The Government as Benefactor for Selected Stocks (Part 2)

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The Government as Benefactor for Selected Stocks (Part 1)

Competencies for Durable Government Support for Stocks

Though the United States is promoted as a model of free enterprise, the ground realities are that the government has pervasive influence on all sectors of commerce and industry. Stocks may lose most if not all their values simply because entrepreneurs fail to recognize the regulatory and discretionary powers of administrators and politicians. The pattern is repeated or even worse in most other countries. Executives need to appreciate how government departments function, and the intricacies of the relevant rules, whether or not they seek to build revenue streams from this large customer segment.

The US federal government awards contracts exceeding $200 billion a year. Proportions of this largesse are reserved for small business owners, as well as for veterans, women, and other disadvantaged groups. The government also has special programs to assist small business owners make successful bids, and to break in to areas with large and sole suppliers. It is worth learning the ropes with respect to making winning bids for government contracts, and some of the expertise is in helping administrators draft appropriate tender specifications. It takes many years of hands-on experience to appreciate all the nuances of dealing with the holders of government purse strings, and the best corporations have full-time experts for this profitable function.

A Global Route for Top Values of Stocks

Management consultancies are perhaps the best and safest kinds of enterprise when it comes to milking government budgets. Quality parameters are nearly impossible to specify, which leads to enormous discretion in terms of the rates paid, and the durations over which services are procured. Consultancy is something which every government can demand, though some countries may occasionally favor certain chosen providers.

Specialization is a profitable route to building a niche in government business. There are no limits to creativity in terms of functional areas in which specialization is claimed, and competitors may find it nearly impossible to enter this lucrative field-at least until a new government is voted in to office!

The Government as Benefactor for Selected Stocks (Part 1)

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