GIVING SMALL BUSINESS A BIG FUTURE

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Status: Finished  |  Genre: Other  |  House: Booksie Classic


HOW SMALL BUSINESSES CAN BE TRANSFORMED INTO SMALL ENTERPRISES THROUGH THE HELP OF CONSULTANT.


“Progress is impossible without change, and those who cannot change their minds cannot change anything.”  A quote by George Bernard Shaw.

In heydays of my 60s, I was interested in bringing about some positive changes, i.e. to transform small businesses into entrepreneurship. And I should say, I had positively succeeded in that endeavor of modernizing the antiquated business practices for a noble cause of maximizing business flourishing and minimizing losses.

It is always easy to start a new enterprise and become entrepreneur but make it successful is hard. On the reverse side, it is hard to persuade the small businessmen and transform them into entrepreneurs. But it is relatively easier to make the transformed enterprise successful. Which one do you choose in India? And that how things are in India.

This article is that success story establishes thin lines between tactical antiquated business and Strategic modern entrepreneurship basing on collective data from 1970 to 2015 in India. Please do not think me as silly-conceited fellow to bring forward this analytical introduction but it is much needed for a meaningful conclusion as the article progresses.

analytical introduction:

This statistical analysis enables as to how much percent of employable and business-oriented Indian youth are idle and unproductive in their prime life without a manifesto.

Present, India with 1.324 billion people constitutes as the first or second maximum populous country in the world. India’s overall population is growing by 17.7 percent, according to official figures. While children represent 39% (age from 0-18 years) and non-earnable/dependent senior citizens above 65 years ratio is around 11%. The disabled population ratio is approximately 3%.

In India, from 1950 to 1975, Indian real gross domestic product (GDP) grew at an annual average rate of 3.6 percent (1.5 % in per capita terms. The Indian population 1980 was 696.8 million). From 1990 to 2007 the growth rate averaged 6.0 percent (4.0 % in per capita terms). The Indian population in 2007 was 1.18 billion.

As literateness is essential for employment and business function, up to 1975 the world’s literacy rate had grown by 84%, India had registered most sluggish rate at 8%. The female unemployment rate was estimated to be 6.9 percent whereas, for males, the unemployment rate was 2.9 percent under the UPS approach. In urban areas, the female unemployment rate was estimated to be 12.5 percent at All India level under the UPS approach.

The Indian economy underwent major economic reforms in 1991, leading to a new era of globalization and international economic integration, and annual economic growth of over 6% from 1993–2002 because of Information and Technology caught-up fever. In the contemporary world economy, India is the second-largest exporter of IT. Exports dominate the Indian IT industry and constitute about 77% of the industry's total revenue. However, the domestic market is also significant, with robust revenue growth. The industry’s share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012. Indian employment statistics disclosed 2.8 million are employed in IT sector.

In 2011/12 there were 17.61 million (1 crore 76 lakhs) government employees in India. So, about 3.55% of the workforce worked for the government in 2014.

In 2011/12 there were 11.45 million (1 crore 14 lakh) formal private sector jobs. So, 2.3% of the workforce is in the formal private sector. Total employment in govt. and private sector was 6%. In the rural areas, 11.1 percent of households were estimated to be having income from agriculture.

The rest of data reveals that nearly 42% educated/uneducated healthy young/middle-aged drifters roam about without any agenda. Out of 42% 18% of youngsters are on the look-out for pretentious top govt./ corporate jobs devoid of skillset and largely depending on fraternal patronage. That is huge.

While 24% educated 16 to 32 years aged siblings are from lower business class large poor families, partly helping non-profitable ancestral businesses.

I am interested in this 42% healthy average-educated group.

Indian way business:

Largely, from 1950 to 1980, many small businesses were started in a small way by families and offsprings were workers for operational and cost advantage, typically unsustainable business models and mostly interested in the personal delivery system and were functioned from upfront home space, with lean and mean behavior. How they had done business, whether successfully, modestly, moderately or disastrously but somehow these businessmen were survived in those hard pasts. Because of this immensity of problems, some unsustainable business models were rapidly gone out of business while fewer never established and were on brink of the wipe-out. But some business models were survived as idiosyncratic exceptions; they were split by family members and led to the penurious situation. Overall, it was the very gloomy picture.

As they did not have reverie, vision, and guidance, being whom they want to set out to be in future, they had not become but stuck up in vacuum space directionless. So many companies were ceased to exist.

After the 1980s, as the Indian economy began to well-off and as such there was the dramatic shift in these small businesses. Some success stories were well published in Indian Business magazines on more of epistemological modesty, other latent companies learned lessons from these articles. But still, they lack the adroitness for course-correction.

In this context, we had seen two sides of a tossed coin. The good news was that enterprises undergone transformation corrected hemorrhaging of losses and was brought on the path of the growth. Having had the first bird advantage in transformation, they had successfully grown and accumulated huge profits.

The bad news was, unchanged companies were stagnated even in good times of market-expansion and economy prospers. This was because; the systemic approach was more about “me”, less about “them” (customers). There were no impersonal solutions to personal problems. That is why; in spite of what has happened 60% businesses remained in a state of destituteness.

TRANSFORMATION:

24% educated youth without work and 60% of antiquated business models were any consultant’s arena to thrive. So In a way, I belled the cat. 

