7 Reasons why you should start and operate a Small Business (and they aren’t what you think)
Why your small business is important for the community
I read all kinds of articles about business growth, most of which peddle unattainable advice.
They advise entrepreneurs to grow their business to the size of MacDonald, Amazon, Facebook, eBay TikTok, and Twitter.
But in reality, not every Entrepreneur wants to grow into a multinational, and surprisingly most Entrepreneurs just want to grow businesses that are small enough to manage but large enough to have an impact on their communities.
Most small businesses are local corner shops down the street, one-man barbershops, local grocery stores, repair shops, your plumber, and your electrician. The guys you call when you need to fix a leak or repair an electric short circuit.
They play a vital role in providing microservices and are defined as businesses with less than 500 employees commonly known as SMEs (Small Medium-Sized Enterprises).
Small businesses power economies, all around the world, they provide jobs in neighborhoods and act as meeting places for people in the neighborhood.
Most governments actually go out of their way to promote and encourage their setting up and growth, because they create jobs and in many cases support entire communities.
They are at the heart of America’s prosperity and vital to a healthy labor market. — In the last 25 years, two-thirds of all new jobs created in the USA were created by small businesses.
Bigger isn’t necessarily better or more important, here are some reasons why you shouldn’t shy away from starting and operating a small business:
1. They create job opportunities
According to the Canadian government, over 8.4 million Canadians are employed by small businesses. This number is equivalent to 69.9% of the entire labor force.
In the USA small businesses account for 64% of all new jobs. And that’s why they continue to grow, especially with easy access to a wider online customer base, state government support, and support from big tech companies like Facebook, Amazon, and Google.
2. More money circulates in the local economy
Money spent by small businesses circulates back into the local community because most businesses tend to outsource products and services from other local businesses creating a cyclical local economy.
This is because, small companies are more likely to seek out other small businesses in their locality.
For instance, a local coffee shop looking to create a new logo will hire the services of a local graphic designer, or a retailer needing renovations will engage the services of a local contractor.
Salaries paid to their employees will most likely remain in the community. Most small business employees and owners order meals from local restaurants and shop from local retailers.
3. They keep taxes closer to home
Small businesses benefit local communities through taxes.
Taxes paid by large corporations don’t benefit local communities. But local taxes paid by small businesses end up improving local amenities, they end up paying for community developments such as schools, green spaces, public transit, and health care.
4. They build community identity
Small businesses started by local entrepreneurs and operated by local employees are a representation of their communities. They reflect the community’s identity, unlike large corporations whose sole interest is to maximize profits.
Over the years’ small businesses become part of the local landscape, their unique ambiance and charm are a reflection of neighborhoods, think of local restaurants, coffee shops, boutiques, and local artisans. They attract tourists and make locals proud.
5. They’re involved in the community
A study by Small Biz Trends reckons that 52% of small businesses donate to charities in their locality.
Small businesses and their owners tend to be more involved with their communities. They sponsor, organize, and host local events which contribute to a lively community.
And because they are more likely to contribute to local charities, they avail job opportunities to people in those neighborhoods.
6. They innovate and diversify the local marketplace
As competition for customers intensifies and large corporations swallow up small businesses, it’s time small businesses fought back to avoid the risk of disappearing altogether.
Most successful small business owners tend to be innovative and creative entrepreneurs. They have to be innovative and unique to stand out, doing different things from their competitors.
And that’s the hope of small businesses, over the years, they have consistently come up with unique off-the-press ideas, coupled with the fact that it is relatively easier for small businesses to reinvent themselves.
They are nimbler, with tighter-knit teams and simple communication channels than large corporations. This enables them to pivot quickly and change their operations with minimal disruption.
That being the case, early-stage entrepreneurs starting small businesses can act as laboratories of innovation, testing new ways of doing things to see what pays off. That will put their local communities on the map.
Innovation in the community encourages growth and diversity because when local businesses offer unique products and services, that adds to tourist appeal, which gives the community a distinct personality and brand.
7. They conserve the environment
Who knew there were so many ways small businesses benefit the community?
Small businesses are good for the environment. For starters, local businesses tend to set up shops in pre-existing buildings. These businesses don’t take more space than they need, unlike large corporations who have to tear down existing buildings and expand into green spaces to build infrastructure.
Moreover, small businesses purchase and transport local products from smaller manufacturers, which have much less impact on the environment.
Finally, small businesses are mostly located in community centers where it’s easier and common for employees and patrons to walk or cycle. This means very few use their vehicles reducing environmental pollution.
In Conclusion:
If you are contemplating starting a small business, take the plunge, and if you need help with your small business reach out to Living Free Financial Services or Moore Small Business Services.
Don’t worry if you don’t have enough capital, there are many people looking to support local and small businesses and that’s where Moore Small Business Services comes in, they help small businesses find financial help.
