As the government does its best to curb the spread of coronavirus, unfortunately, less foot traffic and, in turn, sales are being produced in smaller businesses. There are things you can do to prevent that, however! You can buy directly from online shops, like Etsy, or shop in person as safely as you can. Today, we will be looking at reasons why small businesses are good for the community.
Innovative and competitive
According to a press release from the U.S. Small Business Administration Office of Advocacy, small businesses drive the United States’ innovation and competitiveness, make up almost ⅔ of the net new jobs in the country and account for 44% of the United States’ economic activity. They also create more patents than bigger businesses do per employee.
Because they have to constantly prove themselves in their market, smaller businesses are more innovative than big businesses. They don’t have the big groups of customers that bigger companies do, so they have to prove that their marketable product serves a need that is necessitated within the community. This leads to a healthier economy because there’s always a competitive air within the markets.
Throughout 2020, added 1.6 million net new jobs, and people who worked at small companies made up 47.1% of the United States workforce, which is almost half of the private workforce in the United States. When you look at the community that you live in, most likely, the number of people working in small businesses would almost completely outnumber the bigger businesses.
It’s a symbiotic relationship between small businesses and the communities that house them. They need each other. Neither can survive without the other.
Diversity within the Community
Small businesses provide myriad opportunities for people of different backgrounds, like women or other minority groups. According to the U.S. Senate Committee on Small Businesses & Entrepreneurship, over the past two decades, women-owned businesses have been the fastest-growing segment in the United States economy.
Women-owned businesses are currently growing at twice the rate of other businesses. They generated $1.9 trillion in annual revenue during the height of the recession. There are almost 4 million minority-owned businesses in the United States alone, accounting for nearly $600 billion in yearly revenue.
These are just a few of the many reasons why you should consider supporting small businesses in your community.