How Supporting Small Businesses Helps Local Economies

Picture the cheery jingle of that bell hanging off the door of your favorite local craft shop, the grumpy chihuahua in the window of the tailor down the street, and the name of the hostess who knows your favorite table at your go-to restaurant.

These small businesses don’t just strengthen our local community, they’re often considered the backbone of our entire economy. And it’s up to us to support them! Driving growth, fostering innovation, and building stronger bonds, small businesses account for 99.9% of all U.S. businesses, according to Forbes. At Hillcrest Bank, we support small business and encourage you to, too. Here’s why:

Economic Growth and Job Creation

Small businesses are powerhouses of job creation and economic growth. They employ nearly half of the private workforce in the United States, according to the Small Business Administration. This significant contribution underscores their vital role in supporting local economies. When you support a small business, you are directly contributing to job creation and economic stability in your community.

Community Connections and Local Identity

Small businesses do more than just operate within communities—they become an integral part of them. Supporting small businesses is more than just making a purchase—it's an investment in our community's future. These businesses prioritize giving back to their local communities, whether through donations, sponsorships, or encouraging local shopping. This helps build strong bonds and fosters a sense of local identity.

Why Should You Support Small Businesses?

Supporting small businesses has a ripple effect that benefits everyone. Here are some key reasons why consumers should choose to shop locally:

1. Economic Impact: When you spend money at a local business, a significant portion of that money stays within the community. Every dollar you spend has a greater local impact, circulating within it to employ more people and fund more local businesses. When you shop local, you’re not only supporting that business, but the entire small business community.
2. Personalized Service: Cue the Cheers theme song, “Where everybody knows your name!”  Small businesses often provide a more personalized and unique shopping experience. They know their customers by name and can offer tailored recommendations and services. Shopping at small businesses is a feel-good experience.
3. Innovation and Diversity: Small businesses bring fresh ideas and diverse products to the marketplace. Oftentimes more agile than larger businesses, they are at the forefront of innovation, quickly adapting to emerging trends and customer demands.
4. Community Support: By supporting small businesses, you are helping to build a stronger, more resilient community. A US Chamber survey showed that 70% of small businesses encouraged employees to shop at local small businesses, 66% donated to local charities, and 64% sponsored or donated goods/services to local events.
5. Unique Products: When you shop local, you’re more likely to find unique goods. These one-of-a-kind items can help you show off your personal style and make for great gifts. Next time you make your online shopping list, consider what items you could find locally, instead.

Supporting small businesses is not just about helping individual entrepreneurs; it's about investing in the future of our communities. By choosing to shop locally, we contribute to economic growth, job creation, innovation, and the strengthening of community ties. At Hillcrest Bank, we are proud to support our communities by supporting small business. Join us in supporting small business during Small Business Week, holidays, and every week in between!