Kuldip Maity

 For the last week or so, all we seem to have been discussing is the heatwave. It has gone beyond discomfort to the point where many feel ill when venturing outdoors. Even indoors, there is no respite from the heat (unless you are in air-conditioned comfort).

But this year is no different.

In recent years, discussions about rising summer temperatures have become increasingly common. People often debate whether summers are genuinely becoming hotter or if this is just a perception influenced by various factors.

First, let us acknowledge the scientific data regarding global temperature trends. Over the past century, there has been an obvious rise in average global temperatures, primarily attributed to human activities. Global warming is real and has undoubtedly impacted weather patterns, including the intensity and duration of summer heatwaves.

Statistical analyses conducted by climate scientists reveal a clear pattern of increasing temperatures across many regions. These findings are supported by data collected from weather stations, satellites, and other monitoring systems. Therefore, there is empirical evidence to suggest that summers are indeed getting hotter on a global scale.

However, subjective influences in our lifestyle can also influence our perception of summer heat. Humans are inherently sensitive to temperature changes, and various psychological and contextual elements can affect how we perceive heat. For instance, humidity and wind speed intensify the feeling of heat, even if the actual temperature hasn't increased much.

The urban heat island effect significantly contributes to the perception that cities feel warmer than rural areas. Concrete, asphalt, and buildings in urban environments absorb and retain heat, creating microclimates that can feel several degrees hotter than surrounding regions. As urbanization expands, more people experience this amplified sensation of summer heat, contributing to the perception that summers are becoming hotter.

Add to this the changes in our lifestyle. Air conditioners have become common in every household, making us more accustomed to comfortable temperatures throughout the day. The abrupt change in surrounding temperature also affects our perception when we venture out to non-air-conditioned areas.

Surprisingly, social media also influences our perception of summer heat. With heightened awareness of climate change and its effects, increased attention is given to extreme weather events and their implications. As a result, people may be more inclined to attribute even a slightly hot summer to broader climate trends, further reinforcing the perception of rising temperatures.

On this note, I would like to bring up the issue of planting trees. If one-tenth of the people asking others to plant trees on social media had planted a tree themselves, we would have had a much greener environment. Secondly, planting saplings should not be only regarded as a photo opportunity. We should all take proper care of the sapling to ensure it grows into a tree.

Returning to whether summers are getting hotter or just feeling hotter, we need a multifaceted approach that considers both objective data and subjective experiences.  Understanding the complexities is crucial for addressing the challenges posed by rising temperatures and mitigating their impact on human health and the environment.

A blanket statement about summers getting hotter may not apply universally and requires a nuanced understanding of regional climate.

 

 

Subho Noboborsho. This week, we started with the Bengali New Year. The Bengali calendar year 1431 corresponds to April 14, 2024, to April 14, 2025, in the Gregorian calendar. The Bengali calendar, also called Bangabda or Bangla Son, is a lunisolar calendar with 12 months. 

‘Pohela Boishakh,’ as it is normally called in Bangla, holds immense significance in the business world in the Bengali-majority regions of India. This day is celebrated with great enthusiasm and festivity. While traditionally a time for cultural and social gatherings, Pohela Boishakh also influences the business landscape, especially the MSMEs of the region, in several ways.

Pohela Boishakh is not just a cultural event but also a crucial occasion for businesses to boost sales and revenue. In the weeks leading up to the festival, markets and shopping centers experience a surge in activity as people shop for new clothes, gifts, and festive items. The ‘Chaitra Sale,’ offering discounts on traditional and modern fashion wear, further boosts the demand for clothing. As people prepare to celebrate the New Year, businesses related to accessories, jewelry, home decor, and electronics also show a significant upswing.

Like every festival, businesses launch marketing campaigns and promotional activities to leverage the festive spirit to attract customers with special discounts, offers, and festive-themed advertisements. Brands across various industries capitalize on the cultural significance of the occasion to enhance brand visibility and engagement. 

The ‘Halkhata’ ritual, a traditional custom observed by businesses at the start of the Bengali New Year, holds immense cultural and religious significance. It symbolizes a fresh start and the beginning of a new financial year, reflecting how traditional businesses used to close their financial books for the previous year and start anew. The ritual, often conducted on the first day of the Bengali calendar year, coincides with the festive occasion of Pohela Boishakh.

Haal Khata, which translates to "opening the new book," often adorned with auspicious symbols and colorful decorations, symbolizes a clean slate and the beginning of a new financial year. The ritual is conducted with great reverence and attention to detail, as it is believed to set the tone for prosperity and success in the coming year. The shop owner, dressed in traditional attire, sits at the counter or a designated shop area with the new account books placed before them. Customers and well-wishers are invited to participate in the ceremony, symbolically inaugurating the new financial year by making the first purchase or transaction of the day. With the standardization of accounting norms across the country, the ritual no longer signifies financial accountability but fosters transparency and trust between the business and its customers.

