Many small, local shops are closing as they are unable to compete with large supermarkets in the area. How does this effect local communities? How can this situation be improved?
With the coming of globalisation and digitalisation, the world has changed the way it did business. Unlike the traditional ways, people have now moved towards the new way of shopping, which include, either online shopping or buying things from malls. This shift, from the local market to the super market, has left the local vendors disappointed.
Globalisation although opened the doors for bigger and better business, it has led to the death of the local business. The major impact was seen in the local garments factories. With the coming of bigger brands to the home, people have stopped buying things made from their own country, leaving local vendors broken. Secondly, the sudden change has had a sharp impact on poor businessmen. For example, a person having a small shop, who barely met his meets, with the arrival of big players, is left with only one choice and that is to leave the business.
The most effective solution to this problem, could be to pool the resources with other local business of your kind and be big enough. For instance, if there are seven local vegetable sellers, instead of competing separately, they can open one vegetable shop together. This way they can provide better services and higher gains. Secondly, government needs to pull up the socks and make sure every one gets their due benefits.
Overall, although gloablisation brought with its great benefits for customers, it has acted as the devil for the local businessmen and the only way they can survive is by uniting together to be better than the supermarkets.