Small Businesses are the real backbone of the $2.3 Trillion Indian Economy. More than 60 million in number, these are essentially proprietorship/partnership firms. They contribute almost 45% of India’s GDP and 90% of the employment. Yet they get less than 4% of the finance they need from banks. This leaves them with no option but to borrow money at usurious rates from money lenders in order to run their businesses.

What is needed is an alternate financial architecture which would ensure free flow of affordable credit to this vibrant sector. FUNDING THE UNFUNDED was what the Nation needed for the larger good.

In order to bring their plight to the attention of the Government of India an Integrated Public Advocacy campaign was launched by Action Committee for Formal Finance for Non Corporate Small Businesses. The focus of the campaign was to highlight that SMALL BUSINESS IS BIG BUSINESS and SMALL BUSINESS FINANCE IS THE FUEL FOR A GROWTH ECONOMY.

This had to be done in a fully integrated manner to influence Government’s thinking and action in favour of an Alternate Financial Architecture for Small Businesses. All possible avenues of public advocacy had to be tapped.

Step by step implementation of the plan:

1. Disparate trade groups integrated under an action committee

2. Multilingual collateral & presentation material developed starting with a Website www.smallbusinessisbigbusiness.org.

3. Conferences of Media and trade bodies and rallies of small entrepreneurs held.

4. Presentations made to various ministries as well as the Prime Minister of India.

5. Leading TV channels encouraged to create content to highlight the issue

6. Press articles were carried nationally.

7. Created Infomercials for placement in leading news channels

8. Print ads in leading business and local dailies

Yes, the campaign ran according to the original plan.

The outcome of this Integrated effort has been most spectacular and probably a first in the annals of Public Advocacy.

The Government in its Annual Budget Presentation 2015, announced the creation of MUDRA which would act as the lead agency to ensure that over 60 million small businesses get the Credit they need. MUDRA will soon be institutionalised through a special act of parliament.