New model for entrepreneurship
Folks here me out!
Would any of you be interested in joining an Indian promoter as a partner?
💡The idea: India is run by MSMEs and if India has to become a $5/10trillion economy, it will be driven by a growth in MSMEs. Now, none of us want to be part of these MSMEs (lala companies) as an employee due to number of reasons but would the stance change if you come in as a partner.
Benefit for MSMEs:
- Get an experienced working professional who brings his network (to hire further folks)
- The professional brings in experience of a large organisation
- The professional invests his money to prove skin in the game.
Benefits for professionals:
- Not everyone wants to become a billionaire and hence running / building a 100-500Cr ARR business is lucrative option.
- Access to a launchpad of a profitable business with infrastructure already existing.
Would love to hear your thoughts.
Like somebody has pointed out, MSMEs are very rigid in their way of working. Even if you have good ideas, they won't be easy to implement. I have seen several MSMEs whose business operations can be streamlined thru digitization but the owner is not comfortable with it. They have the attitude " jaisa chal rha hai, waise theek hai". A lot of MSME owners are not ambitious and want to stick to the tried and tested approaches. Plus if they want to get funding they mostly stick to relatives or "Jaan pehchaan waale".
Hmmm okay. Don’t they want to hire smart folks? And do they approach relatives to raise funds ?
MSME owners ( at least the ones I have seen) think they know the best for their business and the other person ( even if he is the McKinsey CEO) won't be able to give good ideas since they don't work on the ground. I have seen them approaching relatives or close family friends when they have a new idea for a business or want to expand
It's a viable and feasible idea, provided adoption (scale) is solved. I have 10y of experience across multiple business channels and I had attempted to work as a consultant for a few MSMEs. The traditional businesses don't change their way of working or thinking even if you make your solutions and intentions logical and clear. It usually stems from a point of lack of trust in someone outside their family. Due to this reason, the probability of someone ready to take your capital also goes low.
I did find some success going around this but didn't scale further due to commitments at work.
Can the distrust be due to lack of skin in the game? A consultant v/s an operator.
Also do 2nd and 3rd gen business folks think differently ?
Let's assume a case where a professional offers capital in return for sweat equity. Why would the traditional business person even accept the money in the first place? He/She would already be having multiple sources of capital without any external involvement. In general, I found traditional businesses to be very careful in involving anyone who can formulate and implement decisions in their firm. They don't mind someone formulating a strategy as they can label it as gyan and decide if it needs to be implemented or not.
Regarding, second or third generation, yes - I agree. They will be more open to try this out. This is what I had tried out and succeeded a bit. However, involving a third person outside their circle is again not a preferable situation for them.
Got it.