The Economical Impact of Small Businesses
Small businesses are a valuable asset to the local economy. Below are some of the benefits discussed.
1- Interactive community
Small business owners are an integral part of the communities in which they operate. Local entrepreneurs tend to be involved in the community such as sponsoring local festivities, donating to charities, organizing events etc. Interactive events generate taxes for the economy as well as revenue for the retailers.
2- Environmental benefits
Small businesses also demonstrate environmental benefits. For example, some small stores reduce automobile use and traffic congestion as they are located near residential areas, resulting in better air quality and less urbanization. Reduced air pollution from vehicles encourage people to protect ecologically sensitive land and save money.
3- Increase in tax return
When local residents shop at stores located in their communities, the revenue earned stays within the economy. This generates taxes for the government to spend on development purposes which improves the economy. Likewise, a small business tends to buy locally produced supplies that help bring in more money for economic development.
4- Local employment
Small businesses create employment opportunities for the economy. Jobs generate an income flow in the economy and also generates taxes for the government. Rather than having to travel to another city for jobs, employees can work closer at home. Supporting small businesses also keeps a community vibrant by creating ample opportunities for workers to shop at other local businesses.
Small businesses are the product of the owners’ own entrepreneurial spirit. By starting a small business, the entrepreneur is taking charge of his or her future. Also, entrepreneurship fuels a country’s economic innovation and prosperity.
6- Innovation and Competition
A small business, like any other business, needs to stand out from the crowd in order to survive in the industry. They must serve a legitimate need in the community and do it better than their competitors. Having multiple small businesses all striving and competing to be unique, innovative and better can result in a healthy marketplace and well-served consumers.
7- Less infrastructure
As compared to shopping malls and giant chain stores, local businesses tend to require few public services and less infrastructure. The process of opening a small business is less demanding on the city as compared to what a department store requires. Less infrastructure, means low maintenance and that results in better urban planning.
These are just a few points explaining the impact of small businesses on an economy. Supporting small businesses isn’t only about having an easy shopping experience. It is also about contributing positively to the community and the economy as a whole.