Non-corporate Small Business: The economic backbone of India
The Small Business sector plays a critical role in the Indian economy. A catalyst for socio-economic transformation of the country, the sector is critical in meeting the national objectives of generating employment, reducing poverty, and discouraging rural-urban migration.
These enterprises help to build a thriving entrepreneurial eco-system, in addition to promoting the use of indigenous technologies.
It is important to note that in addition to helping catalyze the growth of the economy, Small Businesses feed large local and international value chains as well as local consumer markets as suppliers, manufacturers, contractors, distributors, retailers and service providers. They account for a large share of industrial units, and contribute significantly to employment in the country*.
Micro, Small and Medium Enterprise Finance in India. A Research Study on Needs, Gaps and Way Forward (November, 2012)*