The importance of small business to local communities is emotionally rooted in buying and selling with friends and neighbors. The importance of small firms in rural areas and big cities also is seen in the economic benefits of shopping locally. In some towns and villages, a small business is the only type that can survive while serving a reduced population. In a big city, small businesses often offer a more diverse inventory or specialize in providing unique or personalized customer experiences. Small businesses also present new employment opportunities and serve as the building blocks of the United States' largest corporations.
Employing Local workers:
Small Business Contributes to local economies by bringing growth and innovation to the community in which the business is established. Small Business also Help stimulate economic growth by providing employment opportunities to people who may not be employable by laager corporations. Small business tend to attract talent who invent new products or implement new solutions for existing ideas. Larger business also often benefits from small business within the same local community. As many large corporation depends on small business for the completion of various business functions through outsourcing.
Adapting to Changing Climates:
Many small business also posses the ability to respond and adapt quickly to changing economic climates.
This is due to the fact that small business are often very customers- oriented and understand the needs of the community. Many Local customers remain loyal to their favorite small business in the midst of an economic crisis. This loyally means that small business are often able to stay afloat during tough times, Which can further strengthen local economies. Small business also accumulate less revenue than larger corporations. Meaning they may have less to lose in times of economic crisis.
Contributing to Local government Taxes:
When consumers patronize local small business, they are essentially giving money back to their local community. A thriving local business will generate high levels of revenue. Which means that the business will pay high taxes. Including local property taxes. This money is then used for local police and fire departments as well as schools. A Thriving small business also can improve property values through a community. Improving every homeowner’s bottom line while generating more property taxes for local governments.
The small business impact on local economy growth also takes the form of sales tax collection. Local business charge sales tax based on their location and can be the backbone of special taxation districts focused on unique projects. Such as lighting and sidewalk projects to improve historic shopping districts and attract additional customers.
Growing a Small business to a Corporation:
Small business do not always stay small. Large corporations, such as Nike and Ben and Jerry’s started off as small business and grew to become major players in the national and international marketplace. Many computers industry leaders began as ‘’tinkers.’’ Working on hand – assembled machines out of their garages. Microsoft and Amazon are prime examples of how a small business idea can change the world. Small business that grow in to large business often remains the community in which the business was first established. Having a large corporation headquarter in a community can further help provide employment and stimulate the local economy. Creating a market that favors the development of a additional small businesses.
Community – Focused political Advantages
Business with strong ties to a local community can lens a hand in community focused political actions. Business can help to fund and organize campaigns for lobbying, letter- writing and other political activities to influence legislators on issues that affect the local community. A local business can help to convince a presidential candidate to hold a campaign speech in the town , for example, by making sizable campaign contributions.
Cultivating Loyal Customers
Business with a local focus have the advantage of cultivating a loyal customers base, specially when their services are not threatened by big – box chain stores in the area. While this may not influence company growth, it ensures a certain level of financial sustainability, and helps to ensure the company maintains a positive reputation in at least of financial sustainability, and helps to ensure the co through tougher economic times, at least temporarily many maintains a positive reputation in at least one region. It may also help small businesses get
Local employment and Income:
One of the Most persona; advantages of business in the local economy is the boost in employment in the region. Employment levels influence a range of other standard of living metrics. Such as disposable income, home foreclosure rates and new small business startups: employing people in the local community can stimulate word- of mouth advertising for a company as well, assuming the company treats its employees well enough to get positive mentions. Local employment also cultivates a sense of community, which can enhance the brand of local business.
Local Tax Income:
Business pay a significant portion of all taxes in the United States, including income tax. Property tax and employment tax. Having more business in the local economy can boost tax income for local governments, bringing in more money to repair roads, develop schools improve public services.
Access to Services:
Along with the standard of living increases inherent in raising local employment, the presence of many business types can rise the standard of living further by providing a wider range of services and amenities in the local area.
In the modern world people can no longer expect large enterprises to guarantee them jobs for life. Individuals are increasingly expected to seek out their own opportunities, actively create value and behave ethically, rather than faithfully follow rules and routines set by others. In particular, today's young people need to learn to be enterprising, both when working for others and when setting up their own businesses. Being enterprising involves taking responsibility for decision making, becoming increasingly self reliant, pioneering, adventurous, daring, dynamic, progressive, opportunist, ambitious and holding your values, as well as being able to initiate ideas and see them through into action.Small businesses transform and develop communities. Entrepreneurs create ways to connect resources and growth across cultures, policy contexts, economic conditions and political situations that differ from a region to another. Its important to have small business in the market.