Is the following statement true or false: The IT channel community has a majority of Marwari entrepreneurs? If you answered 'False', then you are sadly mistaken. Marwaris are the most dominant community in the IT channel, followed by Gujaratis.

For instance, almost 90% of the channel in Kolkata comprises Marwari business people. This community is strong in the western region and even down south in places like Chennai. In fact, there is a standing joke that when Neil Armstrong took the first step on the moon, he was greeted by the sight of a Marwari gentleman coordinating stock prices on earth.

First-generation entrepreneurs 
Most of the successful channel companies are headed by first-generation entrepreneurs. Take the instance of Samit Jain of SK Trading in Ludhiana, who got into this business at the age of 19. Or that of Sanjay Jain of Computer Network in Ranchi or Rakesh Jain of Supreme Computers in Chennai. Or Sanjay Jain of Jalan Distributors in Gorakhpur, whose father and brothers were earlier engaged in the foodgrain business. Or Sarad Bawri of Lifeline Enterprises in Shillong. The list is endless.

In some cases, these people were encouraged by their family to get into the IT business. Reminisces Rakesh Jain of Supreme Computers, "My father was in the textile business and it was not doing that great. So, he had asked me to identify a new business line, where we can invest and grow. Also, he wanted to give the new project completely to me, in which he was willing only to invest. I decided to get into IT."

In other cases, people got into the channel business envisioning it to be a great success. Arun Jalan of Jalan Infotech, Kolkata falls into this category. Though his family was into manufacturing rubber rings in Dubai, he diversified into IT, which he felt was the next big wave. And his business acumen was proved right.

Family values
Marwari communities lay a lot of onus on family and unity. Major business decisions are often taken after a family, especially elders, into consultation. Rakesh Jain had consulted with several of his relatives about the scope of the IT industry before getting into the business. Even today, he goes back to them whenever he wants s second opinion. "Whatever Supreme Computers is today, it is only because of the guidance from my father, and of course, support from my brother, Jitendra Jain. My father helped me to introduce many new systems and processes in business, through which we streamlined our operations and registered good growth," he points out.

Kapil Jain of Bhopal's Microworld is also indebted to his father who put him on the right path when he was wondering which business to get into. Even Sanjay Jain of Jalan Distributors recollects how his father's contacts in the community helped him start his business and get orders.

Nitesh Bhandari of Chennai's Texonic Instruments chose to join his dad's business because he would have the freedom to implement his ideas in his own fashion. "In a job, I would have to work for a fixed salary and under somebody else's instructions. Now, I am my own boss and also in a field as vibrant as IT," he says with pride.

Working in an environment where more than half your peers belong to your community can be very comfortable and profitable. To start with, you are related to a lot of your peers and therefore the chances of being gypped are minimal. Secondly, finance matters are often done through word of mouth, since there is an underlying belief that these promises will be kept.

This can also be a reason why Marwaris like to keep the business within their family. Rupesh Kedia of Jaipur's Computer Supermart feels that this can also work against the entrepreneurs. This is because they are more inclined towards their relatives, who might not deserve the position rather than trust an outsider who might be a good worker.

Why Marwaris are popular
What is it about Marwaris that makes them good business people? One reason could be that they are trained early on in life, on the basics of trading.

JP Modi of Delhi's Modi Peripherals feels that business is in the very DNA of a Marwari man. "Even if we don't go to any business school or university, we are most likely to excel in business in general. Certain business ethics and values are given to us on a daily basis right from childhood and it all becomes a part of our lives," he notes. Motilal Jain of Hubli's Balar Intertrade too agrees with him. "Our way of thinking, our business ethics and above all, financial support to do business, gives us an upper hand as a business community," he says.

Sarad Bawri of Lifeline Enterprises feels that since Marwaris traditionally come purely from a business background, they are well versed with its various aspects. That can make a difference. "We transact business worth crores based merely on word of mouth. So people trust the community as business people, especially as payments are made on time. Our forefathers gained this goodwill and this kind of inherited knowledge helps to a great extent," he adds.

