Whether Pulling Rickshaws or Flying Airplanes, Employees Matter

Irfan Alam is one of many entrepreneurs in Washington for the Presidential Summit on Entrepreneurship, held April 26-27. Alam founded the SammaaN Foundation to modernize the rickshaw-pulling sector in Bihar. He manages 100,000 rickshaw operators and has implemented innovations such as advertising, first aid,and offering passengers newspapers and water.

Joe Harris is senior labor counsel for Southwest Airlines in Dallas, Texas. In 2009, Southwest was ranked 7th in FORTUNE magazine’s ranking of the 50 Most Admired Companies in the World and 1st in a ranking of the 50 best U.S. places to work by Glassdoor.com, a website that gathers its information from employees.

Irfan Alam

Irfan Alam

Irfan Alam:
SammaaN Foundation gives a new face to the unorganized workers who form nearly 93 percent of the workforce in India. One part of the group is made up of the 10 million cycle rickshaws and push cart operators. They are mostly laborers from Bihar, UP and West Bengal who migrate to bigger cities such as Delhi, Patna, Lucknow during the off-peak agricultural season. Typically, rickshaw pullers fall between 14 years old and 60 years old. While I consider them exploited, many make a lucrative living, despite a lack of skills.

I see exploitation because a puller has to pay a significant sum to hire a rickshaw from a contractor and then looks after maintenance himself. If the rickshaw gets stolen, he has to pay for it or work as a bonded laborer until the value is recovered. After a hard day’s work, operators have no place to rest; many spend their nights in the open, where they are easy victims of criminals. Being uneducated, they often become alcohol or drug addicts, making it impossible for them to break the poverty cycle.

At SammaaN, we give them dignity by encouraging rickshaw pulling as a trade/ job and not as desperate substitute work. We register them so they receive all the benefits mandated by law. They receive cycle rickshaws, uniforms and identity cards. We created lighter models of cycle rickshaws that are much easier and have operator-friendly features. Moreover, there is insurance coverage for the pullers as well as those traveling on these rickshaws.

We have incorporated the SammaaN Sabha (gathering) to increase awareness among our operators about social issues as well as to create belongingness. Held every Sunday at our rickshaw yards, it allows discussion about issues such as alcoholism or drug abuse.

We introduced microloans and are starting initiatives for family members — education programs for children and training for wives. We are also planning low cost homes for our operators.

SammaaN earns its revenue mainly through advertisements placed on the rickshaws.

Joe Harris

Joe Harris

Joe Harris:
In the airline business, and I would assume in the rickshaw business, frontline employees are out there on their own every day, taking care of customers and making a myriad of decisions that affect the operation of the business and the customer experience.

It is refreshing to learn of an enterprise that seeks to improve the economic and social well-being of the people whose labor is essential to the success of its business. Indeed, some of the activities undertaken by SammaaN are those typically reserved to philanthropic, religious or civic organizations.

But the business of a business is to make a profit, right? Is it possible then for a business to be profitable and also be so committed to the well-being of its employees?

In a customer-service business, it is not only possible, it is advantageous. There is a direct correlation between the return rate of customers and the type of service provided by a customer-service employee. The theory is simple. If employees are happy and motivated, they will treat customers well. If customers are treated well, they will return. If customers are treated badly, they will be inclined to take their business elsewhere. This is true whether they are flying in an airplane across the USA or being pedaled through 5 blocks of Delhi.

Employees should take pride in their jobs. They should be “engaged.”

Frontline employees who feel good about themselves and their jobs feel empowered to make right decisions and act in ways beneficial to customers and to the success of the business. By promoting the dignity of the vocation and by seeking to improve the economic and social well-being of these individuals, SammaaN is not only performing a laudable public service, it is also building a foundation for a profitable business.

Fleet Management for Transportation Efficiency, Safety in Ethiopia

[guest name="Zelalem Dagne" biography="Zelalem Dagne has lived in the United States for 29 years. He has worked as a senior process engineer for advanced manufacturing systems in the plastic industry and provided consulting services to corporations including Comsat and Qualcomm on the deployment of mobile and wireless technologies."]

The African Diaspora Marketplace contest recently awarded $50,000 to $100,000 to 14 immigrants to the United States from African countries to help them start or expand businesses in Africa. Some of them share how they plan to use the money on the New Enterprise blog.

With the newly developed highway infrastructure and high accident rates, road transportation is a major challenge in Ethiopia. I believe our company – Global Telecommunications PLC – can help improve the efficiency and safety of road transportation by deploying a fleet management system based on the global positioning system (GPS) and related technologies.

The fleet management system implementation will have a positive impact on business and commerce by helping to move agricultural and industrial products to the intended destinations on more reliable schedules and at lower costs. Our two-year old firm will help freight companies manage their operations, and this, in turn, will help their clients improve management of their supply chains. The monitoring and tracking of the fleets across the country will allow their owners and operators to monitor fuel expenses and other costs, more accurately plan fleets’ operations, maximize the use of those fleets while keeping the vehicles safe and reliable, and extend the life of the vehicles.

When we began, we saw inadequate telecom infrastructure as a main obstacle. But the speed at which the country is catching up in this regard has surprised us. In the last six months, a third generation wireless system, which covers 85 percent of the country, was rolled out. To provide 100-percent coverage within Ethiopia as well as globally, we partnered with a Canadian satellite company to get a backup for our operations where the network of the terrestrial general packet radio service (GPRS), a mobile data service, is unavailable.

Initially, after a series of presentations, only few potential clients expressed any interest. But since we opened the office in Addis Ababa and started a pilot project with up to 30 vehicles the interest has grown significantly. My sister Elizabeth Dagne, who is my Ethiopian partner and has experience in the transportation sector, helped recruit potential clients too.

We also see potential markets in the tourism, rental car, and the oil and mineral exploration sectors. For example, a personal tracker service can help rental car companies establish the location of the victims of car crashes and alert emergency services. We are launching the promotion of the personal tracker in late March with free trials.

As a result of our win in the African Diaspora Marketplace competition, we have received inquiries from other contestants about possible partnerships in the countries they start their ventures. Given that our system was developed to work globally, the potential of such ventures is huge. Our plan is to use grant money to finance the launch of new services and buy additional equipment.