Common Threads in Indian Business practices

Every family is unhappy in its own way, but the ones that are happy have some things in common. 

You might have read this or heard it from your seniors. 

It is true in business too.

Some common threads run through the business communities that I have studied. 

They support each other 

The BIGGEST common factor in successful business communities is that they all support each other, especially the ones who are starting out. 

They provide introductions, orders, opportunities. Even simple logistical support like a place to stay or eat inexpensively. 

It's not done at an individual level. There are community structures in place. For instance, there is a dharamshala in a city. That dharamshala is funded by the commerce association of a community. 

Employment is for families, not individuals 

You get a break if you belong to a certain family. The opposite is also true - if one member of a family commits a fraud, no one from that family then gets a break for a generation or two. This works in two ways - one, it lowers the entry barrier, and two, it raises the punishment for a wrongdoing. 

Therefore, integrity at the workplace is enforced by ensuring that everyone knows everyone's families and the reward (and punishment) of good/bad work extends to the family and the extended family. 

Big on philanthropy, but silent

Every single Indian businessperson I know, every single one, is a philanthropist. Indian religious and cultural belief systems anyway enjoin that a certain amount of one's earnings must go towards charity. But even without that guideline, I have no idea what prompts this level of individual giving. 

My father ran a small store. We did not always have enough. But every Tuesday, my mom would make packets of food that dad distributed for free at his store. 

An industrialist I know shared in a rare moment of candour that he pays for health facilities for underprivileged women, because no one thinks of the women. He never mentions it. 

Yet, if you see the CSR reports of India, they are woefully silent. Why? 

Because the other aspect of this giving is that it must be anonymous. The only way to get some punya (good karma) out of this giving is to not boast about it. So, one gives, but does not talk about it. 

Good in accounts 

Almost all these communities are found to be great at numbers. They have an inherent, innate sense of money, cash flow, and that amazing thing - profitable or not. 

Relationship with money 

Their relationship with money is positive. They do not view money as evil. But they also do not view money as an end in itself. Rarely, if ever, have I found anyone from these communities to think - How do I get more money in? 

They think about - Impact banana hai, bada banna hai. Money is a means to an end - a better life is the end. A better life might mean a more comfortable house, more prestige, better education for kids - anything else that they desire. 

Perhaps this is why they rarely flaunt wealth. The Birlas use their money to buy art, but they are found in cotton clothes. In an interview, a member of the Birla family mentioned this in as many words - "What will we do with money? It only means that we are able to buy a piece of art or do some act of charity without thinking. That is what money means to us." 

Trusted Advisors

Because they help, they have access to almost every kind of trusted expertise. Other communities that experience this also report incredible benefits of this perk. For instance, if you want, lets say, an HR issue resolved, you call up another person who is in the same line of business, and they tell you what they did. You have the template ready. This is also why so few Indian family-owned businesses respect modern management professionals.  They tell the staff what to do because they have either done it themselves, or know someone who has. I have experienced this in our Women from IIM Community, and I cannot explain the competitive advantage that it gives us. Need something in tech? Ask the tech group. Anything in HR? Ask the HR group. Its amazing how much actionable advice is available at the click of a Send button. 

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The communities I have studied are: Marwadis, Baniyas, Gujaratis, Punjabi trading communities. 

The communities I want to study - Shroffs, Shettys, Chettiars, and others from the South, Ahmediyas and Bohras, and the North East.