"Brand building, advertising and financial support when given to small entrepreneurs will strengthen the foundation of Indian economy," he said while launching the Pradhan Mantri MUDRA Yojana here.
Giving an example, Modi said that a mango grower can value added his product at local level by making pickle and can also do wonders by packaging it well.
"If he sells mango, he gets a little money. If he makes pickles, he makes more money. And if that pickle is packed in a nice bottle, he gets much more. If he puts the bottle in the hands of a girl for advertisement, he will get still more money," he said.
"...With a little help, have the potential to grow (increases) manifold," he said, adding the biggest asset of the poor is integrity which can be combined with MUDRA initiative to achieve success.
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While large business houses provide employment to only 1.25 crore persons, the 5.75 crore small entrepreneurs employ as many as 12 crore persons, he said.
The small enterprises with an average loan size of Rs 17,000 use only Rs 11 lakh crore funds, he said, adding "helping them would push the country's GDP... We need to increase employment opportunities in the nation."
The MUDRA Bank, the legal structure of which will be put in place within a year, will provide loans ranging from Rs 50,000 to Rs 10 lakh to small businesses.