Material energy lies in the dormant state until the Supreme Lord initiates this creation. Also, all the living entities who are conditioned souls, enter into Maha Vishnu in the previous dissolution. In the Bhagavad gita, it is explained - prakrteh kriyamanani gunaih karmani sarvasah - all material activities are nothing but the interactions of the three gunas - gunaih karmani - they are carried out by material nature in the form of this transformation of the three gunas. And these three gunas come into existence from the mahat tattva being pushed by kala. In the beginning, there is the transformation of the modes of goodness and passion but later due to mode of ignorance being transformed, it brings about the creation of what is called as matter - dravya - earth, water, fire, air, sky.
It is simply for the sake of the living entity’s desire to enjoy materially that there is a need for this creation. Otherwise, the living entities are just spiritual beings. People ask why this material creation is complicated. There are laws and there is papa and punya and there is karma and kala, why? It is only because of the desire of the living entities to enjoy materially. In Chaitanya Charitamrita, it is explained that - the spiritual world exists because of the unlimited desires of the unlimited Supreme Lord and the material world exists because of the limited desires of the limited living entities. But this creation is just a manifestation of the three gunas, in different proportions they are mixed and different qualities are produced. So the same material substance or energy is manifested as wood or steel or for that matter even its manifestation as earth or water or fire through the interaction of the gunas called the material energy.
And the living entities are simply bewildered by the influence of the gunas on their consciousness. The living entity believes that all these different creations are meant for his enjoyment. These material activities are a result of ignorance and you go deeper and deeper into illusion, as you go on doing more material activities. This is ignorance of the real self -I am spirit soul, I am not meant to enjoy matter, it will never make me happy. So Prabhupada says in the present age of Kali, the mode of passion is very prominent. Passion means it is the basis of material development. When material development increases, people forget their spiritual nature more and more.
Suta Goswami describes that the three gunas, even though all of them are simply transformations of material nature, still among them there is a gradation. Rajo guna is better than tamo guna, but sattva guna is the best because - sattvam yad brahma-darsanam - in sattva guna one understands what is spiritual nature, but still sattva guna in this material world is always contaminated by the other two gunas. There is no pure goodness in this material world, except in devotional service. Prabhupada explains the only way to know the Lord is that the living entity himself has to transcend the modes and come to the spiritual platform.
In the Bhagavad gita it is explained, if somebody wants to rise above the three modes, the only way is devotional service. You can rise above the modes by coming in contact with Krishna only through bhakti.
As Prabhupada says, just like an expert engineer he may make a huge machine, but he gives the first push by starting and after that it goes on according to the way it is programmed by this intelligent person. Similarly Krishna has programmed this material world, He gives the first push by glancing over the mahat-tattva.
After that karma, kala, guna - they are the three basic features of this material creation which continue till the Lord decides to wind up.
Different varieties of activities that will result in the living entities getting different kinds of bodies and once the body is there, the living entity’s desire for enjoyment - that becomes the basis of kala again acting on the gunas for the living entities to engage in different varieties of material activities and it continues till the Supreme Lord decides.
So for those who are not prepared to go back to the real home, Maha Vishnu’s body is the home, they have to rest there till the next creation takes place.