India today is poised to be worlds 3rd largest economy by 2020. How can a community which has been credited to have given the Indian economy entrepreneurs generations after generations keep up with its values and name?
1. The suspicion for commercial enterprise in India post-independence reached its epic in 1970's when Income-Tax rates peaked upto a whooping 98%. It was natural for businesses to resort to dealings which by-passed the banking channels which resulted in entrepreneurs turning managers and manage all aspects of their business by themselves.
Today with Indian taxation laws being in par with their International counterparts it is no more required that a business evades taxes and under-value their sales. Infact it serves as a deterrent in valuation of one's company and effects ones credibility with banks.
As present day Marwari families gives good formal education to both boys and girls alike their skills are under-utilized in such an environment when all aspects of business are to be managed by the owner. In a globalized scenario when India had gained global competitiveness in various sectors being a good manager and attract talent to work in ones organization is a key to scaling up and growth.
2. Marwari enterpise has since long believed in capital valuation of their businesses by acquiring fixed assets which exist more or less in the form of NPA's in ones company. It is always healthy to have an asset which is working in favour of the company however higher capital valuation in the form of fixed assets defeats the purpose of business and shifts ones focus from one's core activity. Acquiring assets in the form of skilled manpower, brand value, better working conditions and good will is more important in scaling up a business.
3. Enterprise often rose in marwari community in form of proprietorship and partnership firms. The proprietor or the partners give a character to the company which defines it nature and culture in its workplace. In trading activity profits were driven by opportunism and speculation which depended on the risk the entrepreneur was willing to take. As heirs of these proprietor/partners came in they worked as apprentice and later formed their own firms.
In the manufacturing sector it takes years for one to build goodwill and SME's become knowledge centers which cannot be created overnight. Hence the need to re-structure the company comes in whereby the heir are able to join in the capacity of working partners and can gain benefit depending on the work they put in.