Saturday, August 11, 2012

Engineer Intensive Businesses

Last month I was in India for my annual vacation.

The labour market in India, specially in Kerala, is changing beyond all my expectation.

According to Engr. Balakrishnan, NEST Malappuram, the labour charge has doubled effectively in a span of one year! Wages are increased from, say, Rs. 500 to Rs. 700. At the same time the productivity of workers have reduced to,say, 60%! They come for work by 7.00am and are leaving by 1.00pm!

One of my neighbour started a stationary shop recently. He is finding it very difficult to get a sales man/girl!

On the contrary it is ironical that engineers are available in plenty for much cheaper rates. A fresh engineer is available  for a salary of 5,000 to 8,000 per month!

Don't ever try to start a labour intensive business in Kerala. It is better to start some business where you can employ more number of engineers, instead!

Engineers have smart minds, but cheaply available. Normal labourers are hard headed, non productive and non-manageable.

So be smart to devise "engineer intensive business models" and be a successfull entrepreneur.