But despite their importance, small businesses often struggle to compete against large corporations. That’s why it’s important to support small businesses and shop locally whenever possible.
Here are four reasons to support small businesses and shop local:
1. Small businesses help boost the local economy
In 2020, small businesses employed 61.7 million Americans or 48% of the private workforce.
Small businesses are the backbone of the American economy. They create jobs, spur innovation, and help drive economic growth.
According to the Small Business Administration (SBA), small businesses account for 69.7% of all employer firms in the US. They also create about two out of every three new jobs in the country each year.
In addition, small businesses are responsible for more than half of the private sector’s output and have generated 64% of net new jobs since 1995.
The SBA also reports that small businesses make up 97.3% of all export-oriented firms and produce 30.2% of the country’s exports.
Furthermore, small businesses are often the driving force behind innovation. In fact, they are responsible for about 60% of all new patent applications.
2. They Boost local economies
Putting money back into the local economy is as simple as making a commitment to shop local or supporting local businesses. Many people in the United States, including yourself, probably prefer to shop at a huge chain store.
If you’re looking for anything specific, you’ll definitely want to check out these stores, and you might even feel obligated to do so. Nonetheless, there are a number of financial and social benefits to supporting local businesses.
Local government is sustained by sales taxes paid by local businesses. This is subsequently reinvested back into the neighborhood.
However, local governments frequently provide tax incentives to big box stores that aren’t available to small enterprises. Communities won’t gain from an out-of-town investment in a mega-chain retailer.
3. They Boost Job Growth
“The 2019 Small Business Profiles show that small firms added 1.8 million net new jobs in the United States over the most recent year reviewed,” states the Small Business Administration (SBA).
There are 30,7 million small firms in the United States, and together they account for 47.3% of the workers in the private sector. Our economy relies heavily on the success of its many small enterprises.
They help propel economic growth and the local economy by providing employment options locally to people who may not wish to be employed by large box stores, which is one of the ways in which they contribute to economic progress.
4. Small businesses offer unique products and services
One way small businesses can offer unique products and services is by customizing their offerings to meet the specific needs of their customers.
This could involve creating a new product or service that is not readily available from larger businesses or tailoring an existing product or service to better suit the needs of a particular customer base.
Additionally, small businesses can often provide a more personal level of service than their larger counterparts, which can be a significant selling point for many consumers.
5. Local companies contribute to the local community
It is common knowledge that small businesses play a big part in the financial support of local community charities and causes.
Because it is obvious that local businesses benefit from a healthy community, the owners of those businesses tend to be more actively involved in the community themselves.
Local nonprofit organizations and community causes receive donations from small businesses that are 250% more than those received from large enterprises. This helps to create a good cycle of giving back to the local community.
This covers local charitable organizations, youth organizations, local service groups, local first responder organizations, and more.
6. Better service can be expected from local businesses
In the eyes of a small business owner, every sale, discount, and glowing review counts.
Small business owners care about their customers and depend on them to keep their doors open.
Local establishments, as opposed to national chains, are more likely to employ employees who are experts in the products they offer or the operations they oversee.
As a result of the staff’s efforts to get to know their customers on a personal level, doing business here is a pleasure.
Moreover, you may rest assured that you won’t be discussing your problem with a machine.
While there are many reasons to support small businesses, these six are some of the most important.
Small businesses are vital to the American economy and contribute to economic growth, job creation, and innovation.
They also boost local economies and offer unique products and services. Finally, small businesses play a big role in supporting the local community.