Ways Small Businesses Empower Their Communities
The government in many countries encourages small businesses. These companies can make a positive contribution to the local economy. Although large companies generate a lot of revenue, the local community benefits in many ways from small businesses.
1. Create job offers
When a new business opens, it brings new employment opportunities. Unemployment remains a problem for many countries. Small businesses can create jobs and lower the country’s unemployment rate.
2. Bring in new ideas
Entrepreneurs bring new ideas with them. You receive innovative products and services. One study found that small businesses receive more patents per employee than larger companies. These help you to have a better lifestyle and contribute to the economic growth of the country.
3. Ensures a better environment
If you see small businesses spreading in your local streets, you do not have to travel long distances to shop or service. You get everything locally. So you can either walk or ride a bike and reduce the emission of carbon dioxide into the environment.
4. Tax base
If residents pay taxes after buying local products, the money stays in the local economy. Most small businesses also buy locally, so that the profits remain within the community and this leads to economic development.
There are good and bad times in the economy of a country. During the recession, big companies suffer huge losses. The dismissal of workers and the unemployment rate is rising. The revenue will be cut drastically. A small business is not affected by the recession. You can still earn revenue because their loss is minimal.
6. Supports big companies
Many large companies outsource their work to small businesses. This allows them to focus on expanding their business and generating more revenue. In fact, small businesses can actually support the operations of large companies.
7. Potential to become a large company
Small businesses have the potential to become a big company in the future. Nike started out as a small business and today is an internationally known brand. So, as the business grows, it can make an important contribution to the country’s economy.
Reasons To Be Concerned About Supporting Local Businesses
Supporting local businesses is something that makes sense for several reasons. Yet it is truly amazing how many people will drive out of town to save money.
Saving money by shopping from businesses in other areas than where you live is a bad idea. Here are three good reasons why you should be concerned about supporting local businesses and not just trying to save money shopping elsewhere.
- If they go out of business you have fewer places to shop. Because the money you spend in your local economy is passed back around several times you are not only supporting that particular local business you are supporting other businesses where you live too.
Do you like having choices? If you do not spend money with your local businesses they will go out of business and you will have fewer choices. This affects that particular business you are not shopping at as well as all of the businesses in your local market. That is something that you just cannot afford to do.
- Local tax dollars provide services you cannot do without. Certainly, things such as property taxes, vehicle taxes, and so on to help support some of the services we all need in our communities.
But the sales taxes collected on purchases from businesses goes much further. When sales tax revenues are down you begin to notice cuts in things such as policeman, firemen, street repair crews, and so on.
When you drive to another town to spend your money you are helping them support their local services. Is that worth saving a few dollars on a sale that is being run by another business out of your local market?
- Local business owners have families just like you. Chances are your kids have gone to school with the kids of a local business owner. You may know the spouse a local business owner personally.
Consider that when you spend your money away from these businesses you are hurting their families. This is money not available to them to invest back in their kid’s education, in their local schools, and in shopping with other local businesses.
These local business owners are just like you and they are trying to earn a living and raise their families the best they can. It just is not worth hurting them to save a few dollars.
We all live in an economy that is financially tight right now. Trying to save money in every way we can is important.
However, hopefully, these three reasons why you should be concerned about supporting local businesses will make you think twice about spending your dollars outside of your own local community.