Small businesses are the lifeblood of many communities. While brick-and-mortar shops may struggle in this era of online retail giants, local entrepreneurs still have so much to offer their neighborhoods. Every time a person supports a small, locally-owned business, whether it’s getting their morning coffee, picking up supplies for a project, or finding a unique gift, they’re helping to sustain the character of their town and keep money circulating within the community.
The small business sector creates jobs, increases tax revenue, and attracts other businesses—helping the whole community to thrive. In this post, we’ll explore some essential ways that small businesses give back directly to their cities and towns daily through economic and social contributions.
The Impact Small Businesses Have on a Community
A successful small business is already a massive feat, given that these businesses are competing against big industry names and companies. Learn how these small businesses can significantly impact their local community and contribute to its growth and development.
Create Job Opportunities for Locals
One of the primary ways communities can benefit from small businesses is through the local jobs these establishments offer. As small businesses grow and expand, they hire more employees to keep up with the demand for their products or services.
Benefits of hiring locally:
- Boost local economy
- Reduce carbon footprint
- Strengthen existing relationships
Local jobs offered by small businesses can sustain a happy community. At the same time, it improves customer service since local employees know the community more than anybody. They also understand a customer’s needs better.
Donate to Local Charities
Small businesses are more likely to give back to their community through donations. They’re often rooted in a particular cause and want to make a difference. These businesses can give donation checks and in-kind contributions or pledge a percentage of their sales to various causes.
Even if a small business can’t give big checks for donors, they can still support a local charity by volunteering their time and services or hosting fundraising events. It’s the type of community involvement that creates a form of goodwill and inspires others to do the same.
Improve the Community’s Economy
Another reason to support a small business is that most of the money will circulate back into the local community. One way for the money to remain within society is for small business owners to outsource their resources from other local businesses instead of going to a larger company. They also tend to shop locally, encouraging everyone around them to do the same.
Apart from that, it decreases the poverty levels of the community. More people move to become entrepreneurs in the town, which allows locals to gain employment. It effectively changes low-wage income and transforms the community into a successful one.
Maintain and Enhance the Community’s Identity
Small businesses help shape a community’s character by being a solid representative showcasing its unique flavor. Thriving local businesses often become community fixtures, treasured for their high-quality products and services. As a result, they become a part of the local landscape that many people and outsiders can easily recognize.
The unique ensemble of small coffee shops, flower shops, grocery stores, and other local boutiques creates a sense of place that makes the community more attractive. This distinctiveness makes the town more charming and adds a hint of originality that can’t be found elsewhere. These can attract tourists, making locals proud of their town and their businesses.
Taxes are Closer to Home
Like money, taxes wind up back into the local community. The taxes paid by customers to small businesses, and those paid by the business owners to the government can pay for the community’s improvements.
Some examples include:
- Building a local park for children to enjoy
- Fixing and maintaining the roads, streetlights, and other infrastructure
- Funding for public programs like libraries, recreational facilities, or public schools
- Conserving green spaces, public transportation, and healthcare facilities
It’s pretty evident that most taxes go to the community, where it can do the most good. On the other hand, taxes paid to giant corporations won’t stay within the local transit. Instead, it goes to the company’s partners from other countries, so it’s not spent in a way that benefits the local community.
Diversifying the Local Marketplace
Your local family-owned mom-and-pop and coffee shops may not be the same in terms of the services they offer, but they produce diversity in a small town. It adds variety to the local marketplace, so there’s no competition between businesses.
More small businesses create an opportunity for a community to access different products and services that can’t be found in big box stores or chain restaurants. Business owners are forced to be innovative and offer something different to the community, giving consumers more options and keeping them satisfied.
Better for the Environment and the People
Local businesses tend to build their shops in existing buildings instead of building a new structure, which can conserve the community’s environment. They also tend to use more environmentally friendly products and practices, such as using renewable energy sources or recycling.
Other ways a small business can positively affect the environment:
- Environmental conservation
- Using locally produced products from smaller manufacturers
- Situated in areas that are accessible through walking and biking
- Supporting local farmers and reducing carbon footprint
- Using recyclable packaging materials
Large companies are dangerous for local communities who want to preserve their green spaces for more important things. They tend to take up more space and use more resources, leaving less room for nature and creating bigger carbon footprints that can spike up the pollution levels in the community.
Training and Apprenticeship Options
Small businesses can support young learners by providing training and apprenticeship. They learn valuable skills that can be used at home and when it’s time to apply for a job. Internships from small businesses create a chance for the younger generation to gain experience in the workplace, which is essential when starting a career.
Apprenticeship also helps small business owners who often face difficulties when finding employees. They can provide on-the-job training to young learners, who can learn the ropes of the business and potentially become future employees or even start their own businesses.
Achieve a Happier Community Through Small Businesses
Small businesses are vital in building and sustaining a happy, healthy society. From providing jobs to ensuring that the environment remains unaffected, they create a ripple effect that benefits locals in the area. Supporting small businesses is crucial not only for the local economy but also for those that make up the community.