The entrepreneur of company Transformix complained banks set challenges for them. The entrepreneur described those banks like:“We were going through this crazy growth, and we were doing well, cash flow was great, and all the major banks wanted to partner with us, wanted to give us a line of credit. And the minute it was kind of cloudy, they wanted their money back.”

In my opinion, banks are growing their power of management by screwing those companies. The definition of entrepreneur is the people who take the responsibility and risk for starting a business. As the growth of the companies speeds up, entrepreneurs need loan more from banks. The more money they loan, the more power of effect banks have on their companies.

I think that the entrepreneurs should improve their management information system in order to come up with good strategies immediately after growing. Banks have the power to  effect the development of companies. Therefore, the strategies for companies are on management level. The loans in growing period cannot be avoided, so the companies need to find proper strategies earlier to be against the power of banks. Therefore, a better MIS is required.

The news can be found at: http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/leadership/finding-financing-when-the-bank-turns-off-the-taps/article15378421/