Kuldip Maity

 

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.