Haal Khata is culturally and socially important, bringing together members of the community in a spirit of camaraderie and goodwill. It is a time for exchanging greetings, blessings, and good wishes for the New Year. Many businesses also organize cultural programs, musical performances, and feasts to celebrate the occasion with their customers and the local community. The ritual is a cherished tradition that embodies the spirit of renewal, prosperity, and community bonding. 

Though it might have lost its significance in the digital age, by observing this age-old custom, businesses reaffirm their commitment to financial integrity and accountability and strengthen their ties with customers and the broader community.

 

 

On many occasions, I am asked this question by owners of micro, small and medium enterprises (MSMEs): “Is it advisable for MSME businesses to diversify?” To me, this is an area of ambiguity, as it depends on the business, its founder, and its performance. 

For MSMEs operating with limited resources, diversification can strain finances, human capital, and infrastructure. The need to invest in a new category or venture can stretch thin the already constrained resources, potentially harming the core business operations.

MSMEs often thrive by specializing in niche markets or specific product categories. Diversification may dilute the focus on the original market segment, and diverting mental bandwidth and resources away from the core business may decrease efficiency and effectiveness.

However, we also need to remember that in diversification, a seasonal downturn in one market may be offset by steady sales in another. Diversification enhances the resilience of MSMEs by making them less vulnerable to economic downturns or industry-specific crises. A diversified portfolio can help cushion the impact of adverse events, ensuring the continuity of business operations even during challenging times. We saw this during the pandemic, especially the intermittent lockdowns.

From the brand perspective, introducing unrelated products or services under the same brand umbrella can dilute its identity and confuse customers. MSMEs may undermine the reputation they've built in their core market by associating with unrelated or inferior offerings. However, if planned well, introducing new products or expanding into new markets can reinforce the MSME brand presence and enhance its visibility. A diversified portfolio demonstrates innovation, adaptability, and a commitment to meeting diverse customer needs, thereby enhancing brand reputation and customer loyalty, which should positively affect revenue through cross-selling and upselling.

Markets are dynamic, with consumer preferences, technology, and regulatory landscapes constantly evolving. Diversification equips MSMEs with the agility to adapt to these changes effectively. It allows them to pivot their strategies, explore new business models, and capitalize on emerging opportunities, ensuring long-term sustainability and relevance in the market. However, we should also appreciate that managing diverse business interests adds complexity to operations. MSMEs may find it challenging to maintain standards, streamline processes, and ensure consistent customer satisfaction across multiple ventures. This complexity can hinder agility and responsiveness to market dynamics.

MSMEs can spread their risk across multiple sectors or customer segments by diversifying their business categories or entering new markets. This may reduce the dependency on a single source of revenue and provide a buffer against market disruptions. One may argue that venturing into new markets or product categories exposes MSMEs to additional market risks. These risks include demand fluctuations, regulatory changes, and competitive pressures. Unlike larger corporations with greater financial buffers, MSMEs may struggle to weather adverse market conditions in multiple sectors simultaneously.

As I said earlier, there is no fixed rule.

 This is my first blog in the financial year 2024-25, and I wanted to write about my expectations for the next 12 months. 

As with every election year, this year starts with uncertainty. However, I am sure the country will reach a consensus for the general good. Hence, we should expect renewed positivity in business.

In its latest South Asia Development Update, the World Bank has projected robust growth of 6.0 percent for the region, driven predominantly by India’s strong economic performance. India has been regarded as the region’s economic powerhouse. This growth is largely attributed to the resilience of the services and industrial sectors. Even Morgan Stanley is bullish about the Indian economy, raising its GDP growth forecast to 6.8 percent for 2024-25 from 6.5 percent estimated earlier.

Market experts say FY24 was an outstanding year for the Indian stock markets. The BSE Sensex saw an incredible rise of about 24 percent, outperforming prior years’ performance and generating substantial wealth for investors. This growth outpaced many global counterparts, showcasing the market's resilience and strength. The predictions point to an optimistic trend into the fiscal year 2025, with volatility mostly triggered by events happening worldwide.

In my opinion, the digital payments ecosystem in India is well set for growth and will drive smartphone penetration, internet connectivity, and digital transactions. Fintech innovations, including digital wallets, UPI payments, and contactless transactions, are expected to gain momentum, leading to greater financial inclusion and convenience for consumers. We can also expect the business growth of cyber security firms, which guard the fintech innovations.

ESG considerations will gain prominence in India's financial landscape. Investors increasingly prioritize sustainable and responsible practices, accelerating the adoption of green bonds, renewable energy projects, and socially responsible funds. As awareness of climate change and social issues grows, ESG investing will likely become mainstream during the financial year.

However, will all be as positive as we expect? I am curious to see how inflationary pressures drive policymakers' monetary decisions. Rising commodity prices, supply chain disruptions, and geopolitical tensions may continue contributing to inflationary concerns, necessitating a cautious approach toward monetary policy. The Reserve Bank of India has a task ahead of itself to maintain a delicate balance between supporting economic growth and managing inflationary risks in the financial year 2024-2025, which I am sure will be handled as efficiently as we have witnessed in the past.

