With so many big companies and corporations, it's easy to forget about the little guys. You may even ask yourself "are Small Business Important?" The reality is that small businesses play a huge role in our economy and communities. Here are three reasons to support your local small businesses and all that they do for us.
1) Small Businesses account for 44% of US Economic Activity
It can be hard to remember small businesses when we are inundated by information about big corporations. But, an important news flash: small businesses make up 99.9% of all U.S. businesses according to the U.S. Small Business Association. Still not sure of that impact? Those small businesses of 500 employees or fewer account for 44% of US economic activity. That's HUGE. Without small businesses, we'd be lost. There would be fewer jobs, less economic activity, and a lot more unhappy customers. Small businesses account for more than just economic activity–they are better able to focus their energy on their customers. And, most importantly, they can pivot more quickly and easily when the economic landscape changes. According to Forbes, new businesses that intended to hire employees formed at astonishing rates in 2021 when we were experiencing a global pandemic. Big businesses often face layoffs when times get tough, and small businesses are able to become an opportunity instead.
2) 62% of New Jobs Created were from Small Businesses
Small businesses create opportunity: both in jobs and careers overall. According to the US SBA, small businesses accounted for 62% of the new jobs created between 1995-2020. To clarify, that's 12.7 million jobs created by small businesses over a 25 year span compared to the 7.9 million jobs created by larger enterprises during the same time frame. The new jobs are not ones that open up when needing to replace people who leave or retire. These jobs are creating new roles that are local. Small businesses aren't outsourcing jobs overseas, they're hiring people from their community. The opportunities offered by small business is huge--more creativity, more meaningful jobs with higher levels of satisfaction, independence and autonomy.
3) 67% of Money Spent at Small Business Stays in the Local Economy
Small businesses foster local communities and support neighborhoods that big enterprises don't. According to Business Wire, 67% of money spent at a small business stays in that local economy. That means 67 cents from every dollar spent at a small business stays in that community, through taxes, wages, and local sourcing. More than that, small businesses cater to their own communities, meeting specific needs, building community and relations. The local coffee shop offer places for communities to meet, or the local real estate agent sponsors a little league team. Small businesses hire local workers. That means when a small business pays wages, that money goes into the pockets of your neighbors. Your neighbors then go spend that money in your community at other small businesses. This cycle supports your local economy. For every ten jobs at one small business, another seven are supported in that community, according to the Small Business Economic Impact Study.
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