Small and Medium Businesses: The Real Heroes of the Economy
Even helping them open an Instagram page or showing them how to accept online payments can improve their business.
By Imrana
As a student who is deeply interested in the world around me, I often think about how the economy works and how people earn a living. One area that I believe doesn’t get enough attention is small and medium businesses, also called SMBs.
In this article, I want to share my thoughts on why SMBs are so important, what challenges they are facing, and how they can become stronger with the right support.
What Are SMBs and Why Do They Matter?
Small and medium businesses are companies that are not too big, but not too small either. They include established shops, factories, service providers, startups, and many other kinds of businesses. In India, a small business can be a local grocery shop or a family-run tailoring unit. A medium business could be a growing company that makes electric parts or sells clothes online.
These businesses may not be as big as famous companies like Tata or Infosys, but they are very important. In fact, according to India’s Ministry of Micro, Small and Medium Enterprises (MSME), these businesses provide jobs to over 110 million people and contribute almost 30% to the country’s GDP.
How SMBs Help Society
SMBs are more than just businesses. They help communities grow. Here are some ways they help:
They create jobs. Many people, especially in villages and small towns, find jobs in SMBs.
They support families. When one person in a family earns through an SMB, it helps the whole family live better.
They build local economies. Local shops and services help money stay within the community.
They protect culture. Many traditional crafts, handlooms, and foods are made by small businesses.
The Challenges SMBs Face in 2025
Even though SMBs are important, they face many problems in today’s world. Some of the biggest challenges include:
Lack of money: Many small business owners can’t get loans from banks easily. Without money, they can’t grow their business.
Technology problems: While many people are shopping online, not all small businesses know how to use the internet to sell.
Competition from big companies: Large companies can sell goods cheaper, making it hard for SMBs to survive.
Government rules: Sometimes there are too many rules and documents required, which makes it hard to start or run a small business.
Skilled workers: Some businesses can’t find workers who are trained or ready to work with new machines or software.
How Technology Can Help SMBs
Technology is one of the biggest tools that can help small businesses grow. Today, a small shopkeeper can sell things online using apps like WhatsApp, Instagram, or Amazon. Digital payments through UPI have made it easier to accept money. But not everyone knows how to use these tools. So, training and support are very important.
There are also online tools for keeping accounts, talking to customers, and managing stock. These tools can help small businesses save time and reduce mistakes.
What Governments and Companies Should Do
If we want SMBs to grow, the government and big companies must help them. Here are a few things they can do:
Make loans easier to get: Banks should trust small businesses more and offer them simple loan plans.
Give training: Free or low-cost classes should be available to teach small business owners how to use technology.
Build better roads and internet: Good roads and fast internet help businesses deliver goods and talk to customers.
Support women and young people: Special help should be given to women and young entrepreneurs who want to start their own businesses.
Promote local buying: People should be encouraged to buy from local sellers and not just from big online companies.
What We Can Do As Citizens
Even if we are not business owners, we can still support SMBs. Here’s how:
Buy from local shops and sellers.
Share small businesses on social media.
Respect and encourage people who are trying to build something on their own.
Avoid bargaining too much with small sellers. They need profits to survive.
Why the Future of SMBs Matters for Everyone
When we help small and medium businesses grow, we are not just helping business owners — we are helping the whole country. These businesses create opportunities, reduce poverty, and bring development to areas that are often ignored. If more people have jobs, families become stronger, children can go to school, and local areas can become more developed.
Also, when young people see that they can start their own businesses, they begin to dream bigger. Instead of waiting for a job, they can create jobs for others. This kind of thinking can bring a big change in the mindset of the country.
The Power of Youth in Supporting SMBs
We, the younger generation, can play a big role in supporting small businesses. Many of us are already active on the internet, know how to use apps, and understand how online marketing works. If we help small business owners in our neighbourhoods learn how to use these tools, we can make a big difference.
Even helping them open an Instagram page or showing them how to accept online payments can improve their business. We can also create blogs, videos, or even small websites to promote their work. These small actions can bring more customers and help them earn better.
Success Stories Give Hope
There are many examples of small businesses that started with very little and are now doing well. For example, a woman from a village who started making pickles at home is now selling them across the country through an online platform. A young boy who repaired phones in a small shop now owns a mobile accessories store. These stories show that with hard work, support, and the right tools, anything is possible.
These success stories also inspire others. They show that you don’t need to be rich or have a big office to start a business. You just need a good idea, a little help, and the courage to take the first step.
Sustainability and Local Businesses
Another great thing about SMBs is that many of them focus on local, handmade, and eco-friendly products. In today’s world, where climate change is a big concern, small businesses that use natural materials, create less waste, and support local farmers or workers are very important.
When we support such businesses, we are also supporting the health of our planet. Buying handwoven clothes, clay pots, organic vegetables, or handmade soaps helps the environment and supports the people who are trying to protect our culture and nature.
Digital India and SMBs
The government’s “Digital India” programme has helped many small businesses go online. With fast internet reaching more towns and villages, and digital tools becoming cheaper, more SMBs can now connect to customers across the country.
But still, many people need help in learning how to use these tools. Digital education should be part of every community training centre. Even school and college students can volunteer to teach basic digital skills to small business owners.
Challenges Still Remain
Even with all the growth and technology, SMBs still have many challenges. Some are:
Delayed payments: Many small businesses suffer because big companies or clients don’t pay them on time.
Poor legal support: If someone cheats a small business, it is hard for them to get justice quickly.
Lack of awareness: Many people still don’t know about government schemes made to help them.
Rising costs: Prices of raw materials, fuel, and rent are increasing, making it harder to manage costs.
These problems can slow down the progress of small businesses. That’s why it’s important for policies to not only sound good on paper but also work properly in real life.
My Final Thoughts
As a student and citizen, I believe that small and medium businesses are the backbone of any strong economy. They may not always be in the news or have big buildings, but they are full of hard work, dreams, and dedication. When we support them, we are supporting real people — people who are trying to build something of their own.
It is not just the job of the government to help them. We all must do our part. Whether it’s choosing to shop from a local store, teaching someone to use a mobile app, or simply spreading the word — every action matters.
In the end, I believe that with the right support, training, and respect, SMBs can grow even more powerful. They are not just small businesses. They are the real heroes of our economy.
This opinion piece has been written exclusively for the Pathway platform of RMN Company by Imrana, who is a student specializing in multiple domains such as business, education, technology, and politics. She also produces Imrana’s Insight podcast program on diverse topics.
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