Small businesses have a huge effect on the local economy and the economic development of an area. Today, many small businesses have faced unprecedented challenges, and yet there has been a huge increase in the number of new enterprise applications. According to the U.S. White House, in 2021 alone almost 5.4 million new companies were started. Let’s look at how these small companies affect the economy.
They Support the Local Economy
One of the most important impacts is the support of local economic development. According to LinkedIn, one of the main benefits of a small business is that it keeps money circulating in a local economy. In recent years, professionals have to come acknowledge how very important it is to keep the local wealth healthy for a number of reasons.
They Boost Environmental Sustainability
One surprising benefit is that small businesses often help to boost environmental sustainability as well. Smaller businesses are often more concerned about the local impact their activities have on the environment. These owners live in the communities in which they conduct relations so they have more of a personal investment in sustainability than the owners of big chain corporations. This affects the types of decisions they make concerning waste management and other things that would impact the environment.
They Increase Employment
When those living in a community have access to reliable employment close to home, it helps to create a stronger work ethic and increases the number of employed citizens. Commute challenges can often discourage would-be workers from taking on some work positions. When workers are employed in the same communities in which they live, it also fosters a better sense of community, which in turn has many positive influences on the area as a whole.
They Have Great Community Involvement
Community considerations have already been mentioned, but small corporations have a special opportunity to stay involved in their communities in a lot of ways. These can include celebrations, community outreach, environmental projects, and more. By staying involved in the community, many people will want to shop there, which improves the local wealth.
The impact of small companies is far-reaching on economic development. Starting your own company or helping to support small businesses is one way you can be a positive change in your communities. Get in touch with us today to learn more about how you can improve the local economy.