#ECommerceInnovation: How supporting small businesses helps the economy!


Small businesses are back bone of our country. They support the Indian economy and play a vital role in socio-economic development of country.  

As per reports, India has a second largest small businesses in the world (about 43 million). These small businesses are one the most powerful and dynamic factor that help in making India fastest growing economies of world.  

Our prime minister Narendra Modi strongly believes and advocate the power of small businesses in supporting Indian economy. In a letter addressed to small businesses in the country, Modi has called small businesses the “real back bone of country”. 

He has said, 

Vegetable sellers, milkmen, grocers, washermen, newspaper Wallas, weavers, artisans, flower-sellers and so on — you all are the backbone of our nation. 
While many think that large companies dominate, in reality, it is over 5.5 crore small units such as yours, which drive our economy through small manufacturing, trading and service businesses.” 

Indeed, small businesses are most important factor that support our economy and promote socio-economic development.  

How supporting small businesses help the economy? And what are some easy to support small businesses from our side? Read the post to know more! 

How supporting small businesses helps the economy? 


Here are some important reasons, how small businesses help the Indian economy and why should we support the small businesses to grow faster and better.  

Small businesses provide large number of employment opportunities to needed people 

First and most important reason, small businesses play a vital role in providing large number of employments opportunities for needed people. 

 As per CSIS (Center for strategic & International studies), small businesses employ the largest number of people after the agriculture sector and represent 95 percent of the industrial units and 45 percent of the industrial output of the nation”. 

Impressively, approximate 11 crore people employed in small businesses unit.  

Small businesses create a positive economic impact in multiple ways & contribute a major role in supporting Indian economy 

In our country, about 95 % of Industrial units are consist of small businesses. Small businesses play a major role in contributing India’s Gross domestic products (GDP). They contribute approximate 30% of India’s GDP and also responsible for country’s 40-50% of total exports. With these ways, small businesses create a positive impact on Indian economy and contribute amazingly in economic success.  

They help in improving rural and backward area economy 

Years ago, Mahatma Gandhi has said that “India is not Calcutta and Bombay; India lives in her seven hundred thousand villages.” 

Approximate 74% of Indian population lives in Villages and majority of them are poor and faced various struggles related to their overall growth and employment. They did not get enough employment opportunities in rural areas. this thing creates a state of migration of people from rural to urban areas, in search of employment and better living.  

Here, small businesses work as a major support. They not only provide ample employment opportunities but also support local arts, traditions (like Khadi and silk fabric, handmade items etc.) as well. With this way, small businesses help in eradicating poverty and promotes rural area growth and development.  

How can we support small businesses? 

Though small businesses are supporting our economy wonderfully but they had their own sets of struggles related to finance and limited resources. They need our support to grow and encouragement to overcome their challenges.  

Here are some easy ways to support small business.  

Shop locally (online and in person) 

This is one of the best and easy way to support local small businesses. There are varieties of local businesses that offer excellent services or products but they did not get enough customers and opportunities to serving the community. If you want to support a local business, give them a chance. Buy locally and look out for local options, when shop online too.  

Buy gift cards 

Gift cards are trending and nowadays many small business companies are offering option to purchase gift cards online. You can buy them for gifting options and can support small business in a smart way.  

Online support 

Nowadays, social media possess an amazing power and help a lot in spreading the information with a fast speed. You can post about your favorite local businesses on your social media platforms (of course by tagging them), and can help in promoting their business with this digital way. Additionally, you can share their social media posts on your platforms that will help them to reach out more people.  

Leave a positive review 

This one is another easy way to support small and local businesses. Leave a positive review or good comment on their website or on their social media pages help them grow.  

Support local community events (like art fair and farmer markets) 

As next option, you can support local community events like art and craft fair and farmer markets to support small businesses.  

Apart from buying stuffs, you can provide them support by sharing their information on social media and by inviting your friends to be a part of the event.  

Here is an info graphic that summarized all important ways to support small and local businesses.  

ways to support local business
Image source:

So, these are some easy way to support small businesses? What are your thoughts? Please share with me! 

Written as part of Blogchatter’s campaign #ECommerceInnovation. Read more posts in the campaign here

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  • Alpana Deo

    The points that you have shared about supporting small scale businesses are very thoughtful. People run behind brands but by supporting the local and small scale businesses, we are helping them in making their presence strong in the market.

  • Sandy N Vyjay

    In these times when big malls and corporate entities rule the roost, it is so neccessary to support and nurture the small businesses. They need all the support and encourgaement that one can provide.

  • Anjali

    Indeed small businesses play an important role in the national economy. However, they have an even greater impact within their communities. We are also helping the local community by supporting a small business. I too support them by buying local jewellery, purses or decorative items.

    • Priyal

      This is the need for time to support small businesses. Many people run towards branded apparel. I am trying my best to spread this among all. And I try to buy things from small business communities only. It

  • Jeannine

    Great initiative on spreading awareness on this topic. Understanding the economy and how much our simple daily purchase can affect our society really matters. This topics aren’t complex to understand but takes a village to spread the knowledge. May this be the talk of town and supporting local businesses be the next fad.

  • energeticreads

    This is amazing. Instead of running behind brands we can support our local products. India has rich culture and our support to these small businesses can help us grow our economy stronger and inclusive.

  • Rahul Prabhakar

    I have always supported small businesses by shopping locally, although I never fully tried to understand how else could I help to make these businesses flourish! Your post has given me a few more ideas, so thanks a lot!

  • Indiacafe24

    Local businesses are always the backbone for any society and any nation. Few realize it early and give boost such businesses for nations economic growth. Few realize it late. But better late than never

  • Ruchie

    I agree to each point of yours, these small businesses are not only helping in Indian economy but plays a vital role in providing job opportunities. Very well explained article..

  • Roma

    Such an inspiring article dear. I really liked your suggestions. These little support gestures from us shall really aid them flourish as well as motivate them

    • Humaira

      our support to these small businesses can help us grow our economy stronger. I support many small scale business and gives me happy feeling too ?

  • rakshanagaraj

    Love this article. Being a small business owner myself, I cannot stress how much these things help us. Just a small positive review is so helpful. Also, I have also started shopping locally so I can help other businesses.

  • Cindy D'Silva

    Awesome information. Very good pointers to help other businesses grow. I try to do my best if I think the business offers good services or products like re-posting their posts, or generally telling people about them.

  • Hansa Kajaria

    Small business is truly the back bone of the economy. From small shops n sellers to online sellers, they are growing by leaps and bounds and we can surely help them like you mentioned by going local and leaving a review for their good work.

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