Experts at PricewaterhouseCoopers (PwC) claim that India will overtake United States as the world’s second-largest economy by 2050. Currently India is the 6th largest economy in terms of GDP after it surpassed its colonial masters United Kingdom. This tremendous feat was achieved not only because India already has existing and thriving large businesses. But the explosion of huge number small businesses, start-ups, and entrepreneurial initiatives played an equal and important part in it.
Today India has around 48 million small businesses, double the number of small companies in the US. According to Indian government data, Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the country’s GDP, 45 percent of the manufacturing output, and 40 percent of the country’s total exports.
To add to these figures, India comprises of a number of thriving and successful small businesses which still work on the traditional framework they have been following up since ages. These small businesses majorly based out in small towns and villages create 1.3 million jobs every year and provide the largest share of employment after agriculture. Lacs of small scale industries of India are still based on patriarchy, hierarchy and are miles away from the modern scientific process other industries are working on. Still, these companies and businesses form an intrinsic part of the rural Indian subcontinent and contribute hugely to the total GPD of the country.
While some entrepreneurs and young business men take formal education from engineering and business schools there are many who have their successful business yet don’t have a formal education. In such a situation in India, it is very difficult to conclude if a formal education is a mandatory to the success of the business. Yet, below are some of the points which needs attention if one needs to objectively look at the effect of academics on the success of the business.
Scientific knowledge
As mentioned above, there are variety of businesses which still thrive on traditional processes. In rural India, businesses such as farming, pottery, cobbling, tailoring, grocery, etc are small scale traditional businesses done through manual work with no modern machinery or processes. Formal education can have a great positive impact on such businesses and help them stay in the race to cater to the customer demand. Especially in farming, if the younger generation take formal degree in agriculture, it can considerably help lessen the burden of loans and reduce the farmer suicides. With modern way of irrigation and knowledge about pesticides, fertilizers, it can prove to be a boon to the sons of the soil.
Sustainability
Any business require flexibility and an ability to adapt to the changing situations and demands of the customer. Something which can be learnt from the example of the mobile giant Nokia – it could not sustain the changing environment and hence finally lost out on a huge business. An entrepreneur, if well-educated and aware about the dynamics of the business can help the business not only in retaining the existing market but also in expanding it.
Accepting the shortcomings
It takes big level of maturity and intelligence to accept the shortcomings of the business and work on it. A formal business education provides a mathematical and scientific approach to understand the shortcomings of the business but at the same time also gives the ways to overcome it and plan the future business. It also gives future predictions based on proper business analysis which can help the entrepreneurs to design their strategies. Formal education also guides the entrepreneurs to be prepared for sudden business problems and emergencies.
Technological shift
Twenty first century is proving to be a century of technology where almost 60% of customers have access to smart phones and cheap internet which is proving to be big medium for small and medium scale entrepreneurs to push their business. In such a situation, formal education regarding digital marketing, online sales, customer behavior, probable customer base and choices helps a great deal to increase the sale. It also helps small businessmen to bridge the geographical gap and reach out to customers in far off land. A detailed study of customer base and requirements can be carried out which can prove to be extremely beneficial for sustaining the competition.
Learning important skills
Good entrepreneurship means the person should have situational leadership, negotiation skills, effective communication, good presentation and strong execution skills. Only a formal education can ensure that these skills are induced in the person. A structured way of learning will not just help people to stay focused during the program schedule, but more importantly gives an opportunity to interact with fellow professionals, discuss issues and challenges, power the thoughts, create those sparks, etc. These courses/programs can help the person come up with a great business idea, shape up an idea, develop an interesting feature, solve some complex business problems, and many more.
