What Is A Small Business Or Company?
A small business or organization consists of 500 or fewer employees. Small businesses are doing it all, from freelancing to farmers' markets, small tech companies, local banks, restaurants, and cafes!
Small Businesses Benefiting the Economy
Not surprisingly enough, small businesses and startups make up almost 97% of all businesses in America, creating employment opportunities for 48% of the entire workforce. Small businesses add more value to the economy and the overall nation by being flexible and introducing innovative policies, newer methods and experimenting with newer ways to improve the functioning of a business.
Not only do small businesses contribute to innovation but also create employment opportunities for women, veterans, people of color, and other minorities in the American population. Small businesses account for 43.5% of the United States Gross Domestic Product (GDP). While small organizations and startups have provided unlimited benefits and generated a large chunk of revenue for the state, they suffered a massive hit during the Covid-19 Pandemic.
Setbacks
Unfortunately, despite playing a large role in improving the country's economy, the government does not support small businesses like it supports large corporations. They aren't eligible to receive the same tax breaks that big corporations get and neither do they get local and state incentives like production facilities or research and development. Therefore small businesses rely largely on the support of their communities.
How Small Businesses Benefit the Local Economy and Communities They Are In
Small Businesses Are Very Adaptable To Change
Since they rely solely on their customers' needs, they need to keep altering to accommodate the requirements of their customers as they rely completely on their clientele.
Add Value to the Neighborhood and Community
When small businesses get support from their local communities, they generate higher revenue, increasing the amount of tax that they pay to the government. This entitles them to more benefits for the community, such as parks, better public schools, fire departments, public health care facilities, and more.
Generate Revenue for the Local Economy
According to a survey, 2/3rd of every dollar spent on a local business finds its way to trickle back into the local economy. This is because small businesses employ locals, buy raw materials from the local stores, and bank with local banks.
End Note
Small businesses contribute to a thriving and prosperous nation by bringing each other's businesses up within their communities. They do this by improving the living standards of the people residing in their communities and adding more value to the community. Thriving communities are the building blocks of a strong economy and a prosperous nation.
There are many ways that you can support your local economy. You can start by looking for your nearest local markets and service providers and see how you can contribute. Click on Local Services Network and search for whatever service you are looking for.
