You likely have an intuitive sense that small and independent businesses are vital for the health of our overall economy and local economic ecosystems. Even if you don’t, you’ve likely heard someone comment on the fact that small businesses are important.
But why is this the case? And what steps can you take to support the small and independent businesses in your area?
Novelty and Diversity
For starters, small and independent businesses present more opportunities for novelty and diversity. Big businesses that serve the entire nation tend to eventually become featureless, corporate blobs that all follow the same tired bureaucratic processes. But small businesses have much more flexibility in how they serve the local population – and they tend to be run by eccentric people with interesting personalities, who can inject those personalities into the business.
There are many impressive advantages to this. Some small business owners intentionally try to preserve traditions or cultural ideas, such as maintaining the legacy of the 5 & 10 store. Others try to create dynamic, interesting atmospheres that you’d never be able to find at a corporate store. In any case, small and independent businesses result in an economy that has far more novelty and diversity.
Economic Contributions
Small and independent businesses also offer a variety of direct economic contributions.
- Innovation and growth. When businesses become too large, they tend to become slower, more bureaucratic, and less flexible. Accordingly, they become less creative and less innovative – but this isn’t a problem for small business owners. Young and inexperienced entrepreneurs are often much more likely to take risks, come up with creative ideas, and invent new ways of doing things; these innovations fuel large-scale economic growth. If these ideas catch on, they can help the company grow to massive proportion; some of the biggest and most powerful companies in the world today had their start as small-scale, local operations.
- Job creation. Despite their “small” nature, small businesses are disproportionately responsible for job creation in the United States, ultimately contributing nearly two-thirds of all new jobs. There are many reasons for this, including the fact that new small businesses need to hire all-new staff and the fact that small businesses going through growth are more willing to expand their workforce than a corporate juggernaut. Whatever the case, more jobs and better jobs are good for everyone.
- Local economic activity and taxes. Local small and independent businesses tend to stimulate local economic transactions. This, in turn, generates local tax revenue that can then be used to beautify the city and provide more resources to its inhabitants.
Convenience and Accessibility
Your city probably has a Walmart, a Home Depot, and a McDonald’s within driving distance of your home. But do you have a local grocery store or an interesting gift shop within walking distance? Small and independent businesses tend to be more convenient and more accessible in many cases, providing residents with a quick and easy way to get the things they need.
Personal Relationships
Small and independent businesses also provide each party with the potential to develop personal relationships. If the store owner is tending the counter every time you come in, and you come in at least once a week, it’s only a matter of time before you strike up a friendship. And if you have a small business of your own, you can use bartering and mutual support to make sure each business has a better chance to thrive.
How to Support Small and Independent Businesses in Your Area
Are you interested in supporting the small and independent businesses in your area?
These are just some of the ways you can do it:
- Shop locally. This tip should be obvious, but it’s easy to ignore. If you can buy an item from a local small business owner instead of a massive corporation, you should do it.
- Write good reviews. If you have good experiences with a local business, make sure you leave them a good review. It helps their online visibility and lets them know they’re doing things right.
- Share your experiences. Word of mouth advertising is also very valuable. Make sure you tell your friends and family members about your positive experiences with local owners.
- Get involved. If you can, get involved. If you have a friend with a business idea, help them make it a reality – or start a small business of your own!
If we all do our part to support the creation and success of small and independent local businesses, we can support a healthier economy – both locally and nationally – on top of the subjective benefits, like better personal interactions.
Best of all, there’s no real sacrifice required on your part; you can support these businesses inexpensively and with only a small investment of your time.
