The Importance Of Supporting Local Business And The Impact On Local Economy

You have probably heard the saying “small business is the backbone of our economy” a number times. President Obama in his August 2010 speech to small business owners in Seattle cited that small businesses represent nearly two out of three new jobs in America. He believes that small businesses play a vital role in stimulating the economy and growing more sustainable jobs.

Small businesses do contribute a lot to the local economy. Local business owners know their communities better than big corporations and franchises. Interesting and novel products that have a significant tie to the region are bought more readily from local merchants than everyday merchandise.

They sometimes have a worldwide audience for their unique products and generate revenue that goes back to the community. Local businesses are more responsive to local charitable organizations and support local civic organizations more than big corporations.

There are some very good reasons why local business is important to the local economy. These are:

Economic Growth

Businesses that establish themselves with the community are ten times more likely to grow than businesses who decide not to root themselves with the community. People are more apt to patronize local businesses that support their local community than big corporate stores, especially if they create incentives to buy locally.

Community Connections

There is a definite community connection with local businesses. It is those connections that solidify relationships and create a cohesion that isn’t easily broken. The impact on the local community when a beloved restaurant or store closes is devastating until another business takes its place. The loss of revenue and jobs is not offset by big chain stores according to some studies done by the Massachusetts of Technology.

Array of Supporting Businesses and Services

The community connections make possible the use of supporting businesses and services. Local businesses are more apt to hire local carpenters, architects, designers and other service providers to create their unique business attributes. Big box and chain stores however have to adhere to a uniform style and design for their franchise.

Sustainability of Local Environment and Land Use

The impact of the chain stores once they decide to leave is devastating to the local economy. It is important to note here that since local business often uses local materials they are more economically friendly to the environment. Land use definitely becomes an issue as well. Big box stores cause massive headaches to local communities when they renege on paying taxes and abandon their properties.

Increased Revenue

It is a well known fact that big box stores and chains decrease revenue for state and local budgets by paying their employees minimum wages. Big box stores are notorious for taking support and revenue away from small businesses and forcing them to close. The perceived benefits of having a big box store are never really realized either by the local or state governments.

Small local businesses on the other hand help drive business to their communities. Their revenue, instead of going to corporate coffers, goes directly to the local community and the state. The dismal record of big box and chain stores have shown that small local businesses are actually driving more revenue to the community than big box and chain stores.

Anthony is an avid blogger from Tulsa, Oklahoma who is passionate about encouraging support for local businesses for all communities while working with the Gorospe & Smith Tulsa Personal Injury Attorney Law Firm in his own community.