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Entrepreneurship

Entrepreneurs Who Failed

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Entrepreneurship

Somanjana Chowdhury

14 Apr,2016

We have admired the entrepreneurs who earned success in their career and business by maintaining proper structure, employee and client satisfaction. However, there are some entrepreneurs also who horribly failed in maintaining their business still we can learn some dos and donts of the business ethics from them. Let’s start.

1.

Scott Eyre was a former pitcher for the MLB. He played for likes of the Toronto Blue Jays and Chicago Cubs.  He became news as one of Allen Stanford’s victims who invested in his fraudulent billion-dollar scheme which cost Scott almost all of his money.  We can take the lesson from this that we shouldn’t invest in something until we’ve thoroughly assessed the risks as well as the person or entity behind it.

2.

This man managed to earn hundreds of thousands of dollars at a time because of his unmatched prowess on the field. Johnny Unitas invested his money into the different industries he dabbled in, such as real estate, restaurants, and manufacturing.  Unfortunately, all these businesses failed and they were forced to file for bankruptcy.

3.

This strong and heavyweight champion’s lifestyle got damaged with financial woes when his boxing career lost steam in the late 70s. Unfortunately, all the money stopped coming in and he became stunned with credit card debt and unpaid loans.  It was fortunate though for George Foreman, he bounced back from his situation by getting back in the ring as well as investing in the popular TV shopping product called the Foreman Grill.

4.

The Satyam Computer Services scandal is a corporate scandal that happened in India in 2009 where Chairman Ramalinga Raju confessed that the company's accounts had been falsified. The Global corporate community got shaken and scandalized when the Ramalinga Raju resigned on 7 January 2009 and confessed that he had manipulated the accounts by US$1.47-Billion. In February 2009, CBI started a proper investigation and filed three charge sheets on 7 April 2009, 24 November 2009 and 7 January 2010, which were later clubbed into one. On 10 April 2015, Ramalinga Raju was convicted with 10 other members.

5.

She is the wife of the late John Kluge who was worth billions himself during the late 90s. However, right after their divorce in 1990, Patricia Kluge started marketing a 960-acre vineyard that was supposed to target an ultra-rich clientele.  She loaned around $70 million just to look after and develop the facilities, but eventually the real estate crisis in the late 2000s caused her venture to fail and the property foreclosed.  So from this we can learn that successful entrepreneurs shouldn’t invest all their money in one side.  Otherwise, you can easily lose everything for one incident.

6.

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Currently in jail, Allen Stanford, a former billionaire was charged with running a multi-billion dollar Ponzi scheme.  He acted as the Chairman of Stanford Financial Group. However, he has been accused of masterminding a financial conspiracy of robbing investors out of their hard-earned money and misusing their funds to maintain his extravagant lifestyle. He tried living the good life at the expense of others and is now facing the consequences of his actions.

7.

Vijay Mallya was the owner of India’s biggest liquor company, a private jet, an Airbus and many other riches. In 2005, Vijay Mallya launched Kingfisher, an airline based in India, to match his style and grandiosity. Until December 2011, Kingfisher Airlines earned the second largest share in India's domestic air travel market. However, the airline had been facing financial issues for many years, and due to a severe financial crisis faced by the airline at the beginning of 2012, this share dropped to the lowest in the market in April 2012.

8.

He is a German internet millionaire and is most popularly known as the founder of Megaupload which is an online file sharing service. Kim Dotcom’s fall from this height isn’t only because of bad business decisions but he was also involved in a lot of suspected criminal activities.  While his website is being accused of copyright violation, he’s also been charged with insider trading, embezzlement, and computer fraud.

9.

He was once a Multi-Millionaire stockbroker who had it all. Yachts, planes, women, midget throwing parties and drugs were included in Jordan Belfort’s life’s agenda. He was reported to be making $250 Million at the age of 25 through his stockbroking firm Stratton Oakmont which functioned like a boiler room and later served  as inspiration for the creation of the film also known as ‘Boiler Room’, starring Vin Diesel & Giovanni Ribisi. Jordan Belfort’s multi millions got exposed from him when the FBI pinned him for securities fraud and money laundering.

10. 

MC Hammer got his fame in the 1990s and earned around $30 Million during the peak of his musical career.  Right after his success, Hammer wasted no time squandering his fortune on mansions, sharing money with friends and expensive toys. As his luck didn’t support him, he filed for bankruptcy due to an enormous debt.  He’s a classic example of someone earning his wealth really fast and too soon, which made it hard for him to handle his finances.

 

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Somanjana Chowdhury

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