Economic Impact of Supporting Small Businesses
Small businesses are the backbone of communities worldwide. They drive innovation, create jobs, and foster growth. In this blog, we’re taking a closer look at the economic impact of supporting small businesses and examining the role they play in economic development.
Shopping small makes a big difference
While big businesses dominate the headlines, small businesses also have a considerable impact on the economy.
1. Job creation. Small businesses are responsible for 44% of all economic activity, functioning as an economic stabilizer for their communities. They also generate better income for community members than big box stores, funneling more money back into the community.
2. Customer service matters. When you run a small business, every interaction, sale, and review matters. This means owners put more effort into customer service, hiring locals with real knowledge of the product or service they offer and the people skills to match. This results in a better experience for customers and employees alike.
3. Reduced carbon emissions. Small businesses tend to purchase supplies and products locally, requiring less transportation. This dramatically reduces their carbon footprint.
4. Charitable contributions. Small businesses aren’t outsiders – they’re members of their community and are invested in its success. They often play a significant role in supporting local causes and organizations, strengthening the community as a whole.
5. Innovative approaches. For small businesses to stay open, they have to rise above the competition. This sink-or-swim mentality leads to innovation, inspiring business owners to come up with outside-the-box ideas for products or services.
How to find & support small businesses online
In today's digital economy, one of the best ways to support small businesses is by shopping online. With so many sites and marketplaces to choose from, shopping small has never been more convenient. Here’s how you can find and support your new favorites:
1. Use social media. Social media platforms like Instagram, Facebook, and Twitter have become invaluable tools for small businesses to showcase their products or services. Scroll through hashtags such as #SupportSmallBusiness or #ShopLocal to discover a wide array of small businesses in your area or niche. Some businesses offer online storefronts directly within social media platforms such as Instagram and TikTok. But even if you’re just window shopping, you can engage with posts, share their content, and spread the word to amplify small businesses’ reach.
2. Explore online marketplaces. Online marketplaces such as Etsy and Shopify are treasure troves of artisanal products and one-of-a-kind gifts. Browse through curated collections or use search filters to find small businesses that sell what you’re looking for. These platforms make it easier than ever to find small businesses outside of your local area and have items shipped to your door.
3. Join community forums to find hidden gems. Online forums and neighborhood Facebook groups are excellent resources for discovering small businesses and exploring new corners of your community. Share recommendations, ask for suggestions, and engage in discussions to find your new favorite spot and show small businesses some love.
4. Write reviews. Positive reviews and word-of-mouth recommendations can have a big impact on a small business's reputation and success. Take the time to leave reviews and testimonials on Google, social pages, and company websites. Your support and encouragement help small business owners keep the lights on and the goods coming.
By tapping into the power of technology, you can help small businesses across the globe give back to their communities. Interested in starting your own small business? Check out Origin’s Small Business Guide to Help you Succeed to get started today.