All my life, I have committed to fix up, improve and prevail upon small businesses’ and SMEs’ transformation through coaching, consultancy and mentoring, be it through either tinkered or rearranged company’s culture and strategies. From 1990 to 1995, I had interviewed thousands of small business owners, educated employees, uneducated workers in shops and on streets, not left any wage-earners in my interview including charlatans, housewives and seamstresses, unlicensed quacks, apothecaries and also witch doctors to know about their business modus operandi, tricks to earn a livelihood, customer’s belief, exploitation, decision making priorities, survival on meagre income and savings etc. The reason for this cooperative data was to gauge humane and moral ethics in the varying business standard.

This collective data had given me a sort of intuition and insight. I have observed certain character traits in these individuals despite they were poor and love to feed their large families, they were evidently seeking to respect fellow-businessmen, co-workers and showed esteem for customers. This group had equipoise, due diligent and were willing to work hard for success.

Their interpenetrative ability into customer’s mind, street-smartness, ability to understand their strengths, weakness and ably adjust their skillset to a predicament, compassion to work in the group and share hardships, lastly unabated self- motivation.

I need these young and middle-aged people. I was interested to transform them.   

Training classes and workshops:

This transformation was predicated only on full consent of participants. We set out a process with curriculum, agenda, training sessions and workshop practices for conducting evening classes on working days and full Sunday workshop. Some young successful entrepreneurs were invited to give prefaces and to share their experiences after having undergone transformation workshops.

To bring about an obligatory change in human behavior, we need to make people understand 3 aspects 1. Need an understanding of a positive “change”, 2.Acceptance 3. Encouragement despite success or failure.

A condensed data-structure was created as a conduit to flow out information asymmetries in easy and understandable course-consequential phases, naming it as “PROCESS VERSUS EVENT”.

At every phase initiation and implementation, we tried to build incremental ideas than earlier few. Presumably, we also built some odd and hodgepodge business models to study and footnote as idiosyncratic exceptions to comprehend unprecedented upshots. That was a sort of preparation for success or failure but no regrets. We started out with the proposed PROCESS. When we successfully completed each phase, we celebrated an EVENT.

1. We have distributed a bunch of paper with front-loaded interviewed data to display differences and imparted the meaningful advantages of modern business ideas, techniques, principles: how every wannabe entrepreneur should act as a dreamer, visionary, financial manager, leader and lastly achiever. Through this phase, we made participants well connected. These elements were new to them and lacked in antiquated business models.

2.The animated strategy. In this category, I had clearly demonstrated the differences between static and dynamic business models and shown them how obsolete business models did not appreciate open-air professional intelligence because of families’ opinionated dominance. The old business models were incessantly on day-to-day tactical survival but whereas modern business replications were strategic models with long-term benefits and enormous customers footfalls at their front offices. More customers meant a better business model. This was a critical phase to make them acceptable for a transformation. We advised participants to implement strategic ideas in their family businesses. After an interregnum of 1 month, we used to evaluate outcomes.

3.The functional category. I began to explain the annals of professional perspectives about hiring trained staff, managers, Leaders, visionaries, consultants and mentors to improve gamut of enterprise and more focus on interaction with customers, needs, and satisfaction. How western companies adopted concepts of 1980s (business-stabilisation practices) through managerial preponderance and from 1990s onwards importance of leadership to bring about positive change to drive company’s course to next level, distributed more than top 25 case studies from HBR specially grafted and asked participants to prepare synopses on how they could try to bring a positive change in their businesses in a small way without disturbing the present system. Simultaneously, handed out Indian transformed company’s success stories to show results because of cohesive approach between visionaries, leaders, and managers within the company. The rapid growth was an amalgam of these 3 influences.

4.The consolidation phase at appropriate times of interval. Each 2nd generation businessman had taken 2 months hiatus to implement, observe the positive changes and basing on consequences, consolidate the positive change.

5.we made them learn how to be successful in a small way because succeeding people mostly avoid failures. I call this consolidation phase as organizational homeostasis.

We used to ask 3 questions every day and looked for improvised actionable answers.

1. Now, are you willing to be successful? 2. Do you make the best and most of the talent and skills you acquire through this session? 3. Remember, will this session enable you to go from one peak to another in your life?

I asked every participant to develop a hypothetical case study. Case studies and answers were unbelievably affirmative.

6. After 3 months of interregnum, we were ready for some acceptable “major” changes i.e. recruiting outside professionals and run companies kinetically rather than by family members’ labor-intensive perennial efforts. This last phase of the process was sort of self-experienced transformation from static to a dynamic model. A close encounter of the Third kind for novices. The successful business model is one, which invites interested primary influencers such as customers, suppliers, employees, and financers to participate in its ever onward growth. That is what every entrepreneur eventually creates.

In the inception, you might have gone through Govt. of India statistical data, given us an idea about 42% educated but indolent Indian youth coupled with 60% antiquated business models.

I am (not only myself but also any erudite consultant) always fascinated by these nearly 42% and 60% manifesto who can be productive through sort of transformation sessions.

I can proudly say, from 2001 onwards, I used to conduct transformation training classes and workshops sessions tri-annually and transported thousands of eligible youngsters into the mainstream business economy. It had become the great success.

Every small business or SME needs a consultant or mentor to chisel out an art form model and make it come alive with technical form dexterity.

The biggest difference between successful and unsuccessful people is thinking. The successful people are always open to think, dig into systematics and ready to learn – always on the lookout for what is next to learn. People, who are transformed from small businessmen to entrepreneurs, are plenty. The change is possible.

“Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek.

A quote by Barack Obama.


Submitted: February 23, 2018

© Copyright 2021 thai prasad. All rights reserved.

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