Summing up, the financial year 2024-2025 in India may witness various challenges and opportunities across various sectors. Proactive policies, innovative solutions, and resilient business models will drive inclusive and sustainable growth as the country navigates through economic recovery, digital transformation, and sustainability imperatives.

 

Holi, the vibrant festival of colors, holds significant cultural and economic importance in rural India. Rooted in ancient traditions and folklore, the festival celebrates the arrival of spring and plays a pivotal role in bolstering the rural economy. From agricultural practices to local businesses, the impact of Holi resonates within rural communities, fostering economic growth and vitality.

Holi finds its origins in various mythological tales and religious scriptures. According to Hindu mythology, the festival commemorates the victory of good over evil, with the burning of Holika symbolizing the triumph of righteousness. There is another story of Lord Krishna and Radha playing with colors, which became the tradition of playing with color and water. People play Holi and apply color to their loved ones, which symbolizes love, friendship, and the arrival of spring. This cultural significance translates into a period of jubilation and unity within rural communities, transcending barriers of caste and creed.

But Holi is not only about celebrations. The economic impact of Holi extends much beyond the rural economy. Local businesses experience a surge in demand for essential commodities and festive goods as households prepare for the celebrations. From the preparation of traditional sweets such as gujiya and jalebi to the purchase of colorful attire and decorations, the market witnesses a flurry of consumer activity, driving sales and revenue for MSMEs. The preparation for Holi results in a significant increase in revenue for local businesses as people buy colors, sweets, and traditional attire.

Fashion purchases generally revolve around the sale of white and colorful apparel. Consumers are not much concerned with longevity, as it is normally for one-time wear. Therefore, the rush is more towards local textile shops and boutiques that can offer the best value for money and stock Holi-themed clothing.

The demand for Holi-specific sweets, such as gujiya and jalebi, varied snacks, and festive beverages, such as thandai, goes up sharply, benefiting the local sweet shops and bakeries. As for all festive occasions, the evenings of family get-togethers are filled with culinary indulgences from local restaurants.

Lately, organizing big-budget Holi parties has become a lucrative business. Event management companies and local clubs organize special Holi events, including music, dance, and color play, attracting guests through ticket sales. These events boost the business of event venues, entertainment groups, and event management companies, generating revenue for local service providers.

Holi also provides a significant boost to the travel and hospitality sector as people travel to celebrate with friends and family, especially if the day falls as an extension to the weekend as this year. There are many who also travel to participate in well-known Holi events in places such as Mathura, Vrindavan, and Jaipur. Hotels, guesthouses, homestays, and travel operators thrive owing to the influx of tourists, as it increases demand for accommodation, food, and transportation services.

This discussion on business generated during Holi would be incomplete if we do not discuss the sale of colors, water guns, and other related items. While these contributed to large-scale chemical manufacturers, the recent inclination towards the use of herbal and organic colors has boosted the sales of MSME manufacturers.

The economic ripple effect of Holi is evident in the increased income, employment, and livelihood opportunities generated for artisans, farmers, vendors, and service providers in rural India. The festival catalyzes entrepreneurship and innovation, inspiring local initiatives aimed at promoting indigenous crafts, culinary delights, and cultural heritage.

Holi also announces the advent of spring and the celebration of the beginning of the cropping season after a lean period. That is a discussion of some other blog.

But we also need to be cautious that such businesses facing demand spikes should be able to sustain themselves the year round. While MSME businesses should take all measures to benefit from the seasonal business, they should ensure steady sales during the rest of the year.

 My last blog discussed the pros and cons of women entrepreneurs operating out of a home office. We realized that though the options offer flexibility for women entrepreneurs, there are also social and mindset challenges to overcome. The biggest issue that our women must tackle is the isolation and loneliness of home offices. Add to that the difficulties in being taken seriously and gaining respect in a male-dominated business environment.

The lack of physical presence in a traditional office environment can make it harder to assert authority, build professional relationships, and network effectively. This can hinder the advancement opportunities that they come across. With the limited access to resources and support networks vital for business growth, these opportunities might crop up once in a lifetime. For example, a woman entrepreneur working from home may face skepticism or discrimination when her child becomes visible on the screen while she is trying to pitch her ideas to potential investors or clients. It is sad, but can one ignore the harsh realities?

Coming back to the issue of the isolation and loneliness associated with remote work of the team, it can take a toll on the mental health and well-being of women entrepreneurs. Working from home can be isolating, especially for an entrepreneur who is supposed to thrive on social interaction and collaboration. The absence of colleagues and peers to bounce ideas off, seek advice from, or share a break with can lead to feelings of loneliness and disconnection. This can negatively impact motivation, creativity, and overall job satisfaction. For instance, a woman entrepreneur may feel isolated and demotivated when she joins her peers working in physical office environments. A simply shared joke at work can create a huge mental trauma of being left out.

