Entrepreneur King; his Pink City & the Future

Maharaja Jaisingh - 1688 - 1743 - (photo taken from the murals of the Jaipur museum).

Maharaja Jaisingh was an exceptional king. Amongst many of his great achievements in the 18th century was building of the city of Jaipur, which is still intact, vibrant and fully operational. But he built this city with a purpose. He wanted it to be a great trading center rather than a fort like city which was the prevalent style during those days.

And he hit upon a very novel idea. He thought to turn his subjects into micro entrepreneurs and traders so as to transform his desert kingdom into a wealthy and flourishing one. With this in mind he built small shops within the city with wide roads for transportation of goods. He also wanted to make it aesthetically pleasing. Therefore all buildings were made out of pink colored stones from which the city got its name the 'Pink City', where none of the buildings could be built beyond a certain height.

It was a rather exceptional idea to rent out these newly constructed shops in the heart of the city to commoners rather than to noblemen of his courts. He charged them a very small rent in exchange of letting them run their family business from these spaces for commerce. Even after 200 years of their existence the value of the rent has gone up to measly sum of Rs 30/- a month (under $1). The idea was not profiting from the rentals but letting people learn and do business and add wealth and cultural value to the princely state of Jaipur. A casual round of the place shows us the great variety of trades and professions the people were engaged in, most of which continues till this day. Businesses are passed down from one generation to the next. Artisans (read freelancers) flocked to this place from all over India not only to enrich the culture of the place but also put a permanent signature of their unique quality at affordable prices.

This had far fetching repercussions and implications on the development of the nature and structure of Indian businesses, some of which are the following:

1. Created a class of astute and die-hard business families called 'Marawaris'. They hate to do anything other than business.

2. Augmented the concept of 'family business', which is the prevalent style of doing business in India.

3. Promise and trust were the cornerstones of doing business where verbal agreements were equally honored like written agreements.

4. Promoted local crafts that pulled together designers, artisans, businessmen, freelancers, entrepreneurs, job seekers all over India especially from Bengal and Gujarat. The impressions of their fine art work of Bengal and Gujarat seem to be all over the place in Northern India, which even found a prominent place in Muslim and Mugal artifacts. Over time people from Gujarat were also sucked into becoming small and big businessmen but Bengalis stuck to their nomadic freelancer and micro entrepreneur life style. In that way they not only became the second largest community scattered all over India but also the eleventh richest community in the world.

5. Preservation of traditional crafts and professions till date, which the British wanted to obliterate with standardization of their products supported by efficient transportation connecting thousands of villages across India. It is in the desert region of Rajasthan that they miserably failed to push their concept of standardized and cheap products carried through an efficient railways system. This happened because British goods did not suit the local needs or matched the culture of the place. Their products weren't life centric as the traditional products were.

6. This brings up the unique topic of designing 'life centric products'. For instance, in these markets, one would find a blanket that weighs about 100 grams, which can be folded into a very small size. The unique life centric feature of such a blanket is that it is cool on one side and warm on the other. Such an artifact is completely life centric to the nomadic tribes of the region. It is light and small to carry and can be used both in the daytime when temperatures soar and in the night when the mercury dips too low. The brass vessels used for storing water serves as another live example of a life centric product. People in the desert have used brass vessels for storing brackish water to turn them into potable drinking water for centuries. So the traders still sell brass vessels so useful in a place used to having scanty or no rainfall during the whole year. Even today, these traders are busy selling such life centric wares, which as I saw kept evolving over time with changing contexts.

7. The business models that operate are built on three vital principles -- a) Robustness b) Resilience c) Natural cycles and rhythms linked to patterns of living. They have cleverly blended the concepts of robustness/reliability with resilience into their products and business models. The products are cheap, aesthetically pleasing and reliable over long periods of time. As opposed to concepts of robustness and reliability these businesses, which have stood the test of time, primarily evolved around the concepts of resilience and patterns of living tied to Nature. The businesses were resilient to stand the test of time since they had the innate ability to detect changes in the likes, dislikes and changing demands of the people and times (a sort of collaborative effort) to quickly adjust and adapt to those changes. It means rather than think in terms of fixed and often larger volumes, scaling up, improved infrastructure etc the businesses were in tune with the patterns of living of the masses that varied with the rhythms and cycles of nature. People needed different artifacts at different times of the year hence the supply was not tuned to a pump out a steady constant volume pushed month after month over the year based on average 'customer needs' to minimize operating costs to maximize profits but churned out in variable volumes in collaboration with the customers' patterns of living to meet variable demands at different times of the year. Hence these family businesses never felt a need to grow beyond the space their small shops provided them for the past 200 years. They persevered in adapting, maintaining and creating wealth within the constraints of their given space. I was indeed fascinated by the remarkable business model that not only obviates the need for constant capital infusion to keep one's neck above water but also creates unimaginable wealth for the families and others. (See a live success story of such operating model being used as a strategy in competitive environment here)

(A glimpse of the old shops running their family businesses in the Pink City, October 2011)

My visit to the Pink City was more than enlightening. I was rewarded by sudden but deep insights in to the business psyche of the Indians and a possibe model that would serve us in the future.

The new questions that arise in my mind now are:

1. What are we doing to preserve these principles in the present context?

2. Can start ups and new entrepreneurs take a leaf out of these old lessons to model their business?

3. How can we create a platform or network of such budding entrepreneurs and make them thrive and grow over the years just like Maharaj Jaisingh did in his Pink City?

4. What we need to do to move from the business models based on robustness and reliability to a business model that primarily focuses on resilience without sacrificing resilience.

5. How can we bring down the operating, inventory and product costs through design rather than through scale ups, speed of operation and the constant need for capital infusion to increase infrastructure to accommodate growing volumes?

