The role of independent retailers in sustaining rural society: a study in rural India

Abstract

ABSTRACT Retailing is the largest non-farm occupation in rural India. Unorganised retailers provide support for rural socioeconomic life by disseminating information, ensuring availability of goods/services, providing credit to villagers, and allowing barter systems in India. These indicate the embeddedness of unorganised retailers in India’s rural societies. Store premises in villages are the hubs of social interactions, yet chain stores are not seen to enable such benefits for villages. Hypotheses about the importance of rural retailer independents are developed in light of existing literature. This article presents findings from a survey constructed to research independent retailers by collecting a stratified random sample of villagers in the state of West Bengal, India. Survey responses were subjected to an exploratory factor analysis (EFA) to determine latent constructs. Seven identified constructs were confirmed using confirmatory factor analysis (CFA). Structural equation modelling (SEM) helped determine the relationships of six antecedent factors with the resultant factor, namely, the need for preservation, and the sustainability of rural independents discussed.