A blaze ripped through the Nicholson's newsagents in Langsett Road South, Oughtibridge, and is also thought to have caused smoke damage to the Jade Garden Chinese restaurant next door.
Nicholson's has served the village for at least three decades and the eaterie has also been there for a number of years - but both are currently closed following a blaze on the afternoon of Thursday, March 8.
Residents have now pledged to help both families who ran the businesses and have set up an online fundraising page.
The appeal has been flooded with more than 100 individual donations, raising around Â£2000 towards a target of Â£5000 in a matter of days.
Catherine Fletcher, who launched the page with her daughter Holly, said people in the village have been left 'devastated' over the fire.
The 48-year-old said: "Lewis and Doreen are well known in the village for running the shop for many, many years.
"And the family who lived above the restaurant next door are also well known.
"It is devastating, this is their livelihood.
"We just want to show them that the community has a lot of spirit and is supporting them at this difficult time.
"We hope the money will help them both to get back on their feet."
She added: "I drove past and saw the fire at about 12.45pm and it was well-alight. I think it went up on an hour or so.
"They're both closed at the moment and there are barriers up. I think the family who lived above the restaurant have also had to move out.
"It is shocking how quick things like this happen."
We have contacted South Yorkshire Fire and Rescue for details about the blaze and are awaiting a response.
Members of the public can donate to the fundraising page at https://www.justgiving.com/crowdfunding/catherine-fletcher?utm_id=108&utm_term=wG5x8aVZ6