Small businesses are an important part of any healthy community as they provide a unique and personal touch and contribute to the local economy. However, supporting small businesses should not be a one-way street. It is essential to acknowledge that small businesses also have a crucial responsibility to give back to the communities that support them. By doing so, they can help ensure a thriving and dynamic future for everyone.
Why Support Small Businesses?
- Local Economic Boost: Money spent at small businesses recirculates within the community, creating a multiplying effect benefiting everyone.
- Job Creation: Small businesses are primary job creators, strengthening the economic backbone of their towns and cities.
- Character and Charm: Small businesses offer a distinctness and personality that chain stores can never replicate.
- Customer Service: Often, small business owners go above and beyond to provide personalized service and build relationships with their customers.
The Responsibility of Small Businesses
Small businesses play a crucial role in the development and growth of our communities. While it's evident that we want these businesses to succeed, we must also acknowledge that they have a responsibility to support and contribute to the community that helps them thrive. This is because a thriving community helps small businesses grow, and in turn, these businesses must reciprocate by investing in and supporting the community. Here's why:
- Stagnation vs. Growth: A community without small businesses giving back risks becoming stagnant. New blood, fresh ideas, and the entrepreneurial spirit found within small businesses are vital catalysts for economic growth.
- Preservation and Progress: Without growth, there are shrinking tax bases and decreased funding to preserve the things that make a community special. This can include the historical integrity of areas like Downtowns, often held up by a District Authority (DDA). In efforts to protect history, communities may inadvertently stifle progress by keeping new, innovative businesses out.
- Community Investment: Small businesses often take pride in their towns and want to see them succeed. Giving back – whether through charitable donations, sponsorships, or volunteer work – demonstrates a commitment to building a better future for everyone.
A Call to Action
Supporting small businesses means understanding that the relationship is symbiotic. When we shop locally, we cast a vote for the kind of community we want. And for small businesses, success shouldn't just be measured in profits. We can encourage small businesses by:
- Shopping there intentionally: Choose the local store when possible, even if it means a slight price difference.
- Advocating for small businesses: Encourage local policies that support them such as your local Chamber of Commerce and other Economic Growth organizations.
- Holding businesses accountable: Express appreciation for small businesses that give back and respectfully suggest that others could do more.
Only with a collaborative effort between communities and the small businesses within them can we create vibrant, prosperous places to live. Let's remember – it's not just about keeping small businesses alive, but about helping both the community and the business itself thrive!
Interesting Statistics
Job Creation:
- Small businesses employ nearly half (46%) of the American private sector workforce and are credited with creating 63% of new jobs from 1995 to 2021.
- Small businesses often stimulate job creation in other sectors through demand for their goods and services, fostering a multiplier effect.
Economic Impact:
- There are 33.2 million small businesses in the US, accounting for 43.5% of the gross domestic product (GDP).
- Thriving small businesses contribute to higher local tax revenue, which communities can use for various initiatives, including infrastructure development, education, and community programs.
Community Vibrancy and Identity:
- A study by the Kauffman Foundation found that communities with higher rates of new business creation had higher levels of civic engagement and stronger social cohesion.
- Small businesses contribute to the unique character and personality of a community, offering diverse products and services not readily available in chain stores.
- Despite challenges, the number of small businesses in the U.S. has actually doubled since 1982.
Entrepreneurial Spirit:
- Since the pandemic began, there has been a surge in new business applications, with over 16 million filed since 2021, resulting in 2.8 million new businesses established.
- Interestingly, the average small business is actually operated by a single founder, highlighting the strong individual drive for entrepreneurship in the US.
- While financial gain is a factor, a surprising 60% of individuals start businesses to be their own boss and have greater control over their work.
Challenges and Opportunities:
- Despite the high number of new businesses, the reality is that 50% of small businesses fail within the first five years.
- While many small businesses contribute significantly to their communities, there's still room for improvement. Only 65% of small businesses are reported to be profitable, indicating the need for continued support and resources to help them thrive.
These statistics showcase the crucial role small businesses play in the US economy and the entrepreneurial spirit driving innovation and job creation. However, they also highlight the challenges they face and the importance of fostering an environment that supports their growth and encourages them to contribute to the well-being of their communities.
By: Washington County Chamber of Commerce