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Distinguished Guest Editorial Improved Productivity Means Increased Profitability CARL M. FRANKLIN, Ph.D. Black and Decker Professor of Management University of Baltimore Retiring Editor, The American Journal of Small Business Virtually everyone who goes into business seeks some kind of net economic gain. Some seek direct gains through operation of enterprises which are required to make a profit - maybe not in each accounting period - but certainly over the life of the activity. Those who seek indirect gains may deliberately operate their businesses at a loss in order to take advantage of tax savings. Nevertheless, ALL BUSINESSES, LARGE AND SMALL, WHICH DO NOT YIELD NET ECONOMIC GAINS, SOONER OR LATER GO OUT OF EXISTENCE!! Why? Simply because nobody loves a loser - especially bankers, trade creditors, customers, and investors. Without support from those groups, no profits will be made. Without profits no business can survive. Without a good rate of productivity, a business will at best have only a low rate of profitability. Consequently, it behooves everyone who owns, manages, works for and may be otherwise involved with a business to take never-ending action which IMPROVES PRODUCTIVITY AND INCREASES PROFITA BILITY!!! Unfortunately, too many people do not understand that
American Journal of Small Business – SAGE
Published: Apr 1, 1983
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