In a field study in April 2022, Svatantra Microfin (Svatantra) found out that more than 7% of their customers run grocery stores and shops for fueling their livelihood. A small grocery store, commonly referred to as Kirana Shop, is a place of gathering for many in small towns and rural communities. These grocery stores have a close-knit relationship with their customers, leading to a personalized shopping experience for the local community.

These local grocery stores provide sustenance, while also fulfilling the role of an economic driver, community builder, employer, and a place of meeting.

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One such Svatantra customer is Bindhu Jeevan from Kerala. Bindhu has been running her small grocery store for many years. The business has supported her family even when her husband lost his job due to COVID-19 lockdown. In fact, savings earned from the store played a critical role in helping him open his wall painting business. Since, the grocery store has become an essential lifeline for their family. As they continue to navigate the uncertain times, Bindhu remained hopeful and committed to keeping the business going for the benefit of her family and the community. Read her story

Bindhu Jeevan in her grocery store

India is a land of diversity, and its economy is no exception. Amidst the sprawling metropolitan cities and the technologically advanced sectors, small grocery stores and shops continue to play a crucial role in shaping the country's economy. In 2022, the number of grocery retailers across India amounted to about 13 million.

Small Grocery Stores and Shops: Heartbeat of Rural Communities:

In India, small grocery stores and shops are not just economic entities; they are the heartbeat of rural communities. In many rural areas, these stores are often the only source of basic necessities for the locals, such as food, toiletries, and medicines. They serve as a hub for social interaction and provide a sense of belonging to the community. These shops are typically owned by local families who have lived in the area for generations, and they often offer personalized services to their customers. Additionally, these shops provide employment opportunities to the locals, especially women, who may not have other employment opportunities in the region. Thus, these stores play an integral role in the economic and social well-being of rural communities, acting as a vital link between the villagers and the larger economy.

Women's Role in Small Grocery Stores and Shops in India

Women play a significant role in small grocery stores and shops in India. Many of these shops are family-owned and operated, and women often manage the day-to-day operations, including purchasing, stocking, and customer service. These stores provide a unique opportunity for women to contribute to the household income while still being able to fulfill their domestic responsibilities. In rural areas, these shops serve as a vital source of income for women who may not have other employment opportunities.

Additionally, women's participation in these small businesses empowers them economically, giving them greater financial independence and control over their lives. Women's involvement in these shops not only benefits their families but also strengthens the entire community. By playing a significant role in these businesses, women are helping to drive the growth and development of the Indian economy.

Microfinance Institutions Supporting Women's Entrepreneurship

Microfinance institutions like Svatantra have played a critical role in helping rural communities, especially women, start or expand their small grocery stores. These institutions provide small loans, often with no collateral, to individuals who are unable to access credit from traditional banking systems. For women in rural areas, microfinance has been a game-changer, allowing them to start their own businesses and earn an income, which they can use to support their families and invest in their children's education. With access to microfinance, women are no longer dependent on their male family members for financial support, which gives them greater control over their lives. These loans not only help individuals but also strengthen the entire community. As these small businesses grow and expand, they create employment opportunities, which stimulate the local economy and contribute to the overall development of the region. Microfinance institutions have provided a pathway out of poverty for many rural communities in India, and they continue to play a vital role in supporting entrepreneurship and economic empowerment, especially for women.

The small grocery stores and shops in India are a testament to the resilience and determination of the people and their unwavering commitment to building a better future for themselves and their families.