WHY DO SMALL INDUSTRIES REMAIN SMALL? — PART 2
Minish Umrani (Industrial Consultant)
“WHAT SHOULD GET PRIORITY?”
Once a small entrepreneur starts earning enough money, his attention often begins moving towards things outside the business—joining a club, accepting the position of secretary or president, participating in social organisations and so on.
These things are not wrong. But one has to decide what deserves priority.
Sometimes entrepreneurs give personal matters greater priority and arrive at their factory leisurely after eleven or twelve. Their businesses certainly have problems, but they have accepted that “business means problems.” The priority, however, is given to things other than the business.
I remember meeting Mr. S. B. Hundare, founder of the Polyhydron Group. One statement from our conversation has stayed with me.
He said, “In the beginning, I too wondered whether I should give more attention to my family or to my business. Most entrepreneurs face this question. A social worker may similarly ask whether to give priority to family or social service.
I decided to give priority to the business, because the family would ultimately depend on the business. I gave the business priority and it grew. If I had given the family priority, the family would have grown, wouldn't it?”
We have seen many leaders from India's freedom struggle who considered family secondary and gave greater priority to achieving independence. That is one reason independence was achieved.
Full-time workers of organisations such as the Rashtriya Swayamsevak Sangh have also historically placed their organisational/national work above family priorities.
Similarly, saints such as Ramdas Swami and Sant Tukaram gave greater priority to spirituality and devotion.
What anyone chooses to prioritise is entirely personal.
But since we are discussing why small industries remain small, this is one possible reason. Giving priority to the business certainly does not mean neglecting the family. After all, we run the business for our family too.
But a business is not simply a job created only to support one's own family.
An entrepreneur is responsible not only for his own family but, indirectly, for the families of his employees as well. If employees receive their salaries on time, they remain with the business—and only then can the business continue to operate.
I believe micro and small enterprises should aim to reach at least ₹10 crore annual turnover as quickly as possible. Let us call this the “gravity limit” of a business.
Just as a rocket needs enormous force to escape Earth's gravitational pull, a small business needs extra energy and focus to cross the ₹10 crore threshold.
If an entrepreneur genuinely wants to make his business prosperous and take it beyond its gravitational limit, shouldn't his first priority be his business?
.... PART 2 ENDS
During my twenty years of consulting, I have come into contact with at least 200 businesses. I am presenting the experiences I gained while directly participating in their growth through this and the forthcoming articles.
There is no unsolicited advice or commercial agenda behind these articles. This is essentially a dialogue with small entrepreneurs, and I naturally welcome different opinions.
The purpose is not to point out shortcomings in small entrepreneurs. The purpose is to explore how business growth can be achieved. Through this series, let us try to move towards that objective together.
Minish Umrani (Industrial Consultant)
“WHAT SHOULD GET PRIORITY?”
Once a small entrepreneur starts earning enough money, his attention often begins moving towards things outside the business—joining a club, accepting the position of secretary or president, participating in social organisations and so on.
These things are not wrong. But one has to decide what deserves priority.
Sometimes entrepreneurs give personal matters greater priority and arrive at their factory leisurely after eleven or twelve. Their businesses certainly have problems, but they have accepted that “business means problems.” The priority, however, is given to things other than the business.
I remember meeting Mr. S. B. Hundare, founder of the Polyhydron Group. One statement from our conversation has stayed with me.
He said, “In the beginning, I too wondered whether I should give more attention to my family or to my business. Most entrepreneurs face this question. A social worker may similarly ask whether to give priority to family or social service.
I decided to give priority to the business, because the family would ultimately depend on the business. I gave the business priority and it grew. If I had given the family priority, the family would have grown, wouldn't it?”
We have seen many leaders from India's freedom struggle who considered family secondary and gave greater priority to achieving independence. That is one reason independence was achieved.
Full-time workers of organisations such as the Rashtriya Swayamsevak Sangh have also historically placed their organisational/national work above family priorities.
Similarly, saints such as Ramdas Swami and Sant Tukaram gave greater priority to spirituality and devotion.
What anyone chooses to prioritise is entirely personal.
But since we are discussing why small industries remain small, this is one possible reason. Giving priority to the business certainly does not mean neglecting the family. After all, we run the business for our family too.
But a business is not simply a job created only to support one's own family.
An entrepreneur is responsible not only for his own family but, indirectly, for the families of his employees as well. If employees receive their salaries on time, they remain with the business—and only then can the business continue to operate.
I believe micro and small enterprises should aim to reach at least ₹10 crore annual turnover as quickly as possible. Let us call this the “gravity limit” of a business.
Just as a rocket needs enormous force to escape Earth's gravitational pull, a small business needs extra energy and focus to cross the ₹10 crore threshold.
If an entrepreneur genuinely wants to make his business prosperous and take it beyond its gravitational limit, shouldn't his first priority be his business?
.... PART 2 ENDS
During my twenty years of consulting, I have come into contact with at least 200 businesses. I am presenting the experiences I gained while directly participating in their growth through this and the forthcoming articles.
There is no unsolicited advice or commercial agenda behind these articles. This is essentially a dialogue with small entrepreneurs, and I naturally welcome different opinions.
The purpose is not to point out shortcomings in small entrepreneurs. The purpose is to explore how business growth can be achieved. Through this series, let us try to move towards that objective together.
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