Why Marwaris are successful with money?
If you travel to small villages in Shekhawati region in Rajasthan, India, you would come across with a handful of palaces dotting the area. These palaces represent the trails of one of the most successful communities in India called the Marwaris. For most of the times in Indian business history, close to 67% of Forbes listed Indian billionaires have been Marwaris. When learning about finance or investments in particular, there are quite a few remarkable insights, that you can draw upon from this community for daily life. Here in this article, we have collated the key learning’s which explain – why marwaris are successful with money?
Who are the Marwaris?
Marwaris are a business community with their names attributed to geographical origin in Rajasthan, India. They are are not ascribed to a particular caste, religion or tradition. If you ask these communities whats in their blood, they would say “finance”. In common parlance, there have been two major sets of communities in India. On one side, there is a “service oriented” class which typically enters the civil services, professions, academics etc.
On the other side, there is a “business oriented” class which dominates the Industry. Owing to these orientation, the cultural context as well as ethnic identity varies across communities. Marwaris are a subset of these business oriented segments, like Gujratis, Punjabis, Sindhis etc. which are also predominantly business oriented.
Here is a quick snapshot of the marwar and shekhawati region in particular. From here, the biggest business empires of India have originated. Churu, Sikar, Jhunjhunu and multiple small villages have acted as the nursery of most successful communities from even before the colonial era in India.
Key learnings from the Marwaris while dealing with money
With around 18% millennial population in India between the age of 35-49 and around 38% youth population between the age 20-34, you can imagine the kind of prosperity we can land into by taking right financial decisions.
However, there is a long way to go as far as financial literacy is concerned specially when it comes to investments. A lot of educated housewives, working females, students, young professionals and even mid-aged individuals rely on others while taking investments decisions.
With this context, you may want to know how a small community has dominated the world of business, finance & money. Here are the 5 key learnings, you may look forward to practice in your life, from the Marwaris which makes them succeed.
The attitude towards risk – “Don’t act out of fear”
When it comes to taking financial decisions, most Indian’s suffer from the “fear of unknown”. You may have experienced the same while buying a stock, investing in mutual fund, purchasing an insurance plan or starting off your own business venture.
There are two ways mainly, you would notice people going about it –
a) let someone else decide and then rely on their decision
b) make the decision while acting out of fear – “what if that happens”.
A Marwari on the other side is trained to believe “high risks entail high rewards”. They act with the attitude of being responsible towards their decision with a never ending belief that they will succeed.
Quick adaptability towards life situations
Marwaris, have a knack towards being flexible with their life adaptation. Whether high or low on resources, they believe that with the right attitude and effort, time would turn the results in their favor.
Owing to this approach, Marwaris responded quickly, to the onset of mughals, british, license raj & industrialization of India, as the first mover. The objective to collaborate while being responsible towards their decision, instills the community with strength for overcoming failures. The communities migrated from one part of India, to the east, south, central and west for business opportunities.
If you get bogged down with losses in your investment decisions, the first thing you should do is to adapt to the new life situation and then focus on not repeating the same mistake. Subsequently, you should persist with a never quit mentality.
With the saying “finance and business is in my blood”, a marwari exhibits the attitude required for being entrepreneurial. This involves the greatest risk of managing land, labor, capital as well as technology.
While managing a business, within a short period of time, you learn to take decisions amidst uncertainty. You learn to speculate without much data and you play with probability as well as luck.
“The core belief is you may fail many times but the one time you succeed should make up for all the failures” – a Marwari businessman.
When it comes to money, owner is the fertilizer
You may relate easily to this one as this is quite intuitive. The key element here is that money sticks to you, if you are the one who worked hard for it. And then you took decisions consciously and responsibly for using it.
Acting solely upon other’s advice is something that Marwaris avoid. They may discuss, debate or consult with others but at the end, they take their decisions will full vigour.
If you consider this analogy towards investments, you may think of this situation – You invest in a mutual fund scheme for long term using your SIPs. However, as it is your money, you keep a check on where the money is being deployed. If you feel that the mutual fund manager is making a mess, you move to another mutual fund scheme. But, you do not solely rely on the mutual fund manager’s decision to give you the best result.
Here is a quick snaphsot of Forbes top 30 marwari businesses list –
Here is another list of young marwari businessman driving the online commerce –
- Sachin Bansal & Binny Bansal – Founders, Flipkart
- Mukesh Bansal – Founder, Myntra
- Rohit Bansal – Co-Founder, Snapdeal
- Peeyush Bansal – Founder, Lenskart
- Dinesh Aggarwal – Founder,Indiamart
- Bhavish Aggarwal – Founder, Ola
- Ritesh Aggarwal – Founder, Oyo
- Ashish Goel, CEO, Urban Ladder
Follow the best practices to make the most from your right financial decisions and attitude.
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