Posted On: 2024-08-30 10:43:28
On August 30, we celebrate National Small Industry Day, a date that underscores the vital role small businesses play in our nation’s economic health. This observance traces back to the year 2000 when the Ministry of Small-Scale Industries (SSI) introduced a robust policy package designed to bolster small businesses and provide them with the support necessary to thrive.
Small businesses are often regarded as the backbone of our economy. They infuse local communities with vitality and innovation. Yet, despite their importance, small enterprises frequently find themselves overshadowed by multinational corporations. These large entities can outcompete local businesses, sometimes pushing them out of the market entirely.
One key distinction between multinational corporations and local businesses is how they impact the community. Multinational giants often channel their profits to shareholders rather than reinvesting in local economies. They also engage in aggressive tax avoidance strategies, which means their contributions to community development can be minimal. Furthermore, these corporations frequently import materials and products, rather than sourcing locally.
In contrast, local businesses keep money within the community. Profits generated by these enterprises are more likely to be reinvested locally, contributing to public projects and services. When you shop with local businesses, you also benefit from a more personalised customer experience, with direct interaction and attention from business owners. This level of engagement is often lacking in large corporations, where customer feedback can be easily overlooked.
Additionally, small businesses generally offer better working conditions compared to their corporate counterparts. With fewer financial resources at their disposal, local businesses are less likely to exploit their employees. In contrast, multinational corporations, with their vast financial resources, can sometimes leverage their power to evade legal accountability and exploit workers.
Small-scale businesses also play a crucial role in shaping the identity and character of a community. Take Goa, for instance—when visitors come to this vibrant destination, they typically seek out experiences that embody its local charm. Rather than spending their time in shopping malls, they flock to the beaches and savour fresh seafood at local restaurants.
This preference for local experiences helps to create a distinctive atmosphere that reflects Goa's unique culture and heritage. The small-scale businesses in such areas are not just commercial entities; they are integral to the community's identity, offering products and services that resonate with the local way of life. This authentic, localised experience enriches the visitor's journey and fosters a deeper connection with the place.
Filaantro along with its crowdfunding partner, Child Help Foundation supports local businesses. Together, we have transformed the village of Gulabi Gaon in Nashik, Maharashtra which has benefitted 2,167 people. Filaantro also raises money for establishing local businesses. You can reach out to us if you need support in establishing a business.
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AUTHOR: Adil Sayyad
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