How much research is important for Small Scale business ?

Depends on the target market you intend to sell and how have you dreamt your business would look like. If it is a predominantely a trading market you are one of the many hawkers who try to sell their ware. In the event you have a long term goal or have a perfected painted of your business how it would look like or how the people with whom you will interact should percieve your busines you have to do a research in the market you want to enter.  A mismatch will be disastrous.