Why are small businesses important? This is what you need to know

Small Business

Are you wondering why small businesses are important? If yes, you should click here to learn more about how they benefit the community.

Do you favor shopping small and supporting your local community?

Today, over 67% of Americans prefer to support local businesses over big-box retailers. Not only do these independent retailers carry local and unique goods, but they also create a sense of charm within the local community.

Of course, it always feels inherently good to support independent businesses. But, as it turns out, there are countless additional benefits to a community when consumers choose to shop locally.

So, how and why are small businesses important to the local community? Read on to discover the seven ways that small businesses have proven to benefit the local community at large.

Adds Charm and Character to the Community

It’s safe to say that small businesses help to add a sense of charm and unique character to their communities.

Can you imagine your main shopping street exclusively comprised of large, big-box retailers? In imagining such a thought, it’s simple to foresee the charm and individuality that would be so desperately missing.

With small businesses, there’s no denying the joy and charm they bring to their streets and communities. This helps to create an illuminating and visually appealing community.

Creates Local Jobs

Having a community comprised of small businesses is a great way to stimulate the local economy.

Of course, small businesses help to maintain the local cash-flow of a community. They also help to stimulate job growth and provide employment opportunities to residents. This could be anyone from teenagers and recent graduates to full-time adults and even part-time senior employees.

When an employee works locally, they’re all the more likely to chose to live locally. When that same person lives locally, they’re more likely to support the community in a number of ways.

Helps Foster a Community Identity

In today’s world, it’s the small businesses that help to foster and grow the identity of a community.

Whether it’s a family-owned Lebanese restaurant or an eco-friendly retailer, these businesses help stimulate a community image. This image helps to lend character to the community and has the potential to bring outsiders in.

This is a simple means of putting communities on the map and attracting visitors. When a community is known for a certain charm or personality, visitors are all the more likely to visit and support these communities.

Minimizes a Community’s Carbon Footprint

Are you looking to reduce your carbon footprint and help nourish the planet?

It’s safe to say that small businesses are often more kind to the environment than big-box retailers. Not only do small businesses tend to occupy less space, but they also employ significantly less energy and resources.

Big-box stores are also more likely to practice large-scale shipping for their products. This often requires both frequent and sizable product orders from across the globe.

On the other hand, small businesses place smaller and more infrequent orders for their products. They’re also all the more likely to order products from local and independent retailers in their community.

It’s also important to note that small businesses are often located in clusters. This allows the area to be significantly more walkable and less prone to vehicles and high emissions.

Keeps Money in the Local Economy

Short and simple, local businesses tend to favor other local businesses.

When you operate a small business, you know firsthand just how important it is to support other small businesses. In fact, one study found that 48% of each purchase at a local business was recirculated locally.

This is where the notion of “The Multiplier Effect” comes into play. This idea is centered upon the belief that money spent within the community will then circulate throughout the community.

In a way, this creates a cycle of money continually being spent throughout the local community. This helps to increase the economic health of the community and help to maintain a favorable local cash-flow.

Encourages Community Involvement

In what way does a big-box store get involved in your local community?

As compared to big-box stores, small businesses are all the more likely to get involved in their local communities. On top of choosing to support local themselves, these small businesses are often involved in activities such as:

  • Volunteer work
  • Charitable donations
  • Community events
  • Local festivals
  • Community sponsorships

Remember, small business owners typically live in the community in which they work. With this often comes a greater desire to help the community and encourage it to grow and develop to the best of its ability.

Fosters Entrepreneurship

When a community showcases success in its small business sector, this encourages a pattern.

Let’s point to the example of a young and impressionable student. When this student bears witness to the success of local entrepreneurs, they’re more likely to consider their own entrepreneurship. This is a great way to encourage the cycle of both starting and supporting small businesses within one’s community.

Some communities will even offer local entrepreneurs favorable loans or grants. This is a simple way to create a community that is favorable to small businesses.

Why Are Small Businesses Important?

Why are small businesses important to the community, you ask?

In small towns and even urban metropolises, the main streets are often comprised of small, independent businesses. This could be anything from bars and restaurants to artisan retailers and even service providers.

In spending your money locally, you can rest assured that you’re helping to support your local community. But, the advantages of supporting small businesses go way beyond mere financial support.

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