How pride of ownership and “buy local” is driving small businesses

Many people in Ontario and across Canada are starting businesses, and not just so they can stay at home and work in their pyjamas. Pride of ownership, contributing to the local community, and independence feature highly on the list of motivations.

In a nation of small businesses, more than a third of Canada’s small enterprises are in Ontario, according to Statistics Canada. They contribute 28% of the province’s GDP.

A common thread among many small businesses is a desire to be part of the local community. When the Globe and Mail ran a contest to find Canada’s “most remarkable” small businesses, this motivation featured strongly. The final 10 included a mobile yarn truck in Kingston, a health and wellness company in Guelph, and a social enterprise consulting firm in Richmond Hill.

Not all businesses are full-time enterprises.

The terms “gig economy” and “side hustle” are now in common parlance. People start creative Etsy businesses, do some marketing consultancy on the side, or provide services ranging from dog walking to running errands.

Why people start businesses

Not everyone starts a business to make money, although making enough to earn a living is obviously a goal for most entrepreneurs and small business owners.

Part of owning a business is the pride of ownership. It’s that thrill of looking at your business card and seeing “Owner” there in black and white. Or that feeling of independence and empowerment you get from setting your own hours and managing your own work conditions.

In 2006, a global survey of over 4,000 small business owners found that 70% of them just wanted to make enough money to cover their living expenses, while 64% cited control over the future as a motivation.

Other motivations include a more personal working life, one where you can deal directly with customers, especially in your local community. Entrepreneur Magazine lists 20 reasons to start your own enterprise, including pride in building and owning something, doing some good, and becoming more financially independent.

The “buy local” movement

One development that has spurred many people to start a business is the “buy local” movement. From farmer’s markets to craft breweries, “buy local” is a response to increasing concerns over climate change and unfettered globalization.

It’s a way for businesses and consumers alike to support and contribute to the growth of their local community.

Pride of ownership is central to the success of businesses that cater to local markets. When you know you will hand over the beer you brewed or the table you built directly to a customer, you are more invested in creating excellent products and providing top class service.

On the flip side, many consumers take huge pride in supporting local businesses and derive genuine pleasure from seeing them succeed.

Today’s technology makes setting up a business, building awareness, and communicating that pride of ownership and community spirit easier than ever before. Many new businesses use Twitter, Instagram and other social networks to build a local following and position themselves as viable local alternatives to big brands.

And the whole community really does benefit — financially as well as socially. As dollars move between local businesses, jobs are created and wages rise.

Closing the buy local loop

How can you weave this pride of ownership and sense of community into other areas of your life? Your finances, for example.

You might already be using a local accountant, bookkeeper or other service providers, but what about your bank?

The big five banks are owned by shareholders. They are focused on profit. One way you can extend those feelings of pride of ownership and community spirit to your finances is to consider banking with a local Credit Union — a local business like yours.

Local banking closes the “buy local” loop. You enjoy the same services banks offer, although with lower fees and often higher savings rates. At the same time you are investing in other local businesses and helping to strengthen the local economy.

Credit Unions also share some characteristics with small business owners. As well as taking pride in being member owned and serving the local community, they are independent and focused on providing great products and service, rather than making a profit.

If you take pride in buying local or serve customers who buy local, why not bank locally, too?