MSMEs Need Funding, Infra, Skills To Thrive: Tajurba Co-Founder Suresh Mansharamani

Tajurba Business Network, Co-Founded by Suresh Mansharamani, has been a driving force in transforming the MSME sector through strategic frameworks like OKRs. In an exclusive interview with Bizz Buzz, Mansharamani highlights the key role of Objectives and Key Results (OKRs) in reshaping MSME operations. “OKRs emphasise planning before implementation to ensure efficiency and maximum quality of outcomes,” he says. Addressing the challenges MSMEs face, he points to funding issues, lack of infrastructure, and skill development as critical areas of concern. Mansharamani also advocates for community support and mentorship as essential tools for MSME growth

What are the biggest challenges MSMEs face today, and how can they overcome them?

Biggest challenge that MSMEs face is funding. They are often undercapitalised, with limited cash flow. Not having much knowledge around this, they often take several unsecured loans leading to poor financial management. Then, comes infrastructure. A lot of MSME owners are hesitant to invest in infrastructure- be it opening a factory for manufacturing of goods or a shop. Investing in infrastructure is crucial as it allows them to be where their customers will be. Those who start online are unable to invest in digital marketing and in expanding their presence on various platforms. Besides this, what contributes to their lack of knowledge is lack of skills. MSMEs do not invest in learning or mentorship.

MSME owners should spend time in learning as well as training their staff. Success is determined with hard work, practice and learning. Regulatory compliances are crucial for any business, it's not just about complying to rules to escape punishment. These compliances are there to ensure workplace safety and smooth functioning. Sometimes, non-compliance can lead to accidents that can eat up their business. Thus the solution lies in investing in skill development and proper infrastructure, including technology. MSMEs need to understand that compliances are often made to ensure their safety as well as product quality, which are essential for any business to thrive.

Moreover, they should expand their world and think big which will help them overcome several psychological limitations. Fund crunches can be resolved with knowledge of government schemes. In fact, the CGTMSE scheme which introduces Hybrid Security where MSMEs can obtain loan of up to 5 crores without collateral while for the remaining loan amount, the banks can obtain a collateral. There are several other such schemes to explore.

How has the role of OKRs evolved in Indian businesses, particularly in the MSME sector?

OKR - objectives and key results strategy is a strategy that giants like Google and Amazon have implemented when they were just starting out. This is in complete opposition to the myth that says OKR is not effective if you're not a big shot in the industry. However, OKR has changed the MSME landscape. OKR emphasises on planning before implementation to ensure efficiency and maximum quality of outcomes. It lays emphasis on quarterly planning or 90 days planning as opposed to having a year-end goal as the former allows for more flexibility and adaptability in an unpredictable world.

For instance, did anyone anticipate a lockdown or the Covid wave? Thus, in order to be prepared for external challenges, OKR becomes crucial. This helps in building a strong foundation. While MSMEs might have lesser objectives or goals, this is still elementary. OKR also helps give direction to everyone. It streamlines operations and adds sync between departments and people in the organisation. This alignment can achieve wonders. It is important to be ambitious in the whole process. However, this does not mean OKR must be implemented in all departments at the same time. MSMEs can streamline one department at a time. Moreover, traditionally while OKR softwares was used, they are not necessary. MSMEs can use any software to keep a track of the performance. OKR strategy also lays emphasis on fostering motivation and positive outlook even when the goals are not achieved. Thus, re-strategizing is part of the process of OKR.

What strategies do you recommend for MSMEs looking to scale rapidly in today's market?

The OKR strategy, which talks about having quarterly goals, is one of the best strategies. It is highly flexible and can bring all people in a team to work together in sync. Moreover, it leaves enough scope for strategizing in case goals are not met. Another strategy is the founders start to delegate. Delegation is important for automation.

If a founder is too involved in the petty decision making process, they are losing on opportunities to scale. Secondly, founders should focus on giving their employees goals which are ambitious but do not put pressure on them. At the same time, it is important to bring every leader together and let them own their goals. This way, they will be able to assign tasks to their department and its members. In the process remember, the goal is not to gauge the performance of an employee but keep them motivated enough to achieve their maximum potential for the company.

What key traits do you believe are essential for success in entrepreneurship today?

Clarity of mind and ambitious dreams are the elementary qualities of a successful entrepreneur in today’s world. A lot of people are creative and talented. But what limits them is their own mind and perceiving (non-existent) boundaries. A successful entrepreneur knows their potential and knows how to filter out one idea among the noise.

It is very simple. We are constantly thinking about new ideas to make life easier and more convenient. Every human is thus bombarded by ideas throughout the day. What differentiate an entrepreneur from others is their unique ability to plan a strategy and then implement it with discipline. At the same time, it is their self-belief that makes them confident enough to take the risk and aim high. They know how to get past the chains of hesitation.

Another factor that is essential for success in entrepreneurship is having no ego and believing in humans. As an entrepreneur, networking is the key to have a long term influence in the industry. However, arrogance and pride are only going to be roadblocks. Moreover to advance any business, entrepreneurs need to trust their employees and colleagues and delegate. This creates a productive and engaging work culture that is mutually beneficial for the entrepreneur and the workers.

How important is community support for the growth of MSMEs, and what role does Tajurba play in this?

MSMEs in India have a lot of zeal however, to take things to the next level they require mentorship and effective human resource management. The role of community support is crucial. I believe no one can understand the pain of an entrepreneur more than any other entrepreneur. Thus, Tajurba aims to bring all these entrepreneurs from various fields together to build a community that is always ready to guide members through their unique experiences and knowledge systems. As the name suggests, it focuses on connecting with people who have “tajurba” and are willing to share it. Since we at Tajurba understand that being an entrepreneur can be difficult, we act as a helpful network that offers advice and suggestions to entrepreneurs as they work towards their objectives.

Tajurba is a devoted platform for business education that aims to give its users lots of chances for personal and professional development via thorough business training. Giving entrepreneurs the information and abilities they need to succeed in the cutthroat business world of today is our main objective. Through live, in-person workshops, online courses, recorded courses, and ongoing, comprehensive training sessions, we give our members the tools they need to grow their businesses.

What common mistakes do you see entrepreneurs making, and how can they avoid them?

MSMEs often jump into business without thinking about big business processes and team development. While an entrepreneur or MSME owner might have all the skills and they might think that they can take on all responsibilities, it will be hard for them to do it all once the business starts to grow. At the end, they are left with little time to invest in thinking about growing efficiency and automation. Thus, it's important to adopt technology, train staff and distribute responsibilities to bring productivity and growth.

Another rookie mistake in the business world is to disregard someone's creativity because of their position within the organisation. Never treat others with contempt. Creativity knows no bounds, and anyone can provide you with helpful insights and suggestions. For this reason, you should always be receptive to criticism and recommendations, regardless of who offers them. And one the most dreadful mistakes is taking loans from the informal money lenders. It is important to have safer channels of procuring funds.

In your opinion, what is the future of business education for MSMEs in India?

The future of MSMEs seems bright as many are embracing the digital transformation. This will help them get rid of the challenge associated with inefficiency. The government is also keen on supporting them through various schemes for funding, showing the huge potential this sector has. This can in turn help India tackle the growing unemployment and poverty.