The positive side is that women workers can overcome these challenges and mental pressures by maintaining regular communication with colleagues, clients, and other professionals. Here are a few essential tips that help combat isolation: Use as many video calls as possible with the team. Never miss out on opportunities for physical meetings and brainstorming sessions. These can recreate the camaraderie and collaboration in traditional office settings. Schedule regular check-ins with coworkers to help them stay connected and informed about projects and initiatives.

In the days of growing social media influence, women entrepreneurs may try joining online communities and professional networks related to the industry or interests. These can provide opportunities for networking and social interaction. Through these platforms, they can find avenues for connecting with like-minded individuals, sharing knowledge and resources, and building meaningful relationships. Engaging in these communities by participating in discussions, attending virtual events, and reaching out to fellow members can help alleviate feelings of isolation and foster a sense of belonging.

Establishing a routine incorporating breaks and social activities throughout the day can help break the monotony of working alone. Taking short walks outside, practicing mindfulness or meditation or scheduling virtual breaks with colleagues can provide much-needed mental and emotional stimulation and prevent feelings of isolation from escalating.

Finally, even in rural settings, women entrepreneurs may try creating co-working or shared spaces near home as an alternative to working from home. These can provide opportunities for social interaction and collaboration with other entrepreneurs while staying a stone’s throw away from home.

A win-win, we can say!!!

 

 

Many micro-entrepreneurs start their journey by setting up their businesses at home. Whether it's a small factory or an office to interact with other stakeholders, operating from home is a paradigm shift in how we work and comes with challenges. While it offers flexibility, comfort, and freedom, it also demands a high level of self-discipline, which is the cornerstone of productivity and success. Women entrepreneurs associated with VFS Capital have unique hurdles to cross.

One of the biggest challenges of operating from home is that it multiplies the independence of an entrepreneur and the lack of external accountability. Since entrepreneurs may not have supervisors, their physical presence in an independent office helps monitor progress. The set hours, structured routines, and working in a team help the entrepreneur to ensure focus at work. At home, there is unparalleled autonomy, and succumbing to procrastination or distractions is easy. From household chores to social temptations, countless distractions are vying for our attention, making it essential to cultivate self-discipline to stay on track. While autonomy can be liberating, it also requires a heightened sense of responsibility and self-control to stay focused and productive amidst myriad distractions.

Women entrepreneurs often have additional responsibilities outside their businesses, such as childcare, household chores, and caregiving for elderly family members. Balancing these responsibilities with running a business from home can be overwhelming, leaving women feeling stretched thin and unable to devote sufficient time and energy to their enterprises. These women entrepreneurs must also contend with societal expectations and norms regarding their roles and responsibilities. While men are praised for having ambition and dedication to their careers, women may face judgment and criticism for prioritizing their businesses over traditional gender roles such as caregiving and homemaking. This can lead to guilt and self-doubt, undermining women's confidence and motivation to succeed in their entrepreneurial endeavors.

Another positive outcome of the office is the social support received by the team members. For example, a woman entrepreneur who is also a mother of an infant may get support from the other women members of the team if they are working together in an external setup. That way, she can concentrate on addressing the business issues while having the confidence that her child is being cared for.

Entrepreneurs and all family members need to tune their expectations in case they are operating out of home. Everyone has to appreciate and respect the physical boundaries of the home and office, even if they are on the same premises. Other than emergencies, a person should not be disturbed by issues at home. 

Operating a home office offers women entrepreneurs flexibility and independence but presents unique challenges that can impact their success and productivity. Women entrepreneurs face a myriad of problems when running a business from home. However, with determination, resilience, and access to support networks and resources, women can overcome these challenges and build successful and sustainable businesses from the comfort of their homes.

Let us discuss this in more detail in my next blog. 

 

An entrepreneur in the micro-enterprise sector is constantly faced with critical decisions that shape the trajectory of the business. One such decision is the choice between drawing profits for personal use and reinvesting them for sustainable growth. This is a pivotal decision that requires careful consideration of various factors, like the current state of the business, growth prospects, and personal needs.

Drawing profits from the business is a tempting option, especially when it is generating healthy revenues. As an entrepreneur, it is natural to want to reap the rewards of your hard work and dedication. However, many times this approach can prove to be short-sighted, hindering the long-term growth of the business.

Withdrawing profits from the business may essentially mean reducing the capital available for reinvestment. This limits the company's ability to expand operations, invest in new initiatives, hold inventory for spikes, or enter new markets. In the fiercely competitive micro-enterprise landscape, where innovation and agility are paramount, this can put the business at a major disadvantage.

Furthermore, drawing excessive profits can compromise the financial health of the business. In times of economic downturns or unforeseen challenges, a robust reserve of capital can be a lifeline. Without adequate reserves, the business may struggle to weather the storm and may even face closure. While organizations such as VFS Capital are always eager to help such enterprises within the purview of process guidelines, nothing beats their reserves.

