With the Covid pandemic knocking at our gates of life in 2021, a new world was forming on our phones. While most lost everything they had due to the closure of the economy, the rich and privileged remained the same. E-commerce was one of the sectors of business that flourished during the lockdown. This article takes you through the journey of small businesses and their current status in India.
Small businesses are businesses not exceeding INR 10 lakh investment. Digitalization is a
major contributor to the rise of small businesses in India. The goal of India becoming a trillion-dollar economy is accelerated by the presence of these businesses.
After the implementation LPG policy in the 1990s, Multinationational corporations posed a threat to MSMEs in India. Funding was a major problem for small businesses. Loans were very difficult for individuals to get, due to the tedious formalities and lack of information. Big companies were acquiring a large share of finance. The cut-throat competition was another hurdle for small businesses.
Digitalization means providing services in electronic mode. It also aims to empower the country digitally in the domain of technology. Prime Minister NarendraModi launched the campaign on 1st July 2015. Small businesses that turned online benefited from the shift to technology. Some of the effects are mentioned below:
Business owners could use tools available on the internet to check the engagement of their posts, insights of customers, personalized feedback, etc. This helped in the overall evaluation of different products and services.
- Crossing borders
Some online shops extended their market to different countries. This accelerated their consumer base and increased their total revenue.
- Digital Marketing
Companies use social media platforms to promote their products. Digital marketing has turned out to be very cost-effective. It has increased consumer engagement on another level.
Apart from these benefits, digitalization has turned out to be a lottery ticket for small businesses. It has opened new opportunities for them and contributed towards their success.
During the pandemic, some businesses totally shifted online and benefited from it, some were not able to lack of funds. On a final note, small businesses account for 27% of India’s GDP; it has helped India’s economy exponentially and has paved a way for its growth. In spite of all the challenges faced by them, it is evident they have remained resilient and hardworking. With inflation looming over everyone, small businesses are still going strong.