Six reasons to love and support small businesses
Depending on the industry, a small business can range anywhere from 1-1,500 employees. While the exact definition for small business is different everywhere you look, generally, a small business is a privately owned partnership, corporation, or sole proprietorship that receives less revenue than its larger competitors. Many may not know that 99.7% of all firms in the United States are small businesses. As the number of privately-owned firms in the country continues to grow, it is safe to say that small business is big for the United States’ economy. Below are a few reasons why you should consider supporting small businesses.
1 Small business owners are hard workers!
Long hours feel pretty normal to entrepreneurs. This is likely because many business owners wear multiple hats within their companies. From handling aspects of customer service to helping with bookkeeping and inventory, the hours spent on all the components and details it takes to successfully operate a business can stack up. Many business owners have been cited saying they work 50 hours or more a week.
2. The heart of the American economy belongs to small businesses
Small firms play a vital role in the United States’ economy. According to the Small Business Administration, small businesses create more than 50% of the non-farm gross domestic product, 97% of exports, and 29% of export value.
3. Small Businesses create jobs
Small businesses create work opportunities in the communities in which they operate. The average small firm employs around 10 people, and within the last 18 years, small businesses created 9.6 million new jobs.
4. Small Business entrepreneurs are bold and are not afraid to take risks
The majority of entrepreneurs are self-financed, often reaching into their savings accounts, home equity, 401k, stocks, or use credit cards to fund their startups. This is because the lending market is tight for small businesses. Most people are required to sign a personal guarantee to qualify for a loan. While this type of “digging deep into your pockets” financing can be risky, it is what makes small businesses self-reliant. Most who launch a small business are passionate, believe in their vision, and are willing to do whatever it takes to make their dreams a reality.
5. Relationships are vital in small business
Many small business owners know first-hand how hard it is to get up and running and are more than happy to help a fellow entrepreneur when they can. Aside from the great feeling of performing an act of kindness, networking with fellow business owners is vital in industries or communities where there may be a small market. Since fewer administrative layers are standing between the owner and customer, many people prefer to shop at small businesses when possible. Smaller organizations take a genuine interest in the needs of their customers and tend to build strong relationships with their local communities.
6. Small businesses have the best products
Large retailers and online corporations may take pride in their vast inventories, but the majority of consumers actually prefer the selection at small businesses. According to UPS and ComScore, 61% of customers favor small businesses due to their unique product assortment. Likewise, 26% feel small retailers have a better selection than big businesses. Small businesses generally specialize in their area of expertise and offer a deeper knowledge of products than large merchants. Luckily, more people are starting to see the benefit of entrepreneurship and are deciding to go into business for themselves. Great ventures come from small beginnings, and when ‘Main Street’ prospers, the entire community and economy benefits. So don’t hesitate to “shop small,” it provides an amazing opportunity to make a difference.