However, while reinvesting profits back into the business is crucial for long-term growth, it is also essential to meet personal financial requirements. For an entrepreneur, personal financial obligations, such as family expenses, debt repayment, and retirement planning, need to be addressed on a priority to ensure a sound mental state which again helps the business growth. A typical profile of VFS Capital customers may be left with no other option but to withdraw regularly. Many start their entrepreneurial journey guided solely by the fact that they cannot make ends meet. For them, growth may seem more like a luxury, while personal obligations are a harsh reality.

Therefore, it is essential to adopt a disciplined approach to financial management. This involves setting aside a portion of profits for personal needs while ensuring that a part of profits is reinvested back into the business. Establishing clear financial goals and sticking to a budget, helps ensure that both the business and personal finances are managed effectively. 

This financial discipline is the core to the prosperity of micro-entrepreneurs and those who can operate under the guidelines can grow beyond their current state, into the world of small enterprises.

 

As promised, I am back with another blog on the difference in qualities and responsibilities between a corporate and an MSME leader. As explained in the last blog, while there are many common elements, there are many substantial differences between the two roles. 

Corporate leaders play a mentor’s role in shaping the culture of their organizations. A good leader will promote a culture of innovation, collaboration, and diversity, which can be challenging but necessary for a large, diverse workforce. In the MSME environment, leaders directly influence the organizational culture and often get directly involved in daily operations and interactions with employees. They create a positive work environment, fostering teamwork, creativity, and mutual respect. It can be said that it is easier to implement a cohesive culture in an MSME than in a corporation.

Given the size and structure of their organizations, corporate leaders may adopt a more formal and hierarchical leadership style. They must rely on established policies, procedures, and protocols to guide their decision-making and employee interactions. MSME leaders, on the other hand, need to rely more on an informal leadership style. Since they are closer to the team and more involved in day-to-day operations, they must often lead by example and stay more accessible to their teams. It does say, though, that corporate leaders stay detached from the employees, but they need to juggle around constraints of time, location, and other dynamics.

Be it a corporate or an MSME, risk management is a critical part of every leader’s KRA. In large corporations, the risks are typically diversified across multiple business units and regions. Before implementing robust risk management strategies to protect the organization's interests, the leader must consider various factors and implications in different associated departments. In an MSME, the risks are more concentrated due to the operations' scale and lack of diversity. A vigilant MSME leader can identify and mitigate risks promptly and locally before they cause a significant impact on the business. The associated impact on other business processes may not be significant, or at least will be controllable for the MSME.

Leadership style in an MSME is more of individual charisma, which can also impact employee retention or attrition. It is synonymous with that of a senior manager of an isolated subsidiary of a corporation, the difference being that the ownership of the business decisions directly impacts the leader’s career, who seldom has the option of quitting when the days get tough. On the flip side, the corporate leader may have to carry the burden of leadership goof-ups of the senior management layer below. However, in such situations, the personal impact or liability of the corporate leader may be much more limited.

The objective of these blogs was to emphasize that all the management and leadership lessons being dished out in digital media may not be directly applicable to all of us. While it is always beneficial to learn from them, it is not necessary to change our style based on a non-qualified delivery. As a leader, ultimately, we need to do what our instinct guides us to do, backed by evidence and data. 

There have always been differences, but after the COVID-19 pandemic, digital media is swamped by leadership thoughts and advice from content creators of various disciplines. As I watch a few, I can’t help but wonder why very few of them set the context before jumping into the leadership dos and don’ts. 

Leadership is a multi-faceted discipline that varies across industries and organizational sizes. In a large corporation, a leader is normally a salaried representative who has grown through a system shared by subordinates. However, leaders of micro, small, and medium enterprises (MSMEs) are often the owners and have started or inherited the businesses. Therefore, while both types of leaders have a lot of contributions to the progression of their team, it is important to understand that the role of a leader in a large corporation is very different from that of a leader in an MSME.

A corporate leader may operate in a large-scale organization with a global or national presence, giving them a wide scope of operations that they often manage through multiple business units, departments, or divisions. An MSME leader, on the other hand, operates in a smaller-scale organization with limited geographic reach. They are typically responsible for managing a single business unit or department. The outlook of both may be different. I will not be surprised if one talks of a hands-on management style while the other advocates a passive approach.

MSME leaders often have limited resources compared with their corporate counterparts. They are more frugal and strategic in resource allocation, often motivating the team members to wear multiple hats and finding creative solutions to achieve the desired outcomes. Along with managing significant budgets and resources, corporate leaders have a large team of employees, extensive infrastructure, and substantial financial assets. They must make strategic decisions about where to allocate resources to optimize the outcomes. Here, we may also find a process-driven approach to eliminate redundancies and ensure every task is in sync with the others. Deviations may be counterproductive unless communicated collaboratively.

Corporate leaders engage with various stakeholders, including shareholders, customers, suppliers, regulators, and the broader community. One of their primary tasks is to resolve conflicts between these groups and ensure that all of them trust the leaders to ensure the organization's long-term success. MSME leaders also engage with stakeholders, but their focus is often more localized. They may have closer relationships with customers, suppliers, and community members, and they must prioritize the needs of one over the other to maintain trust and loyalty. Any perceived breach of trust may be detrimental to an MSME leader.

