Marwar was the independent state of Rajputana and it holds a high reputation in Business world of India. Marwari business men were actively commenced their business in various parts of the country. They earned a high reputation in business due to their business ethics. The Marwari businessmen were followed their given words, maintained high quality of products and always maintained their goodwill.
The social structure of the Marwar state also played a great role to create capable and honest business persons. There was no place for those who failed to retain their business reputation in Marwar. If any business man was failed to repay his debts than he had to face many social restrictions like he had to wear only white turban, his female members of family were not allowed to wear colorful dress, he could not serve sweets in their family festivals except in her daughter’s marriage, he could not go in marriage festivals etc, until he repaid his debts. These social restrictions bounded him to remain watchful about his duties to maintain business reputation.
In ancient time, there was no banking system and when business person needed some money than they arranged money from their relatives, friends and other business persons. They could achieve this loan only with his good reputation. Thus, reputation was the only key factor to achieve success in business. So, Marwari business men believed in simplicity in their life and tried to maintain their good business reputation at any cost.
They performed their duties successfully and Marwar earned a high business reputation throughout country. Many of Marwari business people started their business in various parts of country specially in Calcutta, Bengal, Mumbai, Madras etc.
The first world was the turning point in above scenario. In war time, Government wanted to purchase many items from local market because it was not possible to import all items from aboard due to war. Local business men were not capable to fulfill their demands with their sources. It was the time when Government officers and Business men came close and negotiated various issues. The new raised closeness of officers and business men opened new doors of mutual benefits for both parties.
Many business houses earned lot of money by supplying materials to Government. New rich business man purchased lot of land and created new properties in various areas of country. They were in position to negotiate with government and were in capacity to demand some privilege as Samants and Jamindar holded in princely times.
The business environment had been changed and old ethics were almost forgotten by successful persons and new generation had started following them. The new generation entered in market with inspiration of successful persons and they were aimed to achieve maximum of profits at any cost. At that time it was a common scene that officers were invited by business houses for lunch and rewarded with lot of money to acquire business facilities. Many of new rich people entered in the market to earn huge profit by speculation. The money inflow was high during war time and they earned a lot of money. This money created undue bad habits and pomp n show in society.
After world war all business activates went down and many of business people were unable to pay out their debts. It was the time of social and ethic degradation of business world in Marwar. Many of business houses declared them self insolvent. Finally Insolvency Act came to effect in 1929 to protect the family houses of this business person. Insolence was not remained like a curse in society.
Marwari system of business was depended upon the given words and these words were to be followed by all parties due to social restrictions and British system was followed by written contract and any of disobey was solved in the court. Due to new tendency people preferred court instead to solve matters in side society and this created a new opportunity for advocates. Advocates earned lot of money to fight in court. Due to enlargement of business, it was not possible to control all employees by the owner, munims, cashiers and other employees were also engaged in another activates to earn money.
Marwari business is still owned a good reputation but it was something special at twentieth century. We can learn lot of things from our ascendance. They were true follower of “honesty is the best policy”" and this still works.