Small Businesses, Big Impact

Especially in America, innovation is emphasized heavily, so it’s only telling that citizens hoped for a better future with reliance on small businesses.

By Srija Vem

We see an influx of creative ideas materialize into business; from fifth graders creating small-scale slime-making businesses to graduate students initiating the next Grubhub, there are endless opportunities to pursue even the smallest ideas. It becomes important, in any case, to analyze what’s called the backbone of America’s economy: small businesses. As they account for 44% of the US economy, small businesses are key to not only creating new industries but also propelling the state of the economy forward.

General Importance of Small Businesses

Firstly, it becomes important to note the importance of small businesses for the local economy. Since small businesses attract tourists, especially for their usually niche markets, there is great importance in paving the path to create more small businesses. Especially when COVID-19 began taking a toll on the economy, large movements were created to support small businesses, hence the trending #supportsmallbusinesses on Twitter.

A Link to Large Businesses

The reason for the importance of small business lies in the nature of creating innovation that can lead to long-lasting change. Not only do they affect job creation, innovation, and the acts of larger businesses but they also work to shift the culture of the economy. For larger companies, small businesses can be helpful to catalyze greater change, serve as both vendors and customers, and as potential acquisitions.

In fact, small businesses play a role in more than 65% of net new job creation. This is especially important as large businesses are able to narrow the scope of their search to any specialized small businesses.

As small businesses generate new ideas, those larger in scale may choose to incorporate the innovations into various branches of their own company. In this case, innovation is catalyzed and people are able to reap the benefits of faster care processes.

Job Creation

Small businesses play a pivotal role in creating jobs as the constant growth of a company from an idea to an action requires people to fill the roles. In the COVID-19 era, increasing jobs was a large priority, so it was intrinsically necessary to grow small businesses to support the foundation of the economy. Especially in America, innovation is emphasized heavily, so it’s only telling that citizens hoped for a better future with reliance on small businesses.

The Overall Need

As consumers, it’s important to analyze current habits and push towards a more sustainable future; perhaps shopping with the same large businesses is not lending any benefit to the larger economy. So, once we are finally able to understand the depth small businesses provide, it’s important to seek opportunities to become a consumer of the local, small stores that we often see in passing. Now, taking the active measure to initiate a positive purchase is the best way consumers can show support for the economy through everyday actions.