While corporate and MSME leaders share some common leadership principles, such as strategic vision, decision-making, and people management, the differences are more than what can be accommodated in a single blog. I shall be back with more. 

 

Yesterday was Saraswati Puja, a very auspicious day, especially for those aligned with education and art. Devi Saraswati has always generated a lot of curiosity in my mind because of the various forms and mythological tales around her.

Revered in Hinduism as the goddess of knowledge, music, arts, wisdom, and learning, Devi Saraswati holds a significant place in the pantheon of Hindu deities. Adorned in white, she is often seated on a lotus with a veena (a musical instrument) in her hands.

A few say that her name, Saraswati, is derived from the Sanskrit words "saras," meaning flow, and "wati," meaning she who has flow. This name aptly characterizes her association with the flow of knowledge and creativity. Saraswati emerged from Brahma's mouth as he meditated to create the cosmos, while in the East Indian states of Bihar, West Bengal, Orissa Saraswati is considered to be a daughter of Durga, visiting us along with her sister Lakshmi and her brothers Ganesha and Karthikeya during the festive occasion of Durga Puja.

The association between Saraswati and education is further elucidated in the story of her role in spreading knowledge to humanity. Legend has it that when the gods and demons churned the cosmic ocean (Samudra Manthan) to obtain the elixir of immortality (Amrita), Saraswati emerged from the churning waters holding a book, a rosary, and a musical instrument. She bestowed these divine gifts upon humanity, symbolizing the importance of knowledge, spirituality, and the arts in attaining enlightenment.

In Zoroastrianism, Saraswati is said to be known as Sraosha, the guardian of earth. Sraosha (“obedience”) is also the wife and messenger of Ahura Mazda, and her role as the "Teacher of Daena", Daena being the hypostasis of both "Conscience" and "Religion". She also guides the souls of the deceased to find their way to the afterlife. She is also known as a guardian deity in Buddhism who upholds the teachings of Gautama Buddha by offering protection and assistance to practitioners. Similarly, Saraswati finds mention in Burmese, Chinese, Thai, Japanese, and other cultures.

The worship of Devi Saraswati is deeply rooted in the Hindu tradition and is celebrated with fervor during the festival of Vasant Panchami. Devotees offer prayers, seek her blessings, and engage in activities that promote learning and creativity. Saraswati Puja, a ritualistic worship dedicated to the goddess, is conducted in educational institutions, homes, and temples, underscoring her significance as the patroness of education. Through her worship, devotees express their reverence for knowledge, seek guidance in their academic pursuits, and invoke Saraswati's blessings for intellectual growth and enlightenment.

Apart from all the above, I have always looked forward to this auspicious day since childhood. This was the day, when we did not have to study and only after the Saraswati Puja were we allowed to have the delicious jujube berries!

 

It has been over two decades since I have been associated with VFS. It has been over two decades that I have been interacting with women entrepreneurs running micro-organizations. And it has been over two decades that I am learning from them.

Not a day passes without me learning new life lessons from the women entrepreneurs of VFS Capital. While time and again I have shared individual instances, let me take a shot at bucketing the takeaways from them. 

Adaptability in the Face of Adversity: As the COVID-19 pandemic disrupted businesses globally, many women micro-entrepreneurs swiftly adapted to the changing circumstances by leveraging digital platforms and reimagining their business models. Rather than succumbing to setbacks, they pivoted with agility, demonstrating the power of resilience in times of crisis. 

Innovations for Sustainable Growth: Most VFS Capital customers face economic uncertainties and supply chain disruptions. However, their ingenuity is showcased through innovative solutions that they develop. From creating homemade products to adopting eco-friendly practices, our customers have embraced sustainability as a cornerstone of their business strategies. These initiatives drive growth and contribute to environmental and social causes.

Community Collaboration and Support: The JLG model through which our women customers acquire finance from us showcases the importance of community solidarity. Women entrepreneurs join hands, forming support networks and sharing resources to navigate their challenges as a community. Collaborative efforts strengthened individual businesses and fostered a culture of mutual aid and empowerment.

Resilience in Policy Changes: Our country’s economy is undergoing several policy shifts and regulatory ambiguities. However, rather than being deterred, women entrepreneurs exhibited resilience and adaptability. They engage in advocacy efforts, voice concerns, and seek clarity through dialogue with VFS representatives but seldom resist change. Their proactive approach highlights the importance of civic engagement and advocacy in shaping a conducive business environment.

Empowerment through Education and Skill-building: Despite facing systemic barriers in their upbringing, our women micro-entrepreneurs prioritize education and skill-building, sometimes for themselves and definitely for their children. They participate in training programs, workshops, and capacity-building initiatives, equipping themselves with the tools necessary for success in a rapidly evolving marketplace. By investing in continuous learning, VFS customers empower themselves to seize opportunities and overcome challenges.

