Ancient pearls of common sense

John Arnold, Director, Ernst & Young Consulting Chairman, British Chamber of Commerce, Jakarta

In the dusty pages of ancient philosophical and religious manuscripts can be seen the development of the Asian entrepreneurial spirit. During this economic crisis, it is important to recognize that the spirit of entrepreneurship has been deeply embedded in Asian culture for many centuries. It is that spirit which has enabled Asian peoples to survive in difficult times and is the reason why entire civilizations have developed in periods of prosperity.

This is also why Indonesia needs to foster and encourage the entrepreneurial talents of its people to pull itself out of the current economic slump.

VV Ranganathan, the national director of the Ernst & Young Entrepreneur of the Year award program in India, shares below "pearls of wisdom" that have been passed down the ages but which remain relevant to today's successful entrepreneurs.

The ancient writings are repositories of powerful thoughts. The impregnable powers of logic and analysis and the attention to detail in some of these works have baffled scholars and have turned some of the most successful entrepreneurs into serious students.

The books on Vedanta, one of the six orthodox systems of Hindu philosophy, and ancient Indian classics are indeed a treasure house. They can educate us on the laws of life and living and can help us gain knowledge about our intrinsic Self.

Mention must be made of at least one of the most significant, whose teachings have universal application even today.

One teacher and philosopher, Kautilya, born in India sometime between 300 B.C. and 150 A.D. helped Chandragupta, a boy of royal line who was raised by a cowherd, become the King of Magadha, now a part of Bihar state in northeastern India. Kautilya, better known as Chanakya, gave the young lad an education befitting a king. Together they fought another king and won the kingdom for Chandragupta.

Kautilya, who practiced all the tactics that he preached, is the author of a practical work titled Arthashaastra, which means the science of politics and, in its widest sense, the art of running a government. It is the first known treatise on government and economy. The book's philosophy is that promotion of the welfare of one's subjects leads to wealth, which in turn helps enlarge the empire. Kautilya wrote, "The source of the livelihood of men is wealth." So all you entrepreneurs and wealth creators, lay your hands on this great work and draw inspiration!

His work deals with a host of topics -- adversity, calamity, succession, self control, duty, security, conspiracy, service, organizational structure, customers, planning, budgets, accounts, audits, treasury, revenue, financial rules, penalties and punishments, trade and transport, laws, foreign policy, and war.

In today's world of ingenuity, spontaneity and rush, the maxim for entrepreneurs is to build the right team with the right people and the right rewards. Many modern-day entrepreneurs will remember this motto -- the difference between running a business and ruining it is "i".

Consider Kautilya's words: "In the happiness of his subjects lies the king's happiness; in their welfare his welfare. He shall not consider as good only that which pleases him but treat as beneficial to him whatever pleases his subjects".

This is a powerful thought that is just as relevant today. Similar thoughts couched in different words adorn the corporate corridors of today's businesses in the form of vision and mission statements.

All entrepreneurs assume risks in the right proportions, for without risks there are no rewards. Managing risks, not avoiding them, is the art perfected by entrepreneurs. Hundreds of years ago, Kautilya wrote, "In the interest of the prosperity of the country, a king should be diligent in foreseeing the possibility of calamities, try to avert them before they arise, overcome those which happen, remove all obstacles to economic activity, and prevent loss of revenue to the state."

Consider some other valuable quotes from his work that have considerable depth:

"Just as it is impossible not to taste honey or poison that one may find at the tip of one's tongue, so it is impossible for one dealing with government funds not to taste, at least a little bit, of the King's wealth."

"A single assassin can achieve, with weapons, fire or poison, more than a fully mobilized army." How true this is today.

"Just as elephants are needed to catch elephants, so does one need wealth to capture more wealth."

India's entrepreneurial prowess is as well established as our ancient history. Present day entrepreneurs who are endowed with talent and temperament enriched by an enviable culture can channel the energy of youth into activities that can create more wealth for their nations. As Kautilya said, "The root of wealth is economic activity and lack of it brings material distress. In the absence of fruitful activity, both current prosperity and future growth are in danger of destruction".