 01:35:13 PM EST
[ Parent ]

Display:

Top Diaries

Occasional Series