Capitalism at the Grass roots: A new business ecosystem emerging?
The “Emerging Market - ala India” story has been around for some time. But the truth is that it is not only restricted to India. Lot of amazing stories are being unfolded in Bolivia, Egypt and Cambodia alike. But may be… just may be..there is a little difference as to how the story of India is playing out. Possible reasons could be the open democratic environment, policies based on a wobbly framework that takes its turns appeasing mass population and corporate lobbies depending on the ‘opportunities’ present! Reforms, unfriendly to masses, often result in a peculiar sporadic form of defiant activism, which in turn bring about unprecedented optimism. Whatever be the cause or effect, there is something happening at the grass roots that merits attention and deserves a discourse.
After many entrepreneurial and academic stop-starts as ‘emerging market’ experiments, finally a definite direction is emerging that is effectively pulling masses out of the clutches of poverty, creating opportunities for viable business models and most notably creating unprecedented ambition and optimism among the rural communities!. Recent example is Farmers in western India deciding to put up a protest against corporate land grabbing and start a whole Special Economic Zone by themselves!! One really wonders what will be the determinants of commercial success of these especially when venturing into segments where these communities have no previous knowledge, e.g. manufacturing. But without a doubt, there will be new chapters written in the science of competitiveness.
To sketch out what is happening in the non-urban India, we may very well cite the unimaginable rise in the e-commerce transactions (about 60% in all of India) taking place from the small towns and large rural centers, farmers opting for smart card based insurance, dispensed from rural ATMs and community based trade co-operatives, going all out to woo the buyers in the developed market industries. Are we soon going to see the actual implementation of ‘Social stock exchange’ famously propounded by Mohammed Yunus of Grameen Bank? We don’t know at this moment, but these movements seem highly poised to capture the opportunity of the moment.
How will these communities become active members of mainstream commerce. What is their credential to stand against the sophisticated global business giants or even the local ones. What mental models and behavioral or attitudinal dispositions towards technology and ‘information objects’ do these communities manifest in general? Few key observations from the project work rural India, that I have been fortunate to be a part of:
- They exhibit a collective identity that gives them mutual strength and at the same time builds an effective social capital
- Their experiences are day-to-day learning based, not shaped through formal training
- Low on deciphering complex taxonomies but very high on grasping the functional aspect of the knowledge (quick to implement too)
- Cognition in general very distributed, based on physical artifacts and trusted entities (person or object)
- Non-literacy is a big barrier, they adopt many ways to circumvent the shortcomings, e.g. appointing the only school going village boy as the cooperative spokesperson!
- Tasks are carried out in a highly social manner, not from an individualistic point of view
See Publication: Understanding and designing for intermediated information tasks in India by Tapan Parikh, J.S.; Kaushik Ghosh

3 Comments so far ...
Thank you for your story.
We are setting up North America’s first social stock exchange connected to a green social network, called the Green Stock Exchange (GREENSX) at: http://greensx.com, which will be launched in the Summer of 2008 to begin trading. It will trade shares in social businesses. A social business is a business that makes a profit, but benefits society as well. We have a triple bottom line (economic + social + environmental).
Since all the listed companies on the exchange are pre-screened, evaluated, and audited according to social and sustainable guidelines set by the exchange, it will make it much easier for green investors to find and support social businesses. The GREENSX provides opportunities for small green Issuers to access public equity capital efficiently, while providing early stage investors, angel investors, and venture capitalists with greater liquidity.
This includes a eBAY.com trading system for carbon credits.
It is still in the beta stage testing. Check it out at: http://greensx.com.
Comment on April 7, 2008 12:16 amThat’s brilliant. Really happy to see something concrete in this space. Just one concern though.
Comment on April 7, 2008 09:11 amHow does this model ensure the right approach for unbiased equity, sustainability and empowerment. Without risking to sound like an activist, the ideal ’social stock exchange’ needs to be a dependable instrument that the target communities can be a part of. They are able to generate their own values out of this directly or indirectly. And not fall clueless into a complex game being played by the ’smart wallets’ of the world.
I recently came across some viable design models for sustainable eco-sensitive development by the Phillips Design. They discuss some interesting approaches like an ‘Open Product Service System’ rather than ‘Finished Products’ that attempts to put an end to the value generation chain by fixing a monetary price to it.
I would like to take up a more detailed discussion on this later. Many thanks for sharing your valuable insight.
this is a great blog, kaushik! very informative and relevant. I’m going to share it with people who want to know more in this field. cheers sunandini
Comment on September 17, 2008 03:33 pm