Small Businesses Provide Large Community Impact

There was a time when we all relied on small businesses for our everyday necessities. More recently, “big box” brands and online retailers have been a main source of easy shopping. Everything we need can be purchased in one place and derived quickly, which appeals to many of us in our busy lives. Now there is a greater recognition of the positive impact small businesses have on our communities and shift back towards shopping local. The increased awareness around supporting small businesses can be seen in events like National Small Business Week, which takes place annually in May.

Small Businesses Provide Huge Charitable Contributions to Their Community.

Even though contributions may be smaller in scale, small businesses actually donate over 250% more to local charitable and non-profit organizations than larger companies in aggregate. A major factor of why these businesses choose to donate approximately 6% of their profits is to live up to their brand values and because their customers are their neighbors and they genuinely care about connecting with their community. 

90% of consumers want to know that the brands they purchase from are supporting the community. Consumers vote with their dollars and of increasing importance to these purchasing decisions is the desire to have company leadership consider more than just the profit motive to drive their business strategy. The rise of B Corps can be seen a response to this shift in consumer demand.

Small Businesses Offer More Jobs to Local Residents.

It may be easy to believe that small businesses make up a smaller portion of jobs within the community, but in fact, the opposite is true. More jobs are created by small businesses and entrepreneurs (with up to 20 staff members) than any other business level. 89% of all businesses in the United States are small, local businesses.

“Hiring from your local talent pool signals to your customers and clients that you’re a true citizen of your area. You’re invested in its growth, the well-being of its citizens and the health of the local economy. World citizenship must begin at home, after all,” says an article on Forbes. By hiring local, small businesses can begin to build their network of talent and connect with their community on an even more personal level. 

Buying From Small Businesses Means Your Dollars Stay Local. 

The positive impact that shopping locally at small businesses has, is influencing many people’s decision to opt for their community stores and restaurants. The portion of the money spent at small businesses that remains within the community is huge! Approximately 67 cents from each dollar stays local - and most of the remaining cents are used to pay wages to local employees, who spend most of that money locally as well. Thanks to the huge hearts of most small businesses owners, up to 23 cents of every dollar is given back to the community as well.

Remember how much our small businesses are responsible for the strength of the local community when shopping during the holiday season and throughout the year.