Business Secrets of the Marwaris

 This will put in bullet points as we grasp from the various articles and books on the subject: 

Network, Network, Network 

When a Marwari child reaches earning age, he is put in tutelage with a relative or a friend. When they reach a new land, they are immediately taken in and supported by the local community there until they are able to support themselves. 

It may be nature, but a lot of it is nurture 

I have said this often and will repeat - the Western world is finding (again) the importance of giving children more than academics - of giving them real productive work where they can see the outcome of their actions. Indian communities have always made children a part of their work. If it is a trade, the child is taken on the rounds. If it is collections, the children go with the father. If it is a factory, the children grow up there, visiting at least once a week. If it is craftsmanship, children help the parent as soon as they can walk. Work is literally all around them in growing up. 

Family comes first 

I asked a Marwari friend - we Punjabis can never work with our families. We end up fighting. How do you do this? How do you work consistently with other family members? 

Her reply has stayed with me ever since - We have deep respect for our family members. No matter how much loss it means in business, we never let our elders feel bad. And we always keep family members happy. Since its the same business, people don't usually let ego come in the way. But if it does, we assuage the ego first, because relations are for the long term, business decisions are short term. 

Education 

Almost all Marwari children are educated well. This helps them, imho, understand emerging business trends and create networks that help them leverage these emerging trends. 

The most undeniable aspect of Marwari businesses is their longevity. That longevity is not possible without agility and proactive management of the business environment. 

Insistence on education may have a lot to do with it. 

Pioneering and risk taking 

The first people to buy sick jute mills were Marwaris. The first people to move to Calcutta and establish a trading base there once the port was set up were Marwaris. The first people to move out of Marwar and become financiers to the Mughal emperors were also Marwaris. 

If you look at Marwari businesses, quite a few of them would have started something new. Pioneering or risk taking is inherent to all businessmen. That is how businesses are built. But in this case, we combine the pioneering spirit with the ability to garner a community quickly, and we see a very good result. 

That thing called corporate culture 

In corporate grapevine, they are called the lala companies - companies that  are family owned and loyalty to the head is instinctive and personal. As family members join the business, some of the loyalty is also inherited by them - wives, sisters, children, cousins, everyone. 

The corporate culture is driven by loyalty and a sense of family. If an employee has a personal emergency, they would do something that no one can imagine in an MNC - they would request to meet the big boss directly, and the big boss would, after hearing of it, approve whatever it is that would help the employee. There is no question of involving HR, system adherence, etc. 

In fact, this is something I have observed, time and again, in Indian businesses - the family is an inherent part of the culture. The family is the most important unit - of the founder, and of every single employee.

Financial Control and instruments 

There is an acute sense of accounting for every penny. Financial control is typically much tighter. But, things like maker-checker or processes or accounting standards etc are not what lead to this tightness. It is the CEO's familiarity with the flow of money. 

The Marwari financial instruments were also much more evolved than their counterparts. The Hundis were the first negotiable instruments, long before the term was coined.  

Talent Pipeline

A direct result of the network and community angle was the ready availability of talent and a talent pipeline. The youth was assured of jobs and the business was assured of talent. Further, there was minimal risk of white collar crime because your entire social circle, your family, everyone worked with you. 

I think that while this aspect may have diminished in recent times, a trip to the industrial/ trading belt will show that people still maintain 25-30 years of tenure with the same organisation. The children may fly the nest, but there is still a security cover should they need it. 

Philanthropy 

Like most Indian communities, the Marwaris also believe in philanthropy. Much of that money is spent on generally accepted causes - temples, girl children, health, education of the underprivileged. There is a concept of a welfare state that comes from the very Indian idea of Sarbat ka Bhala / Vasudhaiv Kutumbkam. But this philanthropy ensured a certain basic minimum level of existence for most people in the region. I have some conjecture about how this led to the creation of a pro business environment, but better to write that after the research. 

Social capital and a brand

What is the secret of the fat Marwari weddings where the hidden wealth oozes out in all forms and fashions? Why do Marwaris spend so much on a specific festival or occasion? It is to build social capital.

If success in business is a direct consequence of one’s social capital, festivals and special ceremonies are the means to earn the capital. It is noted that the exchange happens on goodwill in the market of diamond and precious stone trading in Jaipur.

Bibliography

 Check How Marwari People Are Born For Business And The Secrets That Make Them So Good (edtimes.in)