Large corporations often dominate headlines when it comes to job creation. But the truth is, small businesses are the backbone of any healthy economy. Here’s why they deserve a standing ovation.
Employing Local Workers
Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. It also helps stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations.
They tend to attract talent who invent new products or implement new solutions for existing ideas. Larger businesses also often benefit from small businesses within the same local community, as many large corporations depend on small businesses for the completion of various business functions through outsourcing.
Keeps Money in the Community
Local businesses generate revenue that is taxable by the community. They might need to pay local property taxes. These funds are then used to support local schools and public services. Their sales taxes also help support projects such as sidewalks, lighting, and more. Plus, that thriving small business helps the property values in that local community, which helps homeowners and the local government.
Local businesses also have an economic impact on the community by providing goods and services to big businesses in the area. Plus, the small business owner will rely on other local businesses for its supply chain or other services.
Contribute to Local Taxes
When customers spend money on small businesses, as opposed to large corporations, they are investing in their communities through income and sales tax. The taxes they pay will:
- Support local schools
- Help improve the roads
- Allow the city to create parks and other community areas
- Fund social service programs
By shifting your spending from e-commerce giants to local businesses, you directly invest in your community’s future, ensuring vital improvements and a flourishing local economy.
Closing Thought
Much attention is paid to big companies in business news. However, there are a lot of positive impacts when it comes to small businesses and the economy.