Why enterprises exist

The fundamental purpose of enterprises is not to make money.

What then is the fundamental purpose of an enterprise? It is to create users.

Imagine a two-dimensional graph, with a vertical and a horizontal axis. The horizontal axis is substantially the same as other general businesses, we call it ‘enterprise value’, the market goal is, in short, to create customers. Customers and users are not the same thing, and should be separated. ‘Customers’ make a one time transaction with the enterprise: you make a product, the customer buys it, you hand it over, and there is no further contact . . .

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