The Marwari or Marwadi is a South Asian ethnolinguistic that originated from the Marwar Shekhawati Jaipur region of Rajasthan and Haryana. The Marwari people are born for business as they dominate the country’s economy and have the wealthiest business community in India.
The Marwari companies have 6 percent capitalization of the Bombay Stock Exchange and constitute a quarter of the Forbes Indian billionaires list.
“The answer also probably lies in the fact that the commercial communities in general, and Marwaris in particular, have successfully implemented attitudes, skills, and support systems,” says Thomas Timberg, a Harvard graduate.
What makes a Marwari good at trading, manufacturing or any business?
The answer lies in a system they have developed over a long period of time as traders from the desert and how they live as a community. The community plays a crucial role in turning the wheels of the country’s economy as innovators, entrepreneurs, and business leaders.
1. Centralized finance control
The key is to strategize the management of investment funds by moving them to where they are most productive in the long term and close financial monitoring of the enterprises in which they have a share.
Aditya Birla says, “What do you do to attract people? You give people tremendous powers and independence while monitoring their performance.”
The reason why there are several successful family businesses is the tight financial control stemming from an acute sense of accounting.
2. Unwillingness to spend money
When Marwari people shift to a new location, they try to shrink their needs to the bare minimum. Their inbuilt unwillingness to spend money enables the community to survive under hard conditions for a longer period of time.
The style of Marwaris is conservatism in lifestyle and riskiness in business style. Their needs seldom transcend into wants or even desires, except for social ceremonies such as marriages.
3. Opportunism
During the 16th and 17th centuries, most of the inland trade in India was managed by Marwaris. From trading to producing or even services, Marwaris have shown successful ventures because of opportunities.
The Birla’s have remained India’s largest business group for over five generations because of adaptability and spotting and shaping opportunities.
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4. Subordination of the individual to the family and vision
The managers understand that the business is here for a long haul and they always have to be clear about the purpose.
A clear purpose to grow the family business profitably and in turn, grow the self-helps the business retain excellent talent.
Successful businessmen like Ratan Tata or Azim Premji, they try to meet people’s talent and attention to excel at their own possibilities.
5. 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.
From traders to a flourishing industrious community, the Marwari community has played a pivotal role in changing the face of Independent India. The success behind the Marwari community has been its propensity to ‘network,’ much before the word came to be used as a verb.
Image Credits: Google Images
Sources: Wikipedia, India Today, Economic Times
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