Last Updated on
When shopping, it’s tempting to step into stores or browse the websites of national brands. After all, they have been trusted by millions of shoppers across the country, for many years. They’re sure to have excellent offers and superb customer services.
These national brands, however, are in competition with local businesses in your community. And no matter how sparkling a transaction with a corporation may seem, it does your community good if you opt to buy from a locally-owned company.
The U.S. Small Business Administration reports that in 2018, there were 30.2 million small businesses in the country, employing about 47.5% of the national workforce. By skipping major retailers and choosing these small businesses, you help create more jobs and allow your community to prosper.
4 reasons to support local businesses
You help spur job creation
Supporting local businesses encourages business growth, which in turn creates more jobs. A growing company will need more people, and it will certainly look for promising talent from within the community. It will help reduce the unemployment rate in your area.
Yes, buying from major retailers would also create more jobs, but the impact is more pronounced when it’s the small brands that need people. Small businesses accounted for 61.8% of net new jobs from the first quarter of 1993 until the third quarter of 2016.
The smallest companies were the ones that created the most jobs. Firms with fewer than 20 workers added 1.1 million net jobs to the job market.
You enable people to give back to your community
If you buy from small businesses, you enable your community to prosper and develop. For every $100 you spend at a local shop, $68 will stay in the community.
In contrast, spending $100 on a national chain means only $43 will stay. With a stronger re-circulation of money, buying local strengthens the local economy.
Moreover, the people you transact with often give back to your community. Local business owners have a stake in the welfare of the neighborhood, so they’re more driven to give a higher percentage of revenue to local development.
They’re more likely to donate to non-profit organizations in the community. They are also motivated to be involved in community initiatives and volunteer work.
You support more than you think you do
The impact of supporting local businesses is not limited to that company. Local shops often employ local vendors and suppliers. For instance, they employ bookkeeping services from local small businesses, source ingredients from the local market, or partner with local B2B building contractors. If you buy local, you also support these businesses.
In return, you receive tailored advice and expert craftsmanship. Small business owners are passionate about their work; they invest every ounce of their energy into providing the best for their customers.
Moreover, since they know the locality like the backs of their hands, they dispense advice that takes into account the unique challenges of your community.
More importantly, buying from local shops gives you the assurance that you’ve helped your neighbors pay their mortgages, send their kids to school, and meet their daily needs. It’s concrete proof of community spirit.