In the past months, many smaller businesses have had to temporarily close down due to the Corona crisis. As stores are opening up again, we have the opportunity to give some extra love and support to the local small companies that make our lives better every day. Because without small businesses, we would miss out on a lot of amazing benefits. Read all the reasons why supporting them is so important here.
1. They are important for the economy
Small businesses might be limited in size, but their importance to developed and developing economies is huge. According to the World Trade Organization, small-and medium-sized enterprises represent over 90 percent of the business population, 60-70% of employment, and 55% of GDP in developed economies. By supporting a small business, you’re also supporting the local community it's located in. Spending your money there helps to stimulate its local economy.
2. They provide jobs
Micro-, small and medium-sized enterprises are responsible for more than two-thirds of all jobs worldwide. They also account for the majority of new job creation. A good thing to keep in mind this small business saturday 😊
3. They support the community
Not only do local businesses help members of the community with more job opportunities, they tend to support other local businesses too. By purchasing supplies or materials for their own enterprise locally, they keep more of the money in their community.
The support of the community works both ways when it comes to buying from and owning a small business. At CANO, we keep our whole production in Mexico in order to create the most social impact as a brand. All individual parts come from other small businesses. For example, we source our shoeboxes and laces from other small businesses. Every purchase made from these companies helps the owner provide wages for their workers and put food on the table for their families.
4. They contribute to community identity
Small businesses also contribute to the identity of the local community where they operate. Since many small-business owners are very grateful for the support of the community, they often enjoy returning the favor by participating in community events and donating to local nonprofits. It's all about being an active member in the community and improving the community on different levels.
You want to shop and live near places that actually mean things to people; places that have a real effect on communities. You can feel when someone really cares about the neighborhood they’re running a business in.
Sandeep Salter, co-founder Picture Room and Goods for the Study
5. They provide authenticity, originality, and quality
Small businesses have the most impact on our local communities, in terms of enriching our neighborhoods by providing unique products. Most small businesses are run by people, and not by boards or stakeholders. It’s truly a reflection of the owner itself, so you get an original product that’s carefully made with a detailed eye for quality.
Everyone knows the big fashion retailers and supermarkets, but they do not give that same amount of care and do not give off a community character. In a world that’s becoming increasingly homogenized, it's the quaint coffee shops, family-owned bakeries, and vibrant florists that give a place that unique personality.
This difference between multinationals and smaller companies translates into the production process as well. The bigger the production, the harder it gets to do individual quality checks. Large business owners lose control over what happens with mass productions as the supply chain gets larger and more complex. In contrast, smaller production gives more clarity about the origin of the product, and who the people are who made it.
6. They drive innovation
Since many small businesses have to compete with larger competitors, they are constantly working on adding new products and giving new benefits to their customers. It encourages small companies to innovate and provide unique products in order to keep customers coming back. At the same time, smaller businesses are faster to keep up with changing customer demands. So oftentimes, independent, small businesses is where innovation happens, creating and offering new options.
7. They give excellent, personalized customer service
And lastly, a bonus for you as a consumer... Small businesses treasure all their customer relationships and rely on positive interactions to spread the word about their business. This is why most small businesses take time for personal and friendly customer service. People working at smaller businesses are interested in getting to know their beloved customers, who are supporting the community they serve. Most owners will be eager to answer your questions and think with you to find the best product or service for you. You, as a customer, are supporting their dream. So small businesses want every single customer to have a positive experience every time.
What is your favorite thing about small businesses? Or are you a small business owner? Share your experiences in the comments!
Written by Jessica Teeuw