Small and independent businesses have always been an integral part of boosting the growth of any country. It helps in expanding the economy and providing jobs, but these companies are also facing financial losses. Stepping out into the world on your own is very hard and daunting and especially when the corporate world always gets a larger share. It is now more important than anything else to support the local businesses and companies to help them go higher.
How are big corporations destroying the economy, lives, and the environment?
According to reports and studies conducted, it has come into notice that small businesses always deliver better customer service than large companies. When a company is growing, it means that they have a better relationship with the customer. Hence they understand the requirements and expectations of the customers better as compared to big corporations.
Though big corporations are profitable, small businesses are better at building the economy or creating job opportunities. Kauffman Foundation published their research reports in 2010 that mentioned that almost a hundred percent of job growth happens through new companies. That is why older businesses and bigger businesses destroy jobs and, the new small ones create jobs.
Many communities try to bring outside firms, big factories, but they do not trigger long-term economic growth even though it may seem that short-term employment gains are taking place. Another severe side effect of big corporations is that it does not affect innovation whatsoever. They rarely do anything new. Let us take the example of General Motors. All of its successful car lines are entrepreneurs driven, which were eventually under General Motors. But the company in itself has been able to create only one internal carline in its history of 105 years. This line was known as the “Saturn line” but, it failed.
Moreover, there are examples to show that big corporations have always caused recessions and have drained national treasuries. Jay Cook’s bank failed in 1873, after which Henry Clews bank went down as well. That depression lasted till 1880.
How are small businesses helping the economy and creating a self-sustaining society?
Small businesses can contemplate as the savior of modern capitalism. These are some of the most important influences which give economic growth because they create around 60 to 80% of new jobs annually. When any person starts a small business by becoming an entrepreneur, there is already one less person seeking jobs. They help in making the market more competitive. And then they hire more people and create job opportunities.
Since small businesses operate locally, they hire local people and are more flexible. Most small business owners begin as owners of their own company and work hard because they know the struggle of starting from the bottom. They have lower overhead costs and are self-sustainable and self-reliant.
11 benefits of subsidising local and independent businesses:
- Supporting local businesses can benefit the environment because they have less carbon footprint than large corporations.
- Shopping locally will always help you in getting unique products that are not mass-produced. The local market is a hub of creative makers with incredible skills.
- When you support the local businesses, it means you are helping your local economy because most of the money earned by them will stay in the community.
- Local businesses are more accountable to their communities and, they care for your well-being and try to meet your expectations because they know what is at stake. At big companies, you will call a number and get transferred multiple times, and put on hold at the end. If you are lucky, you will get to talk to a customer executive. There is no concern that the company might lose you as a customer.
But for local businesses, there is a direct connection between the owner and every employee working for them. That leads to a more personalised approach to problems.
- Choosing to help a local business is an act of respect that shows that you acknowledge their risks and challenges and, it is a satisfying feeling in itself.
- You are supporting innovation and uniqueness when you are supporting local, independent businesses. Because most of the big corporations are identical and they offer similar types of products. There is no sense of innovation and uniqueness. Small businesses help to bring that excellent essence.
- Supporting local businesses will help to introduce a spark of healthy competition. And encourage small business to innovate, and add unique products which are not in the big stores.
- Choosing local farmers to buy products and local places to eat means getting access to chemical-free fruits and vegetables, fresh eggs, and dairy from grass-fed cows. You are choosing the healthier option and also supporting small businesses.
- The unique goods and services provided by local businesses can lure tourists to your community and, in turn, will boost the local economy.
- Mostly local and small businesses are set up in a town center or village center, to reduce congestion and pollution and, it is much better than out-of-town shopping malls.
- By supporting local business, the decision is taken by someone who lives in the community and will care about the impact of the decision.
So it is pretty well established how important it is to support the local businesses and how beneficial it can be. So try to contribute towards this good cause as much as you can.