Why is it Important to support Small Businesses?

Economists around the world theorize that small businesses and start-ups are one of the key drivers of economic growth. Our economy continues to rely heavily on small enterprises. Despite the fact that they are sometimes seen as the underdogs when compared to massive supply networks, international banks, and big-box multinationals, the benefits of supporting locally-owned businesses are considerable. Some include:

Boosting Local Economies: Local economies rely heavily on small companies. Supporting a small business helps the neighbourhood by generating cash and providing jobs. The municipal government is funded by the sales taxes collected from nearby enterprises. The money is subsequently reinvested back into the neighbourhood. Yet, local governments frequently grant tax incentives to big box retailers while not doing the same for neighbourhood shops. Local communities will only gain a negligible remittance by putting the locality's money into a giant corporation somewhere else. 

Increasing Employment: The 2019 Small Business Profiles show that small businesses created 1.8 million net new jobs in the United States during the most recent year under study, according to the Small Business Administration. In the US, there are 30.7 million small firms, which account for 47.3% of the private labour force. Our economy is based on small companies. By providing local employment possibilities to people who might not wish to work for these big box retailers, they promote economic growth and the local economy.

Encouraging Entrepreneurship: Entrepreneurs who are passionate about their products or services are frequently the ones to launch small firms. Helping small enterprises promotes innovation and helps to foster a culture of creativity and entrepreneurship. Small business owners are more creative by coming up with cutting-edge ideas for solutions to issues, and developing new and distinctive products while considering the unique circumstances of each new customer when addressing their individual needs thanks to this kind of survival-of-the-fittest mentality. 

Effect on the Environment: Smaller firms frequently leave less of an environmental footprint than larger ones. They typically generate less trash and utilise fewer resources. A neighbourhood small business typically makes more regional purchases, which needs less travel leading to less pollution and congestion. Furthermore, because they are located in a city or town, it will typically result in less traffic, habitat degradation, and resource depletion. 

Supporting Diversity: Independent companies frequently provide distinctive goods and services that are not offered by larger chain retailers. By encouraging diversity, small firms assist to make the market more vibrant and fascinating. You are helping real, sincere people who have put their passion ahead of convenience and wholly believe in the business they are running when you patronise small businesses and shop locally. 

Personalising Customer Service: Small business owners frequently handle customer service in a more personal way. When they get to know their clients, they are able to give individualised advice and services that larger organisations might find difficult to deliver. Every purchase, contract, and favourable review matters to a small business owner. The survival of small-town business owners depends on your satisfaction because they cherish each and every one of their clients. In contrast to large chains, local firms frequently employ individuals who have an in-depth understanding of the goods they sell or the workings of the industry they are in. An overall positive experience results from employees taking the time to get to know their clients and consumers.

Whether big enterprises or small businesses, they both have critical roles and places in the economy. Small businesses build platforms for innovation, offer job opportunities, and support local economies and other local firms, while big businesses facilitate international trade, draw visitors, and have an impact on the global economy. These two business models collaborate in a variety of other ways as well, including creating various jobs, offering services and goods, balancing demand and supply, and much more. We must make sure, as customers, workers, and contributors to the economy, that we recognise the value of small businesses and their ability to coexist peacefully alongside large corporations for the sake of overall economic progress.