7 Reasons Why Small Business in Our Community Matters

There was a time when all business was done at a community level. We did all of our shopping in the community. We went to the local grocery stores, the local auto mechanics, we shopped locally to get everything we needed for our families. Remember the lady that made cakes for everyone’s events, or the man you called to repair anything that went wrong with your home or your automobile, and the person we went to anytime we needed food for an event? The introduction of the big box stores change this. We started shopping more for value than purpose.

In recent years, a new movement has begun. This movement is taking consumers away from the large big-box stores and bringing them back to doing business in their very own communities. There are local farmers, service and other product providers with items that are locally made and sold on a small scale versus volume.

Many studies have looked at the value that small businesses bring to their local communities. These studies show that every dollar spent at a local business can lead to two or more times the amount of jobs and wealth in the community. These studies also show that communities with many local business have great economic performance.

When a person supports his local business owners, they enjoy benefits they can’t possibly get from shopping at the big box stores, this article goes over a few top reasons why you should support local small businesses.

1. Strengthens the Community

Small business owners become a very integral part of the community in which they live and work. They tend to know what’s going on in the community and how their decisions may impact their neighbors. They are also involved in the community. They may sponsor youth sports teams, donate to the city’s homeless shelter or participate in community charity events. They become the heartbeat of the community.

By being involved locally small business owners also help to build a sense of community. Community based small businesses build community relationships. There are generally small business organizations where the owners get together and discuss what’s going on in the community and what can improve and benefit the community. Small business owners build relationships with not only their customers but also the suppliers of the products that they sell in the community. As more people shop at one business location the other nearby businesses may benefit to increased exposure.

2. Increases the Tax Base

Buying in your community keeps your dollars circulating in the community which also keeps your tax dollars in the community. When local residents shop with small businesses within their community the tax dollars stay within the local economy. The tax dollars are used for education, road improvement, public utilities and services. Local small businesses also tend to buy supplies they need for the businesses locally therefore keeping the dollars circulating in the community.

3. Create Jobs in The Community

The government counts on the fact that if a small business stays in business for three years or more they will eventually employ at least three people. Therefore, small businesses are job creators and most of those jobs are local jobs. Rather than driving from city to city employees can work closer to home. This not only cuts down on traffic congestion it helps our physical environment.

4. Fosters Entrepreneurship

Starting a small business can change the financial profile of the entire community. Small businesses are started by people that have the entrepreneurial spirit. By starting a small business people begin to taking control of their future. Entrepreneurship fuels the growth of the community. A small or home-based business that makes $500 a month can change the financial profile of a family. This leads to sense of well-being for the family and the community. This helps families move out of low-wage jobs into the middle class.

5. Creates Innovation and Competition

Community based small business encourage economic growth. The smaller home-based business must serve a legitimate need in the community. They must stand out from the crowd. This creates innovation and competition. With multiple small businesses, all striving to be unique this creates a competitive environment for growth for the community. This will result in a healthy marketplace and happy consumers.

6. Diverse, Locally Made Products and Services

Locally made one-of-a-kind products attracts customers to the community. Think about that one food restaurant that people drive miles just to come to because of the great food and the great customer service. What about the bakery that makes those special kind of desserts that people drive miles to get? Small community-based businesses can provide this kind of activity for the community

7. Helps Develop Youth Entrepreneurship

Community based small businesses builds youth entrepreneurs. By employing an engaging youth in the small businesses in the community they will learn how to start businesses for themselves or take over the small businesses that have been started in the community. We learn by doing and that is what is missing in our small business environment today. When I was growing up most of the adults that I knew had something they did during the day something they did after hours as a small business. I learned from them how to go into business for myself. I learned by watching, I learned by working, I learn by doing and having the support of these older people. We must get back to that.

Summary

This is not a race or religion thing. It is a community thing. We need to support the people that live and work in our community to keep the dollars circulating in the community. There are many funding organizations that are working to provide funding for community economic development. Go to the website of the county or city that you live in a search under economic development to find out the services and programs that are available for those that decide to live, start and grow their businesses in their community. Not only do they provide funding they also provide technical support.

Supporting community small business is very important to the stability and economic growth of our nation, one community at a time.

Author Bio- Marc Parham

Marc Parham has been successfully consulting for all types of businesses for over 20 years. He has consulted for small to mid-sized business, large corporations, and non-profit organizations in all areas of business development. He has certifications in Project management, Network Engineering, Non-profit Management and other areas of business development.

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