Co-Founder and CEO of Upwise Capital, a leading small business financing marketplace specializing in the cannabis industry.
Small businesses continue to be the bread and butter of our economy. And although local small businesses are considered the underdogs next to big box conglomerates, global banks and large supply chains, the pros of supporting locally run businesses pack quite a punch.
The impact of Covid-19 has left an unimaginable mark on the global community—and small businesses are no exception.
Let’s break down why it’s a great idea to support local small businesses.
Stimulate Local Economies
By making a commitment to shop local or support small businesses, you cycle money back into your community. If you’re like most Americans, you shop at large chain stores. You may even feel like it’s an obligation to shop at these places because they have the best deals and you can find whatever you’re looking for. However, there are many reasons why buying local is better for your community and for your wallet.
The tax revenue made through sale taxes from local businesses support the local government. This is then used to reinvest in the community. However, big box retailers often receive tax breaks from local governments that don’t give local businesses such a luxury. By choosing to invest money into a large big box chain elsewhere, local communities won’t reap any of the benefits.
Reduce The Carbon Footprint
One word: transportation. A local small business tends to make more local purchases, which requires less transportation (less pollution and congestion). Additionally, since they are set up in a town or city, it will generally reduce traffic, habitat loss and resource depletion.
Create More Jobs
According to the Small Business Administration: “The 2019 Small Business Profiles show that small businesses added 1.8 million net new jobs in the United States during the latest year studied. The United States has 30.7 million small businesses, and they employ 47.3 percent of the private workforce.” Small businesses are the backbone of our economy. They help push economic growth and the local economy by opening up employment opportunities locally to people who may not want to be employed by these big box businesses.
Give Back To The Local Community
Small businesses are known to play a significant role in supporting local community charities and causes. It’s clear that local businesses benefit from a strong community, therefore the owners tend to be more engaged members of the community themselves. Small businesses donate 250% more than large businesses to local nonprofits and community causes, creating a positive cycle of giving back locally. This includes local charities, youth organizations, local first responders, local service groups and more.
Better Customer Service
When it comes to a small-business owner, all purchases, deals and positive reviews matter. Local store owners value each of their customers, and their very livelihood hangs on your own happiness. Unlike big chains, local businesses often hire people with proficient knowledge of the products they are selling or the ins and outs of the business they are running. Employees take the time to really get to know their clients and customers, making for an overall pleasant experience. Also, if you do have a quandary, rest assured you won’t be hashing it out with a robot.
Nurture Innovation And Growth
It’s simple. In order for small businesses to stay afloat, they need to stand out from their big box competition. It’s this type of survival-of-the-fittest mentality that allows small-business owners to become innovative entrepreneurs—conjuring up avant-garde ideas for solutions to problems, creating new unique products and taking new customers’ specific situations into account when assisting with their personal needs.
Support The American Dream
The American dream is the theory in which equality of opportunity should be made available to any American, allowing them to achieve their highest individual aspirations and goals. Small-business owners not only believe in this dream but have actively pursued it. By supporting small businesses and shopping small, you’re supporting real, genuine people who have put their passion ahead of convenience and whole-heartedly believe in the business they are running.
Now more than ever, it’s time to encourage strangers and friends alike to think globally, shop small, support local businesses and ultimately fund a better tomorrow.
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