'Many consider standing on street...': Finfluencer on why small businesses thrive but educated Indians avoid them

Days after a pani puri vendor in Tamil Nadu received a GST notice for earning over Rs 40 lakh, financial influencer Akshat Shrivastava on Monday said that small business owners make more profits than most startup owners and most job doers in India. He, however, said that educated people are not interested in doing such run-of the-mill and small businesses.

"Panipuri sellers, tea stall owners, etc., make good money in India. Recently, a panipuri seller earned Rs 40 lakh (in fact more) in Tamil Nadu. For context: he made more profits than most startup owners & most job doers in India," Shrivastava wrote, pointing out the financial potential of such trades.  

Shrivastava, known for his insights on finance, acknowledged that while such earnings might not be typical for all pani puri vendors, the example underscores the "massive power in doing small business in India."  

However, he delved into the societal stigma associated with these professions, suggesting that many educated individuals dismiss small businesses due to perceptions of status. "Now, comes the natural question — why are educated people NOT interested in doing such run-of-the-mill, small businesses?" he asked.  

Shrivastava attributed this reluctance to a cultural bias against street vendors. "Well, because many consider standing on the street and being called a 'panipuri wala' beneath them. No one 'aspires' to become a panipuri wala or chai-wala," he said.  

The finance expert, however, suggested that people have to pay taxes for being aspirational. "There is a cost we pay for being aspirational (plus GST & other taxes)," Shrivastava said. 

Dr Rahman, a social media user, agreed with Shrivastava. "Absolutely right brother. In every town, there are famous Momo wala, Pakoda wala, Panipuri wala. I know a Pakoda seller who gets huge customers. Must be making 2k a day in the evening itself," he said. 

Shiva, another user, said that the country has plenty of people doing small business. "Btech chaiwala...MBA pani puri wala...youth is waking up to this lucrative niche. I am confident we will become Vishwaguru in just 2 decades. Can reach there in a decade if Dolly Chaiwala gets invited to Oscars or some other high-profile event," he wrote sarcastically. 

Recently, a pani puri seller in Tamil Nadu reportedly got a GST notice for receiving Rs 40 lakh payments online. The notice sparked widespread discussion, particularly on Reddit. Dated December 17, 2024, the summons was issued under Section 70 of the Tamil Nadu Goods and Service Tax Act and the Central GST Act, instructing the vendor to appear in person and provide the required documents.

"Based on the reports received from RazorPay and Phonepe, you have received UPI payments for outward supply of goods/services, and the payments received for the years 2021-22, 2022-23 and 2023-24 are below," reads the summons, showing Rs 40 lakh received in 2023-24.

The notice also pointed out that supplying goods or services without obtaining GST registration, after surpassing the threshold limit, is considered an offence.