Why Small Businesses Matters in the Community

November 29, 2022

What makes the community you live in unique? Is it the people, size, lifestyle, culture, or traditions? While there can be many factors, small businesses also play a major role in bringing uniqueness and charm to a community. 

In addition to being a breath of fresh air from corporate giants, small businesses play a vital role in communities as they make up 99.7% of all American businesses according to the U.S. Chamber of Commerce. With a vast majority of businesses falling under the “small business” category, it’s important to understand their contributions.

What is a small business?

The Small Business Administration (SBA) defines a small business as an independently owned for-profit enterprise that employs less than 500 people. Most importantly, small businesses are much more than just their company sizes, they are neighbors they are neighbors helping neighbors or friends helping friends. 

Why do small businesses matter?

Simple, they benefit their local communities in many ways. 

Job Creation – The first way small businesses impact the community is through job creation. According to the SBA, they generate two-thirds of new jobs. Local businesses also tend to hire employees who live near the communities in which they operate, boosting local employment rates and creating long-term growth. 

Economy Stimulation – When consumers shop at small businesses, a portion of the money they spend ends up circulating back into the local community through taxes and paychecks. That money can help support the creation of new small businesses and improve local public services. 

Additionally, small businesses tend to support other small businesses. For example, if a local retailer needs to invest in some renovations, they might seek another small business to encourage others to shop small.

Innovation – To stand out from the competition, small businesses have to be innovative. If a local business offers something unique, it adds appeal to the area, gives the community a more distinct personality, and creates a more diverse marketplace. 

How can you support small businesses?

You can support small businesses in your community by remembering to shop small. Next time you’re looking for a new shirt, be sure to head to the local boutique. Additionally, small businesses rely on word-of-mouth marketing to bring new customers through the door, if you find a deal or had great service let your friends know about it.

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