Whether you have heard this term or not, there’s truth in the saying “Small Businesses are the Backbone of the Economy.” But have you ever wondered why?
Big Numbers
For statistic purposes, a small business is considered to be an enterprise of 500 or less employees. In 2016, reportedly there were 28.8 million small businesses, accounting for 99.7% of US Businesses, whereas companies are around 18,500. As of 2014, 52% of small businesses were home-based. The most important of these numbers is the fact that small businesses are providing 55% of jobs, and that’s since the 1970’s.
Why Shop Small?
Other than the fact that small businesses create jobs (2 out of 3 jobs to be precise) small business contributes to our economy. Shopping small brings growth and innovation to your community. Small business can also lend a hand to economic growth by offering jobs to those unlikely to be employed elsewhere, and attract and inspire others who are likely to, as Mariah Brown from smallbusiness.chron.com puts it, “invent new products or implement new solutions for existing ideas” (2017). This simply creates opportunities everywhere in the community.
Small businesses are also more adaptable than the medium and large-cap companies. In case of economic change or even economic crisis, it’s likely you will see a loyal following of customers. Small-businesses have a different focus for this reason: the customer. Do you think Wal-Mart cares about you? Sorry to say, they don’t. They don’t need to make you happy to survive and grow. But small businesses do and they want you to be happy with your transaction, from start to finish.
Diversity. This is incredibly important and to show you, here’s some more statistics. In 2012, 14.6% of business owners were minorities. This is up from 11.5% in 2007. That’s only an increase of 0.62% a year. That’s not much, but America is getting somewhere. And to add, only around 36% of businesses are owned by women and 9% by veterans (Hecht, 2017). This is another way that you can support small business with your purchases.
Please, Support the Little Guys (and Gals)
I know it’s seems more economical in a short-term perspective, but stop buying your cutesy $4 signs from Wal-Mart (sorry mom) or your decorations from Party City or your Halloween Costumes from Spirit. Instead, find a local craft fair. Buy that hand-knit scarf from your neighbors daughter. Support that fresh new business trying to put their product out there for the first time. Put your money into something that makes a real difference in your community!
I know from a personal standpoint, and why this is such a passion of mine to talk about, is that I’ve watched so many try to make their small business work. It’s too easy to blame it on the economy. It’s too easy to say “nobody has the money to spend.” That’s not true or these big box stores wouldn’t be around. It’s not the economy or a lack of money for spending. It’s our neighbors and our friends. Our sons and daughters. We are the support we need to grow and thrive. Even the smallest of purchases to a small business can make the biggest difference. So think about that next time you are shopping.
Help Live Peculiar and other small businesses grow in your community on Small Business Saturday on Nov. 25th. Visit http://www.livepeculiarshop.com to see what we can offer you.