Small businesses are often called the backbone of our economy. The government normally provides grants and loans to small business owners, and everyone wants to help small businesses in times of crisis. Let’s take a look at why locally owned companies are so important and how small businesses give back to the economy and the communities they’re in.
Money Goes to the Community
According to Better Accounting, a recent study reveals that 68% of every dollar spent at a small business funnels back into the community. This statistic shows just how wonderful these companies are for local communities. The money that stays within the community helps fund other local businesses, which provides jobs and local economic growth. This money is used for community projects, infrastructure, and much more.
Community Engagement Company
A small business is known for being a community engagement company. Because these companies thrive through the local community, they make more of an effort to engage with the community. This engagement can include things like getting to know customers, participating in community events, or taking the time to volunteer. A community engagement company lets the surrounding community know they care and strives to keep their local community happy with their products and services.
Most larger corporations have an in-depth hiring process, which can make it difficult for anyone who doesn’t have as much experience as they’d like. However, small businesses are often willing to hire people starting out in the job world. This benefit helps reduce neighborhood poverty, which helps the community immensely.
Small businesses are known for helping local communities, which also helps nationally. Over half the jobs created in the past 25 years came from local businesses, which reduces the national poverty level, reduces the national unemployment level, and helps the overall economy. Since there are so many businesses throughout the United States, the benefits often trickle up to the national level, helping the overall economy thrive.
As local businesses continue to do all of these, it boosts the overall national economy. At Activate Detroit, we want to help small businesses in the area grow and be a greater part of the community. Get in touch with us today to learn how we can help you.