Newsletter 26th April 2026: Do You Know What 骑虎难下 means?

Mac
4 minutes ago
2 min read

Hi,

How has 2026 been for you so far?

For a lot of SME owners and politicians around the world, it has been nothing short of shock, uncertainty or even fear. Donald Trump has started his war in Middle East that reverberate its effect globally.

He may have dug himself a deep hole and unable to find any meaningful long-term resolution for the current situation. (A Chinese proverb for his situation is called 骑虎难下. It describes a situation where a person is involved in a precarious or uncontrollable endeavour, and unable to stop or withdraw without facing negative consequences.)

These are the aftermath:

The potential de-dollarization of US currency for petroleum industry
Long term price hike for petroleum products
Increase cost of living and business operation for countries dependent on Middle East energy source
The increased possibility for the development of Thailand Kra Canal project (OMG for Singapore!)

But if we are to look beyond the current geopolitical and economic climate, the proverb 骑虎难下 does apply to many individuals too.

For SME owners

It's relatively common to see SMEs outgrowing the management ability of their founders. In such cases, business starts to stagnate or become less profitable. Internal issues starts to surface as well.
Founders unable to exit from their business due to their organization dynamics or asking price. Very often, these SME owners are stuck in the market for a few years. (Very common)

For Start-up founders

They have previously fundraise at a valuation that may make not make sense on current market sentiment nor is it a realistic reflection of its actual growth potential.

For Searchers/ Business Acquirers

1. Those who have acquired a business and realised they don't have the right skills/ personality to operate it. Very often, the acquired businesses started going downhill in the first two to three years. Face Palmed!

2. Searchers facing difficulties doing their first acquisition or fundraising due to their lack of experience or skills in M&A. By then, they have already spent 1 to 2 years in it and unwilling to pivot. Sunk-Cost Fallacy