6. All our notions about business models and operating our businesses would change once we adopt the resilience model over robustness model. That would throw up hundreds of new questions to be answered.

I have just grown to love entrepreneurs -- design thinkers of sorts, who operate in seemingly impossible situations, solving problems with their heart & guts.

I feel this resilient way of doing business through micro entrepreneurs, where individual capital investment need not be high, holds the key to shape and inspire the future economy of the world, which presently is collapsing to its death crying out for a major transformation.

Do you think the same?

 

IOU -- Trust & Deception

“You may be deceived if you trust too much, but you will live in torment if you don’t trust enough.” -Frank Crane

I shall try to bring out different perspectives on this important theme of trust and deception through three stories, each having a great moral that possibly enlightens us.

Story 1 (Perspective 1)

This is a story of the Sufi saint Junnaid as told to his disciple:

I was very thirsty and I was going towards the river carrying my begging bowl, the only possession I had. When I reached the river a dog rushed, jumped into the river, started drinking. 

"I watched for a moment and threw away my begging bowl--because it is useless. A dog can do without it. I also jumped into the river, drank as much water as I wanted. My whole body was cool because I had jumped into the river. I sat in the river for a few moments, thanked the dog, touched his feet with deep reverence because he had taught me a lesson.

"I had dropped everything, all possessions, but there was a certain clinging to my begging bowl. It was a beautiful bowl, very beautifully carved, and I was always aware that somebody might steal it. Even in the night I used to put it under my head as a pillow so nobody could snatch it away. That was my last clinging--the dog helped. It was so clear: if a dog can manage without a begging bowl... I am a man, why can't I manage? That dog was one of my Masters.

Moral: Do we trust ourselves enough? Do we trust our own abilities? Do we trust that all knowledge, happiness are to be found within us? It is matter of trust to start the journey.

Story 2 (Perspective 2)

A disciple went to Rabbi Nachman of Bratslav, "I shall not continue with my studies of sacred texts – he said. – I live in a small house with my brothers and parents, and never have the ideal conditions for concentrating on that which is important."

Nachman pointed to the sun and asked his disciple to place his hand over his face, in order to hide it. The disciple obeyed.

"Your hand is small, yet it can completely cover the power, light and majesty of the great sun. In the same way, the small problems manage to give you the excuse you need in order to hinder your progress along your journey."

“Just as your hand has the power to hide the sun, mediocrity has the power to hide your inner light. Do not blame others for your own incompetence.”

Moral: Again it is a question of trusting yourself. There is no point blaming others. We constantly deceive ourselves not others. Trusting others is not a substitute for hiding our own incompetence and mediocrity. Greed, Hatred and Delusion are the three small hands by which we hide the power and majesty of the sun. If we do so we would always get deceived. Others are not to be blamed.  

Story 3 (Perspective 3)

This is again a story on Junnaid the Sufi saint as told to his disciple.

Junnaid said, "I lost my way in a forest and by the time I reached the nearest village that I could find, it was midnight. Everybody was fast asleep. I wandered all over the town to see if I could find somebody awake to give me shelter for the night, until finally I found one man. I asked him, 'It seems only two persons are awake in the town, you and I. Can you give me shelter for the night?' 

"The man said, 'I can see from your gown that you are a Sufi monk....'" 

The word Sufi comes from suf; suf means wool, a woolen garment. The Sufis have used the woolen garment for centuries; hence they are called Sufis because of their garment. The man said, "I can see you are a Sufi and I feel a little embarrassed to take you to my home. I am perfectly willing, but I must tell you who I am. I am a thief--would you like to be a guest of a thief?" 

For a moment Junnaid hesitated. The thief said, "Look, it is better I told you. You seem hesitant. The thief is willing but the mystic seems to be hesitant to enter into the house of a thief, as if the mystic is weaker than the thief. In fact, I should be afraid of you--you may change me, you may transform my whole life! Inviting you means danger, but I am not afraid. You are welcome. Come to my home. Eat, drink, go to sleep, and stay as long as you want, because I live alone and my earning is enough. I can manage for two persons. And it will be really beautiful to chit-chat with you of great things. But you seem to be hesitant." 

And Junnaid became aware that it was true. He asked to be forgiven. He touched the feet of the thief and he said, "Yes, my rootedness in my own being is yet very weak. You are really a strong man and I would like to come to your home. And I would like to stay a little longer, not only for this night. I want to be stronger myself!" 

The thief said, "Come on!" He fed the Sufi, gave him something to drink, helped him to prepare for sleep and he said, "Now I will go. I have to do my own thing. I will come back early in the morning." Early in the morning the thief came back. Junnaid asked, "Have you been successful?" 

The thief said, "No, not today, but I will see tomorrow." 

And this happened continuously, for thirty days: every night the thief went out, and every morning he came back empty-handed. But he was never sad, never frustrated--no sign of failure on his face, always happy --and he would say, "It doesn't matter. I tried my best. I could not find anything today again, but tomorrow I will try. And, God willing, it can happen tomorrow if it has not happened today." 

After one month Junnaid left, and for years he tried to realize the ultimate, and it was always a failure. But each time he decided to drop the whole project he remembered the thief, his smiling face and his saying "God willing, what has not happened today may happen tomorrow." 

Junnaid said, "I remembered the thief as one of my greatest Masters. Without him I would not be what I am.

Moral: This story has many hidden layers of meanings on trust and deception. How much do we trust? When do we trust? Why do we trust? Who is deceiving whom? What learning opportunities are thrown up in our moments of dilemma of whether to trust or not to trust? How long does it take to trust? What might break trust? How to avoid torment? I leave it to readers to form their own perception on this last story.