Month: November 2023

In the evolving landscape of Indian entrepreneurship, the emergence of women as business leaders has been nothing short of transformative. Yet, the journey to the top is fraught with challenges for women. This is where the power of mentorship shines through, acting as a beacon for aspiring entrepreneurs. The importance of a supportive community and mentorship is felt across India’s entrepreneurial ecosystem. The “Women & Entrepreneurship In India” study underscores the belief among them in the country, it highlights the collective strength of female communities and mentors. These networks are not just support systems but catalysts for innovation, growth, and success.

Nirupama V.G., Founder & MD of Ad Astra Consultants adds “Mentorship among women is a cornerstone for cultivating leaders and innovators in India’s entrepreneurial space. At Ad Astra Consultants, one of India’s largest women-led businesses, we see firsthand the ripple effect of empowered women mentoring others. Such connections do more than a guide; they build a framework for collective success and progress. It’s essential we continue to nurture these relationships, crafting a future where female entrepreneurs are not just participating, but are central to shaping the business landscape.”

The recent WISER report highlights the resilience of women entrepreneurs in India. As of 2023, they are providing direct employment to 22 to 27 million people. However, their journey is often self-navigated, with more than 90% of companies run by women being self-financed. The lack of formal mentorship structure is evident, as a portion of these enterprises remains micro in scale. Yet, the demand for mentorship is palpable, with the report revealing that 62.7% of professionals prefer upskilling programs that offer access to a mentor.

Mentorship offers more than just business counsel—it’s about breaking down deep-seated social and gender barriers, many of which are rooted in societal norms. A study by Forbes India suggests that mentorship can generate transformational employment in India, to the tune of 150–170 million jobs by 2030. This is not just about creating jobs; it’s about changing the narrative for women in business.

The Indian government, recognising the pivotal role of mentorship, launched the Women Entrepreneurship Platform (WEP), aiming to build a vibrant ecosystem for young women entrepreneurs. Reports from WEP highlight the impact of mentorship on business growth for women. From facilitating networking to providing nuanced business insights, mentorship programs are instrumental in nurturing the next generation of women leaders.

Comparatively, India’s entrepreneurial ecosystem still has strides to make in fostering female entrepreneurship. With only 14% of Indian women owning or running businesses according to an IMF study, the country lags behind the global average. This disparity underscores the need for more robust mentorship and support structures.

Looking ahead, the trajectory of female entrepreneurship in India is poised for an upward trend. The inherent resilience and adaptability of Indian women, combined with growing institutional support, set the stage for a brighter future. As more women take the entrepreneurial leap, the ripple effects of their success will be felt across the economy and society at large.

The mentorship of women by women is not just about individual success stories; it’s about crafting a narrative of collective empowerment. It’s about building a legacy that transcends the individual, one where every success story becomes a stepping stone for the next aspiring entrepreneur in India.

When the tides of global conflict rise, the ripples are felt by economies and businesses worldwide. Even for nations not directly involved in the skirmish, the intertwined nature of today’s global economy means that the repercussions are widespread. The ongoing conflicts in places like Palestine and Ukraine have shown us that businesses, irrespective of their geography, need to be prepared for the domino effects of war.

Reconfigurations in Trade Patterns

The conflict in Ukraine is an example of how global trade can be affected. The heightened tensions have shaken commodity markets according to a UNCTAD report, causing spikes in prices for essential commodities such as oil, gas, and wheat. Further, as nations impose sanctions and boycotts against Russia, there’s a shift in trade directions. Russia is now veering more towards the East, as opposed to Europe.

Stock Market Volatility

Stock markets are inherently sensitive to global events, and conflicts are no exception. The Israel-Palestine unrest, historically, has caused turbulence in global stock exchanges. More recently, the Ukraine-Russia confrontation resulted in major stock indices like the Dow Jones and S&P 500 experiencing drops.

Supply Chain Disruptions

The complexities of global supply chains mean that disruptions in one region can impact industries worldwide. The Ukraine conflict has thrown a wrench in supply chains, affecting sectors from automobiles to semiconductors and even food.