Digital Inclusion: With low access to education, one would think that the rural women entrepreneurs of micro-businesses would find it difficult to access emerging digital technologies. But that is not the case. Recognizing the importance of digital inclusion, VFS customers have readily adapted the initiatives launched to bridge the digital divide by acquiring the necessary skills and resources to thrive in the digital economy by harnessing the power of technology. And the outcome has been evident. VFS customers expanded their market reach and unlocked new growth avenues.

We see a shift in societal attitudes towards women in entrepreneurship. As micro-entrepreneurs gained visibility and recognition for their contributions, traditional gender roles were challenged, paving the way for greater gender equality and inclusivity in the business sphere. The success stories of the women entrepreneurs of VFS Capital serve as inspiration, reshaping perceptions and fostering a more conducive environment for women-led businesses.

 

 

Another critical resolution needs to be mentioned as I end this series.

Everything else will fall apart if our health is not sound. In today’s fast-paced and demanding world, a healthy lifestyle is not just a luxury; it's a necessity for overall well-being and productivity. And by health, I mean both physical and mental well-being. 

I am not implying that we necessarily need to hit the gym, meet a mental health counselor, or employ a personal health coach, though all are good options to consider. Simple, impactful choices, such as eating nutritious meals, staying hydrated, and engaging in regular physical activity, can make a substantial difference. The emphasis here is not on complex or time-consuming routines but sustainable, achievable changes that align with our busy lifestyles.

With the rise of sedentary lifestyles, increased stress levels, and easy access to unhealthy food choices, individuals are more susceptible to conditions like obesity, heart disease, and mental health disorders. By making personal health a resolution, we commit to adopting habits that can help prevent these issues and contribute to a longer, more fulfilling life.

The ongoing global health challenges call for a renewed emphasis on the importance of a robust immune system. As we face potential threats from various illnesses, ensuring our bodies are well-equipped to fight infections becomes paramount. A healthy lifestyle, including regular exercise, balanced nutrition, and adequate sleep, strengthens our immune system. 

The fast-paced lives that we have started living often lead to elevated stress levels. Chronic stress can have detrimental effects on both our physical and mental health. We can effectively manage stress and promote mental well-being by incorporating mindfulness, meditation, or regular walks into our daily routines. This enhances our ability to handle challenges and improves our overall quality of life.

It is important to note that personal health directly impacts our productivity and efficiency. A healthy body and mind enable us to perform at our best in our professional and personal pursuits. When we prioritize our health, we are better equipped to meet the demands of our responsibilities, leading to increased success and satisfaction in various aspects of life.

As we embark on this year, setting resolutions related to personal health is an investment in our future selves. A commitment to self-care pays dividends in the long run in terms of longevity, vitality, and overall life satisfaction. In 2024, where the world continues to grapple with uncertainties, taking charge of our health is a proactive and empowering step towards creating a resilient and thriving future.

On the other hand, I would like to express caution against going overboard without taking proper professional advice. Through practical and achievable changes, we can build a foundation for a healthier future for ourselves and the communities we are a part of.

 

Let’s discuss the third resolution. 

It is a no-brainer that the Year 2024 will witness a lot of tech advancements, especially in artificial intelligence and machine learning. A substantial group feels that this will be a threat to human jobs. Even if we agree, we have two choices: fight AI or use it to our benefit.

Leveraging AI for our benefit requires a pragmatic approach that embraces its potential while mitigating the risks. Striking a balance between human values and technological progress is essential for a harmonious world ahead.

While coexisting with AI, we must remember its capabilities and limitations. AI excels in processing vast amounts of data and performing repetitive tasks with precision but lacks the emotional aspects of intelligence that humans possess. For years, we have been rating emotional quotient (EQ) over intelligence quotient (IQ) and not for no reason.

Integrating AI into our lives should prioritize tasks where its efficiency can complement human abilities rather than replace them.

However, coexisting with AI also demands careful consideration of its ethical implications. As AI systems get more integrated with our lives, issues of privacy, bias, accountability, and many more will keep cropping up and must be addressed upfront instead of brushing them under the carpet. Striking a balance between AI benefits and safeguarding the individual rights of humans is non-negotiable. 

Robust regulations and ethical frameworks must govern the development and deployment of AI-based technologies.

Transparency in AI-based decisions is vital to building trust between humans, especially in geographies of low technological understanding, like rural India. While tech professionals may understand how AI algorithms arrive at specific conclusions or recommendations, these probabilistic results might seem sacrosanct to a common person, leading to many accountability issues. 

Absolute and non-negotiable transparency can only help to mitigate such biases.

Before we welcome Artificial Intelligence and decide to co-exist with it in our daily lives, we need to facilitate interdisciplinary collaboration involving experts from diverse fields, including technology, ethics, and sociology, who may contribute to a holistic understanding of the implications of AI integration. This collaborative approach will lead to the development of responsible AI technologies that align with human values and societal needs.

