Small Businesses: The Backbone of The Economy

Small Business: The Backbone of the Economy graphic

Small businesses are the backbone of the economy. They employ half of the working population and they play a vital role in creating new jobs each year. In fact, small businesses have created almost 13 million new jobs in the United States over the past 25 years and account for 99.7% of all employers according to the U.S. Small Business Administration. Not only are they the backbone of the U.S. economy as a whole, small businesses are also the backbone of their communities. Your local small businesses make many positive impacts on your community. When small businesses thrive, so do their communities. So, how does this work?

Let’s take a look at five ways in which small businesses contribute to community economies—and why that matters.

Small Business Economic Contributions

1. You Create Jobs

The most obvious way your small business affects the community is by creating jobs. When you hire employees, you’re not just giving them a paycheck—you’re giving them an opportunity to support themselves and their families. And that has a ripple effect throughout the community, as those employees then have more money to spend on goods and services. 

2. You Keep Money Circulating Locally 

When you spend money with local vendors or service providers, you’re keeping money circulating within the community instead of sending it out of state or out of the country. This creates a virtuous circle of support within the community, and it also allows you to form partnerships with other businesses. These partnerships can be beneficial both professionally and personally, and they can help your business weather tough economic times. A strong local economy is good for all businesses, big and small. 

3. You Boost Property Values 

If you own or lease commercial property, chances are it’s worth more than it would be if there were vacant lots or abandoned buildings in its place. That’s because businesses help boost property values—and when property values increase, everyone in the community benefits, from homeowners to renters to local government officials who collect property taxes to pay for infrastructure improvements. 

4. You Contribute To Local Charities 

Most small businesses give back to their communities in some way. That’s because small business owners tend to be more deeply rooted in and invested in their communities and are therefore more likely to give back—whether it’s through financial donations, in-kind donations, or volunteerism. When you support a small business, you’re supporting a philanthropic force within your community!

5. You Help Make The Community A Better Place To Live 

 When small businesses thrive, communities thrive—it’s that simple! Small businesses help make neighborhoods safer and more vibrant places to live by investing in things like beautification efforts, crime prevention initiatives, and after-school programs for kids. They also create gathering places where people can come together to socialize and connect with one another—which is good for both mental and physical health! By patronizing small businesses in your community, you’re indirectly helping to make your community a better place for everyone who lives there.

Small businesses can’t be the backbone of the economy without help. This is why it is so important as small business owners, you do what you can to support other small businesses. Read on to see how you can help other small businesses strengthen the local economy.

Support Small Business

Shop at Small Businesses Whenever Possible

One of the best ways you can support small businesses is by shopping at them whenever possible. This includes shopping in person as well as online. Buying locally supports your community by keeping money circulating within your local economy. When you shop online from small businesses, you’re also helping them reach a larger audience and grow their customer base.

Support Small Businesses With Your Social Media

Social media is a powerful tool that can be used to support small businesses. You will boost their following by sharing their posts and leaving positive reviews on their page. By promoting small businesses through social media, you’re helping them reach new customers and grow their business.

Promote Local Businesses Through Word-of-Mouth

One of the best ways to promote small businesses is through word-of-mouth. Tell your family, friends and neighbors about the amazing products or services that are available from small businesses in your area. You may be surprised at how many people are willing to support local businesses when they know about them.

As a small business owner, you are not only the backbone of the economy but also have a profound impact on your community. Every day, in six tangible ways, your small business makes where you live a better place. You create jobs, circulate money locally, and boost property values—just to name a few! The effects of your entrepreneurialism reach farther than you may realize. So keep up the good work—you’re making a difference! And if you ever need help growing your business or want to explore how we can assist you in having an even greater impact on your community, schedule a free consultation with us today. We would love to chat with you about how we can support you in achieving your goals.

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