Shopify merchants from India made the business of ₹30,100 crores in 2022, claims data released under the Shopify Entrepreneurship Index. This is 9.8 percent higher in comparison to the previous year. The data also found that Indian entrepreneurs contributed ₹13,900 crore to the national GDP. It is 9.6 percent more than the contribution in 2021.
The success of Indian merchants is a testament to technological advancement and digital transformation undergoing in the country. E-commerce platforms like Shopify allow local merchants to sell across the internet. Thanks to this, India secured 26th position in the Shopify Entrepreneurship Index, led by the United States.
Launched as the beta version on May 16, the Shopify Entrepreneurship Index is the first such index that provides data and insights on global entrepreneurship. The top findings released by the company say the United States ranks at the top of the index, followed by Lithuania and Romania. Delaware is the number one US State as per the global entrepreneurship index.
As India continues its journey towards digitalisation and economic expansion, its ranking on the Index is a testament to the country’s thriving digital landscape and the opportunity for forward-thinking entrepreneurs to build high-growth retail brands online.
Bharati Balakrishnan, Shopify director and country head – India and South-East Asia
What is Shopify Entrepreneurship Index?
The Shopify Entrepreneurship Index provides useful data on entrepreneurship from 40 countries worldwide and all states of the US. It claims to offer a “comprehensive dataset” on global entrepreneurship. It will not only measure the economic impact of Shopify merchants but also recommend the solutions for the fastest and greatest growth.
“Today’s launch is the beta version of this Index—we’re just getting started. In the future, we’ll add even more data aimed to inspire smart policies and give leaders the insights they need to harness the power of entrepreneurship. We’ll continue to update this Index quarterly,” Shopify said in a statement.
Flourishing E-commerce in India
Talking about India, the Canadian e-commerce giant sees an influx of entrepreneurs entering the online business. In 2022, the Indian merchants based on Shopify helped create 223,920 jobs. This contribution is hiked by 10 percent since 2021. The data estimates that the e-commerce market in India will grow from $71 billion in 2023 to $119 billion in 2027.
India’s ranking among the top 30 countries in the Shopify Entrepreneur Index is a huge achievement as it promises an overall development of the economy.
“This achievement underscores India’s flourishing e-commerce and retail ecosystem, driven by a vast population and diverse market, which attracts ambitious commerce entrepreneurs seeking new avenues of growth. As India continues its journey towards digitalisation and economic expansion, its ranking on the Index is a testament to the country’s thriving digital landscape and the opportunity for forward-thinking entrepreneurs to build high-growth retail brands online,” Bharati Balakrishnan, Shopify director and country head – India and South-East Asia said as quoted by indiaretailing.com.
United States in Shopify Entrepreneur Index
The Index leader US saw an exponential rise in jobs in the e-commerce sector, which also left a positive impact on GDP impact and helped increase business activity by 11 percent. Shopify credits this success to the rise of consumer spending, investments and exports.
The Shopify Entrepreneurship Index also revealed important facts related to the US states. The Mountain West performed the best on the Index as five of the top ten US states came from that region. The southern region also witnessed a surge in jobs with export growth exploding in South Dakota (by 336 percent), Montana (135.5 percent) and Nevada (109 percent). Talking about other states of the US, the Shopify Entrepreneurship Index called California, New York, Texas and Florida as the juggernauts for entrepreneurial success. As many as 134,024 direct jobs were created within California in the last year. The total number of jobs supported in that region was 235,237. The e-commerce in California contributed $26.6 billion to GDP, while global exports accounted for $2.5 billion in 2022.
The Shopify Entrepreneurship Index hinted at a strong rural presence of entrepreneurship. “The Index shows nearly one third of Shopify entrepreneurs are building their businesses outside major cities, taking advantage of lower costs of living and government incentives offered by some states,” the company states.
What do Indian Merchants Lack?
In India, Shopify has its focus set on cross-border commerce and export strategies. This is the only segment where Indian merchants need support from the Canadian giant. In 2022, merchants saw a decline of 1.5 percent in exports in comparison to the previous year. Currently, only 18 percent of Indian merchants use the cross-border e-commerce feature offered by Shopify.
In September 2022, the company launched Shopify Markets Pro and Shopify Translate & Adapt in a bid to capture the international selling market. Shopify Markets Pro helps local merchants expand their business globally. It covers more than 150 countries. Shopify Translate & Adapt, on the other hand, localizes the customer journey to boost international selling chances for merchants.
Both the tools are based on Shopify Markets, launched in 2021. These tools enable cross-border selling options for online merchants. The initiative has helped over 175,000 merchants sell their locally produced articles across the globe. Talking about the biggest e-commerce market — the United States, Shopify Markets claims to have helped an average merchant to sell products to over 14 other countries.
“Using Shopify markets has been a game changer for us. It has given us transparent, easy-to-digest data that helps inform how we are performing globally,” David Wiggins, Head of Ecommerce at Walk London, said.
“Utilizing this data has also allowed us to make more strategic marketing decisions, such as offering an improved shipping service, more localized payment methods or introduce new languages appropriate to specific markets. This all helps fuel our growth strategy,” Wiggins added.
Walk London is a UK-based footwear brand. Under the shipping page, it claims to deliver products in 33 countries, including one from the Middle East and the rest 32 from Europe.
About Shopify Entrepreneurship Index
Shopify partnered with Deloitte to calculate the GDP impact, jobs supported, business activity and exports rate. For the rankings of the countries and the US states, the Shopify Entrepreneurship Index compared the national values compiled by Shopify with public data released by the International Monetary Fund (IMF), the International Labour Organization (ILO), the Organization for Economic Cooperation and Development (OECD) and other government statistical agencies.
“We’ll update the Index each quarter with new data and analysis to offer a comprehensive and ever-evolving benchmark of global entrepreneurship,” Shopify said.
How it Helps?
According to Shopify President Harley Finkelstein, the Shopify Entrepreneurship Index will help reduce barriers in the path of entrepreneurship. “Entrepreneurs are the fuel that drives economies forward. They create jobs. They anchor communities. They make an impact that goes far beyond their own business,” Finkelstein said.
“Previously, there wasn’t enough public data showcasing the superpowers and impact of entrepreneurship—and that’s why we’re launching the Shopify Entrepreneurship Index. Our goal is to give decision makers the insights they need to reduce barriers and make entrepreneurship even more accessible to everyone,” he added.
Dr. Gary Dushnitsky, Associate Professor of Strategy and Entrepreneurship at London Business School, believes that the data compiled by the Shopify Entrepreneurship Index will not only help business people but also stakeholders, academics and policymakers.
“This new report will be a valuable resource for a wide range of stakeholders, including academics, policymakers, and business leaders who are seeking data on the rising phenomenon of digitally-enabled entrepreneurs,” Dushnitsky said.
“This initiative serves many benefits. The quarterly cadence of release is particularly important, as it reflects the dynamic nature of entrepreneurship. It will further allow for the tracking of trends over time, providing important insights into the state of entrepreneurs,” he added.