Impact on Indian Businesses

While the direct impact of the Israel-Hamas conflict on Indian businesses might seem minimal, a widespread conflict in the Middle East could change this narrative. On the brighter side, Israeli firms have made investments of around $286 million in India over a span of several years, indicating strengthening business ties, and a prolonged war can strain these monetary benefits for India. 

However, an HBR report suggests that the Russia-Ukraine face-off poses more imminent challenges for India. With restrictions in foreign airspace and apprehensions in international trading, several Indian industries including textiles, plastics, steel, and pharma find themselves in choppy waters.

Learning from History

Wars have always wielded power over global markets. Historic events like the World Wars, the Cold War, and various regional conflicts have, time and again, caused stock market crashes and economic recessions. Businesses can glean insights into trends, impacts, and recovery strategies by studying these past events.

Strategies for Businesses

In times of conflict and global uncertainty, businesses need to be agile:

Diversify Supply Chains: Reducing dependency on one particular region can help mitigate risks.

Stay Informed: Keeping abreast of global events will allow businesses to anticipate and react swiftly to changes.

Financial Prudence: Ensuring a robust financial backup can be a lifesaver during such times.

Strengthen Local Ties: Focusing on local markets and suppliers can sometimes offer a shield against global disruptions.

The effects of war extend beyond borders, battlefields, and political arenas. In today’s world, businesses must be ready to navigate the challenges that arise from global conflicts. With foresight, strategic planning, and a keen understanding of events, businesses can weather the storm and find opportunities amidst the challenges.

The journey of India’s job landscape in the last few years has been a roller coaster, driven by domestic and international events. With the emergence of technology, the wave of digital transformation, and the unpredictable events of a global scale, companies have had to constantly adapt, leading to both growth and contractions in workforce numbers.

The Layoff Trend in the IT Sector

The tech industry hasn’t been spared from the effects of the shifting economy. Prominent companies have opted for workforce reductions, with over 4,000 to 5,000 employees being laid off recently. This isn’t a standalone case, as Accenture also reported the removal of approximately 19,000 employees from their roles. Startups, despite being backed by tech giants, aren’t immune either. To paint a clearer picture of the intensity, an average of 555 employees in various industries faced job loss every day over the past two years according to the latest data by layoff.fyi. 

The Larger Impact

Broadening the lens, other players in various sectors felt the strain as well. Microsoft, for instance, trimmed the workforce of its social media platform, LinkedIn, affecting around 668 employees. Another statistic shows that in 2022, nearly 11,833 employees in Indian startups across different sectors found themselves out of a job.

Support Systems and Government Initiatives

In light of these trends, the Indian government and private sectors have made efforts to provide a safety net for those affected. Temporary income support such as unemployment insurance and redundancy payments have been provided. The Industrial Disputes Act (IDA) has provisions permitting layoffs while ensuring a balance between employee and employer interests. Efforts are also being put to improve the Ease of Doing Business, with guidelines and strategies being issued by multiple governing bodies.

The Silver Lining

Not all is bleak, though. Many who found themselves out of work didn’t remain unemployed for long. Data by Forbes India suggests that 40% of those laid off typically find new employment within a month, and an encouraging 80% secure jobs within three to four months.

Global Influences and Challenges

It’s important to contextualise these events within the global environment. The pandemic introduced a range of challenges, impacting India’s economy and formal job market. Further, global economic challenges and the US Federal Reserve’s decisions have introduced more complexities, impacting sectors like IT. Additionally, the ongoing conflict between Russia-Ukraine & Israel-Palestine is causing ripples in the global market, affecting nations far and wide, including India.

Adapting to economic downturns and market shifts requires a multifaceted approach. While layoffs are an unfortunate side effect of these shifts, the combined efforts of the private sector, governmental initiatives, and the resilience of the Indian workforce are noteworthy. As the landscape continues to evolve, it’s crucial for professionals and companies alike to stay informed, agile, and ready to adapt.