With outbreak of COVID19, the supply and production chain of entire world got a big hit. In this global turmoil, it is evident that the enough stress and importance need to be given to localised business. These types of business units can help to overcome situations like this in future. Apart from this, it is well evident that economic activities and businesses are lifelines of any country. Without this country’s population is bound to suffer. Economic activity is indispensable for any country or society to survive. At any point, you would require, electricity, fuel, medicines, groceries, etc. These are by-products of business activity. We realised this, more, during the lockdown.
With the bite of deadly “Corona-Virus”, it is realised that global chain can get disrupted during any type of emergency or conflict. Hence, over-dependence on global community can pose a real risk. This type situations can come without any prior alert. So, there is no or little chance of preparedness. Then, what to be done? The solution to this is “Reverse Globalisation” i.e. “Localisation”. We must take a step backward and stress for localisation.
This process is comparatively easy and can be expedited with less effort. India is a vast country with dense and diverse population. This human resource needs to be properly explored.
I suggest few points which will help in this process:
- Stress and Improve locally made goods: India produce good amount of goods locally. But they are unable to cope with bigger companies due to their mass production and greater market reach. Due to this situation, the importance of locally produced good is well understood. At this point of time, one must go for supporting the local businesses. They must be guided. Proper help need to be extended to them so that local products improve, in lines of international standards.
- Provide end to end start-up support: Start-up support must be extended to local small businesses. Small local businesses have big potential. Right start-up support is required to take their products to next level. Startup support can be in form of finance, advice, networking etc. Also, it may be noted that most of the local businesses are unregistered. Business can be registered with this type help. A registered business gets an upper hand at many platforms. Registration also calls for increased compliances. Right guidance can help them in these matters. Startup support can be a big thing for local businesses.
- Provide financial support: Many a times we have seen, local business houses not going for expansion. One of the major factors behind this is, lack of financial support. Hence, business financing needs to be made available to common mass. This process must make a mark in rural economy. Indian rural economy has huge potential.
- Provide Tech support: This is another vital point. Most of the time local businesses move on traditional technologies. These technologies make the production process less efficient and with poorer qualities. Upgrading technology requires financial support. So, the previous point makes a sense here. Once the technology is upgraded, then efficiency increases leading to increased production. At the same time their product quality will also improve. This will help them to stand at par with international standards.
- Provide proper infrastructure: Any business requires a certain type of infrastructure to operate. We can see, a place with good infrastructure, is also good with business. Now, basic infrastructures need to be provided to all business units, so that they can produce and continue their business.
- Make the business process liberal: Business establishment processes need to be made bit liberal, so that local businesses can go on. We cannot expect a poor businessperson to go to a commercial place and do operation. The process – with certain businesses atleast – can be made liberalised, so that one-person can operate from their homes as well. But yes, this may not be possible for all types of business.
- Protect local businesses: Business units are employment givers and powerhouse of country’s economy. They drive the economy. With lockdown, importance of business unit is well evident. Their well-being, make, the well-being of economy. So, right protection of local businesses is the need of the hour. Our country and economy can bounce back only if, the smaller local business units are protected from all vulnerabilities. A protected business can explore its full potential.
- Connect local businesses to organised distribution network: One of the challenges that local businesses face is they cannot send their products out to a bigger market. This is a real challenge. If the local businesses get connected to an organised distribution network, then this problem is taken care of. This can be a boon for local businesses.
- Extend expansion opportunities with global framework: Local businesses have a huge potential for expansion. Right opportunity can be given to them so that they can take their business to global level.
- Educate local business: Local businesses are run on traditional lines. They are at times not very well versed with new developments. It is important to educate them on regular basis. This can be a long-term investment. This helps to make the local businesses leap to next level.
- Facilitate quality control: The quality controls measures should be informed to them. The quality, which is globally accepted, must informed to local business operators. You can never know, some of finest quality measures can come out from them. This can help them to improve the quality of their products.
- Facilitate them to export: Many times, we have seen local products comes quite good. But these cannot be taken out of country as export process is quite complicated. Here, a proper ease-out strategy is required. If this is done, India can become one of the leading export centre in the world.
Local business – especially in rural India- has huge potential. If local businesses are developed properly, India can emerge as an economic powerhouse of the world.