Study on the effects of online business on small local businesses

This research paper investigates the effects of online business and e-commerce platforms on small local businesses in Bengaluru. The primary objective is to understand consumer perceptions regarding the impact of online shopping on local retail establishments and identify the factors influencing consumer purchasing preferences. A quantitative survey was conducted with 82 respondents across various age groups and occupational backgrounds in India. The findings reveal that 58.5% of consumers perceive a very high impact of online shopping on small local businesses, while 65.9% agree that small businesses have lost customers due to online platforms. The study identifies convenience and home delivery (29.3%) and wider product variety (36.6% when combined with other factors) as primary motivators for online shopping. These results indicate that while online shopping poses significant challenges to small local businesses, opportunities exist through digital adaptation and Omni channel strategies. The research concludes with recommendations for government support, technological integration, and strategic business repositioning to ensure the sustainability of small businesses in the digital economy.