As a small business owner, your small business is part of the fabric of this country’s economy, and vital to its success. In fact, small-business confidence is at a record high, and small businesses are the engines of job creation in the United States.
According to the Small Business Administration (SBA), there are approximately 30.2 million small businesses in America and they employ 58.9 million people, which is why they are referred to as the “backbone” of the U.S. economy. The impact of small businesses on the U.S. economy is anything but small.
Furthermore, a large segment of the population prefers to support small businesses because they help stimulate not only the national economy but local economies by providing jobs in the community. Small businesses are also typically customer-centric and earn customer loyalty, which further strengthens local economies because when people patronize a local small business, they are basically giving money back to their community.
A successful local business typically generates substantial revenue and, subsequently, will pay higher local taxes, which is then used to help sustain the community, such as its schools, thus enriching the entire community. More than two dozen studies have been conducted about the value small businesses bring to local communities, with each showing that every single dollar spent at a local business leads to two to four times the amount of jobs, income and wealth, tax collections and charitable contributions. Additionally, 90 percent of small business owners donate money to charitable causes, while 70 percent of small business owners contribute time and money to charity.
Small local businesses require little infrastructure, compared to Big Box stores, make more efficient use of public services and have a positive effect on the environment. For example, groups of small businesses located near residential areas reduce automobile use and traffic congestion, thus resulting in better air quality and less urban sprawl. The positive impact of small businesses on not only the economy but the environment and local communities is profound.