Small Business Week takes place in the US the week of May 2-8, 2021, and there has never been a better time to show your support for your local business community! You never know what unique items you might find when you shop small — plus, your money will go toward helping members of your community.
Small businesses make a big impact — on both national and local levels. According to a study by American Express,1 small businesses in the U.S. (defined as having fewer than 100 employees) are responsible for $4.8 trillion of the country’s national Gross Domestic Product (GDP). If American small businesses were a country, they’d be equivalent in GDP to Japan, which is the third largest economy in the world!
Clearly, small businesses are a major player in the national economy. But they make an even bigger impact within their own communities. According to the same American Express study, for every dollar spent at a local business, 67 cents stays in the local community. Of that 67 cents, 44 cents go to the owner and employees in the form of wages and benefits, while 23 cents are reinvested in other local businesses.
Every purchasing decision you make affects the economy in some way. Because local businesses tend to use other local vendors for their needs, the money spent there doesn’t just support one local business, but also all the others who provide them with supplies and services. And when the owner and staff live where they work, more of their wages go right back to other local businesses, creating an interconnected support network that keeps communities thriving.
Small businesses also help communities to stay more resilient. Having a smaller organization makes it easier for local businesses to adapt to economic changes — by adjusting staff, changing product offerings, or tweaking their business model. Small businesses also have more direct access to their customers and a more intimate understanding of their needs. Having a finger on the pulse of a community means always having the knowledge necessary to adapt your offerings to please your customers.
By being nimble and adaptable, small businesses are able to weather shifting economic tides. Having a healthy local business community helps establish stability for towns and cities. Every resident is more likely to flourish when small businesses are doing well!
More and more, people are becoming aware of the importance of supporting local businesses. According to a survey by the National Federation of Independent Business,2 91% of consumers believe it’s more important than ever to support small businesses, and 83% plan to do a portion of their holiday shopping each year at small businesses.
The reasons are clear. In addition to the economic benefits they provide, local businesses contribute to the character of a community. No town or neighborhood is defined by how many chain restaurants or big box stores it has. But communities become desirable places to live and visit when they have interesting, unique eateries, cafes, and boutiques.
Source : Postnet International