Many people think small businesses are not as crucial to the community, but in reality, they are. In this article, I will discuss some benefits of small businesses in a community.
There are plenty of benefits to keeping the businesses in your community small. Many people are under the preconceived notion that only large companies are suitable for a community, but the truth is the other way around. When you have small businesses in your community, it can benefit everyone.
Ways small businesses benefit the community.
Here are the 15 benefits of small businesses in a community:
1. They create jobs locally
Small businesses employ more people than large companies do. Since small businesses are just that, small, they need to hire many people to fill their company’s needs.
This is good for you and me because we can work somewhere and get paid rather than letting our hard-earned money go into the hands of big business companies.
According to the Small Business Administration’s (SBA) Office of Advocacy, 30.2 million small businesses in the United States employ 58.9 million employees.
2. Small businesses spur innovation and growth
New businesses are often created by people who get tired of working for or own large companies. They start their own little company where they get to work with the people they enjoy working with and sometimes even choose their hours.
New business owners tend to try harder than others at innovating new ideas that will benefit themselves and their employees.
New businesses open up more opportunities for people to grow and become more successful.
3. They get involved in the community
If your business is local, you want the community to know about it. This way, customers know where they can come for their needs, and employees can participate in volunteering events.
When you involve yourself and your business in the community, you tend to be more successful.
“A study of over 40,000 companies showed that those involved in their communities saw higher revenues – even when accounting for factors like size and industry.”
4. They give identity to a community
Many small businesses start-up shop in communities that have no identity. They come up with catchy names and designs for their stores that help the community identify with them and feel a part of something bigger than themselves.
When local businesses get together to sponsor events, it brings people from all walks of life together. These activities focus on differences and help people see that they are more alike than different.
5. Keep money in local communities
By spending money in our communities, we help the local economy thrive. Research shows that even when people shop online, they prefer to buy from companies within their community when possible.
As mentioned earlier, small businesses employ more people than large companies do. When you spend money on big companies, your money usually leaves your community. It goes into the pockets of more prominent corporations that don’t invest back into the local economy as small businesses do.
6. Increase Tax base
When customers come into your business and spend their money, they are doing so voluntarily. This means the sales tax collected from purchases goes directly back to the city where you do business.
This is how local governments make their revenue. If businesses move out of a community, it could mean thousands of dollars lost each year for the government, which would have to make up for that loss somewhere else – perhaps by increasing taxes on people who still do Business in the Community.
7. Enhance Neighborhoods
Many small businesses hire locally, giving residents a chance to work and make money right from their neighborhoods. When you spend your money at local businesses, it can help improve the overall look and feel of where you live.
8. Local Decision-Making and Involvement
Since local people usually own small businesses, they tend to help decide about their business community. They get involved with monthly meetings, allowing city leaders to find out what their citizens want and how they can work together to accomplish these goals.
9. Build communities through events
Many small businesses become family-oriented places that contribute to the overall well-being of a community. They sponsor, help plan and get involved with local events that bring people from all walks of life together to have great conversations and find common ground.
These activities become opportunities for people to reach across the aisle, discuss their differences rationally, and gain new insight into how they can make things better for everyone.
10. Improve diversity in business ownership
Minorities, immigrants, and those from low-income backgrounds often have trouble getting jobs. When they start businesses of their own, they hire as many people as possible, so the community is more potent as a whole.
Many business owners don’t believe it is workable to break into the world of entrepreneurship on their own – but this doesn’t have to be the case. There are multiple resources available for those who want to start their businesses but don’t know where to begin, including business coaching and mentoring programs.
11. They have environmental benefits
Many small business owners are concerned about the environment. They recycle, use eco-friendly cleaning supplies and work to make their stores greener in every way possible.
They also encourage their employees to be mindful of their environmental impact when they go home after work. By creating a culture where people care about the planet, local businesses make it easier to go green.
Many small businesses also donate a percentage of their profits to environmental groups, community gardens, and other initiatives that help the environment. The more money they have available for this type of work, the better the lives of future generations will be.
12. They build financial confidence
When people spend their hard-earned money at the locally owned businesses in their communities, they invest in what matters most to them.
Some things they spend their money on may seem trivial compared with world issues – but it’s important to remember that many people have very little disposable income. This means every dollar is precious and something they worked hard for.
By purchasing a product or service from a local business, people are telling others they believe in the work being done by their neighbors. They are also investing in themselves and their future financial goals.
13. Help in money circulation
When people spend their money with local businesses, it creates a cycle of spending in the immediate community. If they buy lunch once per week at the deli down the street, they give that business more than $5 each time.
Suppose someone spends $300 on average each month at the local bookstore. This amount turns into $3,600 each year that stays in the community.
This churning cycle continues throughout the community as people buy coffee, haircuts, car repair services, and other necessities at local businesses. No matter where they are spending their money, it ultimately ends up being spent within their neighborhood, so no one loses out on potential income.
14. Provides access to services and goods
One drawback of living in a more rural area or one that isn’t very business-friendly is that people may not have access to specific items.
This includes everything from high-quality products at reasonable prices at local grocery stores to jeans with all the latest styles right down the road. When these businesses are available on every corner, people can walk out their front door and get what they need in a matter of minutes.
15. Small businesses are flexible with their hours
Many of the most successful small businesses have a husband and wife team running them. This means they need to adjust their schedules as needed, especially around holidays or if one half of the couple needs more time off than the other.
This is great for employees because it means they can still maintain a steady income while still having time to take care of personal responsibilities.