Small businesses form the backbone of local economy. Sure, every community has big box stores and chain restaurants, but that money goes directly back to the big corporations. Smaller companies help money stay in the area and fuel the local economy. If you’re planning to open a firm, or have already opened one, you should know why your business and so many others are contributing to the overall economic health of your area.
1. The Money Sticks Around
When customers shop local, every dollar they spend go right into the community — and that money goes a long way. Those dollars may allow the business owner to hire additional employees. Those employees may now be able to afford more things than they did before, so they’ll shop more, funneling money back into the system. It’s a loop that creates win-win situations. Shopping local really does benefit the local people and the local economy.
2. Jobs Are Created
Small businesses create jobs. In suburbs or rural towns, there may not be that many large factories or retailers providing employment. That’s where small businesses come in. The bigger the business gets, the more they’ll have to hire – for their storefronts, for their factories, for shipping, you name it.
3. Increased Exports
Did you know that small businesses account for 98 percent of the firms in the country that are exporting goods? This is an impressive fact, considering how many huge corporations regularly ship items abroad. Exports by small businesses are a crucial part of the national economy and help the GDP grow.
4. Niches Are Represented
Small businesses often take advantage of unfulfilled niches, which is great because they offer what many bigger chain stores may not. For example, take an entrepreneur who opens an all-natural store that sells products for babies. Sounds like a niche, right? Since chain stores may not offer similar items, this business will be the go-to supplier in the area for anyone seeking all-natural baby products. Being the only store that offers a particular type of item, that business would naturally attract lots of customers.
5. Creative Thinking
Entrepreneurs are often highly innovative, and spearhead many trends in this country – particularly those that are information-driven. It is the Information Age, after all. This kind of thinking among small business owners encourages a national trend toward creating unique new processes and new technologies.
Every year, small businesses around the country are creating jobs, innovating, and boosting the middle class. So if you thought that big corporations were the foundation of the economy, think again!
For more information on how to build a small business that will contribute to the local and national economy, visit www.biz2credit.com.