Answer: In today’s world we see a few large corporations slowly and stealthily expanding their monopoly in their domain. May it be software giants like Google and Facebook, or e-commerce giants like Amazon, or the likes of telecom stalwarts such as Reliance Jio in India. Somehow, it appears, these juggernauts keep on rolling, while consuming once ambitious small-time businesses whose presence not only gives consumers a diverse market to choose from, but also gives economies many more possibilities of innovation. This is why I feel governments have some, if not a major, role to play in helping small businesses thrive.

How many times in the recent years have we small business owners shut down their shop as soon as Walmart decided to set foot in the neighbourhood. If consumers are encouraged to patronize goods services provided locally, this problem may be prevented to some extent. For example, to sell the same bag of wheat that costs Rs. 500 at a big brand’s store, even if the government pays Rs. 20 for the consumer (for a stipulate period of course) when the purchase at a newly opened store, or at a store with a limited revenue, it would be beneficial for both parties. This model is adaptable to most, if not all, domains and would ensure a robust and thriving economy.

Another reason why I believe governments should set aside a fraction of the budget to small businesses is to keep them afloat during rainy days as well. COVID-19 left many small-time entrepreneurs fighting to keep their businesses running. Not only does this affect the owners, but it also creates immense uncertainty and difficulties for the workforce that depends on such businesses for their livelihood. Such a policy would provide freedom to small business owners to explore and adapt with an enhanced sense of security.

One of the major concerns that arise from such an approach is the opposition it would receive from stakeholders in large corporations. Having small businesses thrive, that too by using taxpayer money, would reduce the incentive for big businesses to work with the government for public interest. The effect might even extend to large businesses impeding progress by exercising their influence.

Hence, it is imperative to strike the right balance between supporting small businesses and making sure that the larger shareholders in the nation’s economy aren’t disaffected. This would require a deep study of how small businesses have grown in the past, what the most important factors influencing their growth are, and how much assistance is enough for whom.