Diversity in population! A gift or a curse for business?

We all know that India is a nation with a huge diversity in population. People in India have various kinds of culture. Diversity has played a major role in shaping the business in India. On one side, it has made huge sums of profit for a company and on other side it has made a company incur losses too. So now the question arises that- does diversity in population affect a business a lot?

Diversity brings in many challenges. For Example, lack of agreement is not good for any business. In fact, it becomes troublesome for the owners to balance their focus on profit motive and his/her costs. But then again, the lack of diversity within many large company has lead to a narrow view point with regards to an idea of an ever-changing diverse world.

There are not many sources which can confirm about the origin. But, we hear big names of business leaders who reveal that how business have been directed by the path created by the first-generation owners. Lets take the example of Ambani. He was the founder of Reliance enterprise. Many people don’t know but, his early life was quite a struggle. He has seen ups and downs while he was setting up the foundation.

During the 2000’s, India experienced a birth of a new business culture. But due to changes in mindset of people, business strategies changed. Businessmen were more influenced by western culture. Changes in business culture has led to change in doing ease of business and has led to innovation and development of new product in the markets as well. Not only, in Reliance industries but also Tata, Aditya Birla group, Adani group, Wipro group and many more have reflected growth and innovation.

In urban cities, it is observed that most of youths want to start their own business despite their financial strength. That is probably the reason many start-ups fail.

Many western countries, it is also seen that most of the businesses are handled by the family as a group. This could be the setup which has been passed down by their forefathers or their own ideas too! But the thing to see is the family running the business like a single unit. This removes the uncertainty in the failure of a business idea.

Check this video out by CNBC on India’s business helping in the growth of its Economy.

But, India is a nation with diversity and various culture. Diversity can be positive, when we see examples such as the Reliance Industries. But, it can also have a negative impact on business due to imitation of doing ease of business in young youths. Thus, in today’s time having good business requires deep understanding of diversity patterns in the respective regions.

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3 thoughts on “Diversity in population! A gift or a curse for business?

  1. Pingback: Why you should think twice before buying a car!? | The Antique Economist

  2. Another thing to consider. People of different background and upbringing look at the problems differently. Having a group of people who can look at a problem to solve at the different angle might be the key to take advantage of diversity.

    Having said that, a strong leader is required to manage this. Otherwise the group will splinter into many arguing heads.

    Liked by 1 person

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