The current COVID-19 scenario has led to a lot of uncertainty and ambiguity, even more so for small and growing businesses.  While we wait to see how the situation will play out a lot of entrepreneurs have had to go back to the drawing board to explore new ways to do business, anticipating a new normal ahead.

As part of the ongoing resources we offer our entrepreneurs, we were extremely delighted to host Mr. Nand Kishore Chaudhary, Founder of Jaipur Rugs, to share his experiences and insight. Given the current context, this session with NK Chaudhary was an inspiration and added a spark of positivity for our entrepreneurs.  It was a reminder of how the basic building blocks of your business, driven by purpose and strong values, can help you navigate through the toughest of times to create positive social impact at the community level.

NK Chaudhary founded his business with just two looms and nine artisans back in 1978. Despite some opposition from society on working with the ‘untouchable class,’ he pushed through with purpose and the belief that each and every member of society is entitled to a dignified living. Everyone, he believed, can become an artisan if they have the will and opportunity to learn the right skill sets.

NK’s  perspective on leadership has evolved over the years in line with expectations from his business. However, he consistently leads with purpose, clarity, and deeply rooted values of respect, compassion, empathy, and authenticity. What also comes through is his modesty, humbleness, and eagerness to share his experiences with everyone.

While Jaipur Rugs evolved into a global brand over decades, we do believe that there are key insights and learnings for entrepreneurs at all stages. We are pleased to share some key insights from the conversation.

Building relationships with the community

One of NK Chaudhary’s core reasons for working in the carpet weaving space was the opportunity to work with those whom the society tends to ignore and reject. He had a strong belief that one’s identity cannot be driven by caste, but should be driven by what they do. “Treat everyone like a family member”, says NK.  This core principle of equality and respect has been critical in building their network of around 40,000 artisans and a global brand.

Empathy and transparency, he says, are important at all levels within the organisation. Empathy to understand the needs and wants of people you work with. This is not only with regards to their tangible needs such as income for their survival, but their wants and aspirations beyond that. For this, it’s important for entrepreneurs to spend time with the people they work with, as this investment of time helps build deep rooted relationships in the long run.

Transparency is key in terms of how the organisation operates at various levels. For Jaipur Rugs, this has been demonstrated by activities such as showing the artisans how the carpets they weave are designed, created, and sold. This truly shows them the value of their work and instills a feeling of pride.

With these core principals, businesses can build deep rooted trust with the communities they work with. If this is in place, NK believes that you wouldn’t need to do anything different.

Dignity and inclusion

Artisans are dependent on their work to support their households. But at the end of the day, each member of society wants to feel included and to be treated with dignity and respect. This notion should be ingrained within organisations. At one level, this means ensuring fair wages, ethical working conditions, flexibility in the context of on-ground realities, and appreciation for their work.  On another level, it can also be about co-creating with the artisans and showcasing their work to the world.

“Each artisan is an artist and their creativity is the same as any other designer,” says NK Chaudhary. In Jaipur Rugs’ case, one artisan who did not even attend school travelled to Germany to receive an award for her design, among peer awardees from Fortune 500 companies.

NK also suggests building in the idea of profit-sharing wherever possible. This creates a sense of ownership and trust, especially in the long run.

On inclusion, he says that the artisans and communities at the ground level are like front-line workers. They are the heroes of the business. If you are making business decisions without representation of these front-line workers, you are creating a death bed for your company.

Enhancing capabilities at the grassroots

In his case study on Jaipur Rugs, management guru C.K. Prahalad mentioned that one of the most unique aspects of the business was that its global supply chain was connecting the poorest of the poor with the richest of the rich by enhancing capabilities at the grassroots.

For many enterprises, especially in sectors such as handicrafts and agriculture, concerns include migration away from art forms and agriculture, profitability and viability of the business, and low probability of the next generation taking up the same line of work.

To build a strong community and continuously expand your network, it’s important to invest in building skills and setting your employees and jobholders on a path of learning and professional growth. For instance, invest time and resources in structured training programs wherever possible. As your business grows, make sure your jobholders grow with the business.

Management and Leadership approach

To anyone on an entrepreneurial journey, NK Chaudhary points out that his management and leadership styles evolved over the years. In the early years, as he shifted from working in the villages to running a global brand, he invested time in reading books and learning to understand the needs of a growing business: accounting, finance, HR, branding, marketing, sales etc. Like most early-stage entrepreneurs, NK fell prey to micro-managing. Today, he tells entrepreneurs that it’s important to understand when to step back and let the team work with freedom and accountability.

He also points out that as a business grows, the entrepreneur needs to understand how their leadership style needs to change and invest time in building this as well. He thus encourages all entrepreneurs to constantly adapt and learn, to continue building skills and learning new things.

Mr. Chaudhary also warns entrepreneurs that failures are a part of an entrepreneurial journey. “You won’t be able to succeed,” he says, “if you’re not ready to fail.” At every step, however, it’s important to introspect and clearly identify learnings to ensure that you’re moving forward.

Building a global business, and brand

When it comes to building a global brand, Jaipur Rugs exemplifies the importance of finding  the right market for your products and identifying your customer needs, profiles, and preferences. Persistence and consistency are also key aspects to building a brand which have been exhibited by their motto: “on time delivery, zero defects, zero wastage.”

In building a brand, NK Chaudhary believes that authenticity is key, as is understanding what you are really selling. To take inspiration from Jaipur Rugs – “We don’t sell carpets; we sell the blessings of the family. We sell the story. We sell the experience.” Further, the stories they share clearly articulate their principles of dignity, respect, and fair wages for artisans.

Building your team

NK also reiterates the need for bringing the right people on board, especially at the early stages. This is not only in terms of finding the right skill sets and experience, but more importantly finding those who align with the purpose and values of the organisation.   Knowledge is power, he says, but without practice, it leads to ego.

NK was always driven by purpose, but that doesn’t necessarily translate across the organisation as the business grows. Over the last five years, Jaipur Rugs has been implementing the well-known “Founder’s mentality,” based on a research by Bain & Co..  The theory lays emphasis on defining and documenting the organisation’s vision, mission, purpose and values. If not documented, these will not get passed on, and over a period of time, the organisation will lose its authenticity and relevance.

Advice for entrepreneurs of today

Do what you love and trust yourself, Mr. Chaudhary tells entrepreneurs. Remember that your intuition will take you in the right direction. Identify natural abilities, and work on things where you can lose yourself in a positive way. In a world where everyone is in a hurry, just be yourself. Remember that you can either define yourself or be defined.

He also encourages entrepreneurs to be curious like a child. The biggest teacher is a deep understanding of what you do. Pause and reflect at every step, and at some point, this will convert to wisdom.

Upaya facilitates a shared learning platform for our network of entrepreneurs. Once in a while, we also invite guests, such as senior entrepreneurs, to engage with our network and share their experiences and learnings. 

Want to be part of Upaya’s entrepreneur network? Are you creating jobs for those in extreme poverty? Apply for Upaya investment or check out our Accelerator Program to learn more.