Everything we do at EPIC World is to remove barriers in the way of upward mobility of Entrepreneurial Households. This segment is large, economically vibrant, and key to India’s growth over the next few decades. However, they remain misunderstood and underinvested-in. In this two-part series, we shed light on some of these myths and what reality is - based on our research and insights.
In the first part of this series, we looked at some of these myths. Here are some more.
Myth 4: They are unaware
‘Unaware’ has been a word associated with individuals from India’s smaller towns and cities. This is reductive, uncharitable, and in a hyper-connected, digital world, simply a myth. Entrepreneurial Households are not just connected but intelligent and aware - sometimes in ways that would take those living in cities by surprise.
They are savvy business operators and customers. They are discerning about their long-term spends and constantly optimize their asset base to enable their upward financial and social mobility. As per the EPIC Opportunity Report, in FY23, close to 303 million households in India had a mobile phone and about 137 million were engaging in online transactions. That is not what an 'unaware' audience looks like.
With the rapid transformation in India's digital infrastructure and increasing prevalence of technologies like UPI* and e-KYC** , the landscape is primed for Entrepreneurial Households to participate in mainstream economic activities like never before. These 247 million Entrepreneurial Households, together with their massive transaction volumes present an untapped market opportunity for entrepreneurs and investors.
Indeed, any who doubt this audience's awareness and savviness may explore our profiles of Entrepreneurial Households to witness their resilience and resourcefulness.
A great example is Yogesh from the outskirts of Belgavi. Despite already experiencing success with a versatile business, he plans to start a new one. He learnt of the government’s plan to ban single-use plastics, and sought out a manufacturer of a recyclable alternative. His dream is to start a factory producing this material in his village, which will provide employment to thousands.
* UPI: Unified Payments Interface, a Government of India-developed technology that enables quick QR-based payments, now ubiquitous across India.
** e-KYC: electronic Know-Your-Customer, a faster process to validate the authenticity of customers signing up for a service, normally financial in nature.
Myth 5: Lacking agency
A very common misconception we come across is that households in India’s smaller towns and cities lack agency. However, our experience shows that they are full of entrepreneurial spirit. They constantly balance multiple incomes and leverage their assets and carefully curated borrowings to grow and meet their aspirations. Many have an aspiration to contribute positively to their communities and leave behind a legacy.
This entrepreneurial spirit is evident in Amit’s story. After serving in the army, he was all set to receive a regular pension income; but he wanted to prosper and catalyze growth for his family and community. Having had to travel 12 km to the nearest gym, he identified a gap in the market, and opened his own fitness centre in the village, creating a successful business from scratch. He now has two sources of income.
Amit also saw the social pitfalls of the youth being unengaged. Wanting to make a positive change in their lives, he started training young people in his gym to keep them on the right track. He currently trains dozens of people in his gym. Amit’s journey highlights his vision, aspiration and risk-taking ability; all the marks of an entrepreneur. There are many more Entrepreneurial Households like Amit's, and therein lies the EPIC Opportunity for businesses and investors to meet their demands.
Myth 6: Stuck within their means
A common misconception to not invest in businesses building for Entrepreneurial Households is that they are constrained by their means, and therefore not worthy of investment.
The reality is quite the contrary. Entrepreneurial Households punch above their weight in every facet of their life. They are ambitious and aspirational, and do not let socio-economic obstacles prevent them from achieving financial and social mobility. Entrepreneurial Households are adept at leveraging every asset at their disposal in their pursuit of growth.
When Renu, who didn’t have enough capital to start her store, she secured a loan of ₹30,000 from her brother for initial inventory. She later turned to her savings and continued to invest in her business. Over time she established credit relationships with wholesalers and traders. Not having enough start-up capital of her own didn’t hamper Renu’s determination. This attitude exemplifies how Entrepreneurial Households dream well beyond their means and act to make them a reality. It also highlights the opportunity to lend to these households and help them scale their already successful businesses.
The EPIC Opportunity
We hope these two posts (part 1 here) shed a fresh light on this dynamic segment. As they reach for upward mobility, they will have demands both on the inflow and outflow side, which represents the significant opportunity to build for Entrepreneurial Households, unlocking their economic potential while driving commercial returns.
We term this the EPIC Opportunity, and the time to leverage it is now.
Read more about it here.