So, while we resolve to coexist with AI, we require a balanced and thoughtful approach. This can only be possible by harnessing the efficiency of AI in areas where it excels, creating a future where technology complements, rather than replaces, human capabilities. Ethical considerations, transparency, and interdisciplinary collaboration are key to ensuring a harmonious relationship between humans and AI. As we navigate this evolving landscape, we need to remain vigilant, continuously reassess our approach, and strive for a future where AI's integration enhances humanity's well-being.

I admit that we cannot stop the progress of AI, but there is a difference between being forced to accept and willingly doing so.

 

Continuing the discussion on the resolutions we might consider adopting in 2024.

I believe the second most important aspect of our growth and well-being will be achieved through collaborations and partnerships.

Gone are the days when we needed to do everything ourselves. We are rapidly moving towards the specialization model, concentrating on our core competencies. This model of strategic partnerships and joint efforts has numerous benefits that contribute to the overall success of all the businesses involved. The collaborative approach fosters innovation, enhances efficiency, and opens new opportunities.

The primary advantage of collaboration lies in the fact that companies concentrate on delivering what they do best while leaving the rest to another set of experts. Whether in terms of expertise, technology, or resource pooling, a synergistic effect allows them to tackle challenges that might be insurmountable individually. This sharing of resources not only optimizes costs but also accelerates the development and implementation of new ideas.

Efficiency gains are a natural outcome of such partnerships. By leveraging each other's strengths, businesses streamline processes, reduce redundancies, and improve overall operational efficiency.

Innovation is another key aspect that thrives. When the best collaborate, they bring in diverse perspectives and skill sets. Such diversity sparks creativity and innovation. Opportunities for joint research and development help businesses make path-breaking advancements in an environment of high volatility that does not allow mistakes. Collaboration provides the safety net instrumental in risk mitigation as well. Since the risks are spread across multiple entities, unforeseen challenges like economic downturns, regulatory changes, or technological disruptions are minimized, providing greater resilience and adaptability to a constantly changing business environment.

The only caution we need to embed in our systems and processes is that of effective communication. Here, open and transparent communication channels foster trust and understanding. Clear and documented expectations, responsibilities, and goals ensure that all parties are on the same page, minimizing misunderstandings and conflicts.

The importance of collaboration between businesses can never be overstated. As we navigate the complexities of the modern marketplace, embracing collaboration in Year 2024, collaboration is no longer a choice but a necessity for long-term success. By working together, companies can achieve outcomes where the total is far more than the sum of outcomes from individual efforts.

In 2024, let us resolve to collaborate with others wherever our needs and characters match. There is no more need to be a ‘Jack of all trades, master of none.’

 

 

As we warm up for 2024, I would like to discuss a few important resolutions we should make for the year. This blog is the first of the series.

Maintaining a good credit score is extremely important for personal and business financial well-being. A high credit score is a testament to the individual's or the company's outlook toward developing creditworthiness and reflects on their financial responsibility. 

Since I regularly interact with several aspiring entrepreneurs, I take up the business aspects first. In the business world, trust is paramount. Trust includes making payments in line with the credit terms. A third-party score on that aspect is vital for business partners. A positive credit history can be key in securing finances for expansion, purchases, or operational needs. Lenders and investors view a high credit score as an indicator of a business's ability to manage its finances responsibly.

A good credit score can also lead to reduced overall borrowing costs. A good score is particularly important for small businesses that may be more sensitive to fluctuations in the cost of borrowing. It allows businesses to allocate more resources to growth initiatives rather than servicing high-interest debt.

Having a good credit score also enhances a business's reputation and credibility. Suppliers, partners, and customers view a strong credit profile as a sign of reliability and stability. This trust allows for better trade terms, favorable contracts, and collaborative partnerships.

On the personal front, it is equally important. Individuals with high credit scores open doors to various financial opportunities. One of the key benefits is the ability to secure loans and credit cards at favorable terms. A higher credit score often translates to lower interest rates, whether it's a mortgage for a new home, an auto loan, or a personal loan for unexpected expenses. Lower interest rates can lead to substantial savings over the life of the loan.

Maintaining a good credit score may also positively affect insurance premiums and rental applications. Many insurance companies use credit scores to determine premiums, linking financial responsibility to the likelihood of filing claims. Landlords and leasing companies also consider credit scores when evaluating rental applications, as they provide insight into an individual's reliability in meeting financial promises made.

As digital transactions grow, credit cards also grow in importance. A good credit score also plays a crucial role in securing favorable terms for credit cards.

Individuals with higher credit scores are more likely to be approved for cards with lower interest rates and better rewards programs. So, good credit scores save money on interest payments and provide opportunities for cashback, travel rewards, and other perks.

A good credit score is a powerful tool that can unlock various opportunities. By consistently demonstrating financial responsibility, individuals and businesses can position themselves for long-term stability and growth. 

Let us resolve to monitor and manage credit scores diligently, ensuring a solid foundation for future financial endeavors.

 

 

 

Hope everyone had a grand start to 2024.