Jatan Baid of Kolkata's Eastern Comnet agrees with him and points out that customers have faith in them as they feel that a Marwari businessman will not be dishonest.

Successful characteristics
Almost the entire Marwari community rate themselves as very honest folk. This is what makes them successful in their chosen business fields. Modi elucidates this point with an anecdote. One night, a customer came to Modi Peripherals with Rs 40,000 and his jacket carrying that sum in Modi's office. The latter immediately went out to look for him, but could not find him. A couple of days later, the same customer walked into the shop and mentioned about the loss casually to Modi, who promptly returned it to him.

Samit Jain of SK Trading feels that Marwari businessmen are very committed to their customers and seek long-term relationships. "We have been trading for several generations now and people continue their associations with us down the ages as well," he says. Samit also feels that Marwaris are also very aggressive when it comes to business, and don't let go of any prospective opportunity that comes their way.

Working hard is another aspect about Marwaris that helps in the long run. Arun Jalan of Jalan Infotech recollects that he used to help out in his family business even when he was in college. "After college, I would reach our office by 11 o'clock and work late into the night. And I was not given an elevated platform. Instead I was made to learn all the aspects of the business, from a peon's to managing the company," he smiles.

Sanjay Jain of Computer Network pegs Marwaris' success on their aptitude to feel the pulse of the market. "This quality leads them to venture into newer areas and open up new avenues for their business," he opines. This could also be the reason why Marwaris are so enterprising by nature.

Stronghold in the channel
There are many reasons that can be attributed to Marwaris dominating the channel community. One is that when they got into the IT business, they had the first mover advantage. Also, the margins prevalent then were very good, which enticed them.

Sarad Bawri offers another reason, pointing out that most of the entrepreneurs in this space got into this business around the same time, probably noticing each other's success. "The younger generation back then was searching for an emerging field. This is why you find so many Marwaris in IT trading."

Jatan Baid too agrees with him and points out that the current age group of the Marwari entrepreneurs in this business is in the 40s.

Another facet that worked in the favor of Marwaris is that their strong finance background permitted them to venture into newer business domains. And these people are good at understanding whom to sell, what to sell, when to sell and what the price should be.

While being a Marwari might equip a person with some inherent gyaan, a lot depends on the person's ability to succeed in his chosen field. Says Nitesh Bhandari of Texonic Instruments, "Merely being a Marwari does not help in business. It is driven by ethics and principles, and not by religion and caste. If you are good and fair in business, any one would like to have business relationship with you."

Rakesh Jain agrees with him and notes that caste or creed doesn't have much significance in business. It is credibility and customer service that matters most.

Common perceptions about Marwaris
The first perception that people have about Marwaris is that they are very stingy by nature. But the people from the community themselves deny this. Nitesh states that they are definitely very strict when it comes to finance in business matters as they believe that every penny saved is a penny earned. He says, "We will give only what is required and not unnecessarily support someone. Of course, we spend a lot on charity."

Sarad jokingly says how he always ends up paying up people's bills at gatherings, as it is immediately known that Marwaris are loaded with the green stuff. "Since we are known to be rich, people come straight to us for all kinds of donations and contributions," he laughs.

Jatan points out that most people from his community do a lot of charity. Even Suresh Pansari of Rashi Peripherals points out most of the big hospitals in several cities are run by trusts set up by Marwaris. Suresh has even started a school in his native village Ramgarh as well as a rehabilitation center for cows.

JP Modi was also instrumental in setting up a girls' school in Jhunjunu in 1994, which currently has 1,300 students on its rolls. "Additionally, we have contributed towards building roads, a temple and hostel in our village. This is the best way we can stay connected to our roots," he states.

At the same time, Marwaris like to flash their money and maintain their social status. Weddings are very ostentious occasions, often a platform to people to flaunt their financial prowess. All in all, this is one community that works hard and loves to truly live life, kingsize.

VINITA BHATIA in Mumbai with inputs from Piyali Guha in Kolkata, Subbalakshmi BM in Bangalore, S Gopi Krishna in Chennai, Zia Askari and Sandhya Malhotra in New Delhi.

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