Top 5 Reasons to Support Small Businesses

by Sara Gonia


Top 5 Reasons to Support Small Businesses

In December 2022, the National Federation of Independent Business (NFIB) surveyed small business owners to gauge the impact of COVID-19 on their businesses. Over 450 responses were collected, revealing that 31% of small business owners believe that economic conditions in their local areas have returned to pre-COVID levels.

Despite this positive development, many small businesses are facing challenges such as inflation and staff shortages. The survey found that 46% of small businesses had to raise their selling prices due to increasing inventory and supply costs, while 20% reported significant staff shortages. This indicates that while local businesses are on the path to recovery, they are still navigating through uncertain economic conditions.

Small businesses play a crucial role in the local economy and communities. Consumers should support small businesses so they can, in turn, revitalize local communities. Here are the top 5 reasons why advocating for small businesses is essential for local communities:

Personalized Customer Service

Small businesses don’t have the big clientele that major retailers earn with ease. This means every customer that walks in is important. Small business owners do everything to satisfy their customers and are more available for product information and questions.

Local businesses are more likely to learn about individual customers and their preferences, which helps retain that core customer base. Small business owners can even develop real relationships with their most frequent shoppers, even knowing their names! Small businesses rely on loyal customers to stay afloat, which is why they are dedicated to creating a personalized experience for their customers.

Innovative, Competitive Growth

Small businesses compete against major retailers like Walmart and Amazon for attention, so they must find ways to stand out. This is a positive for small businesses; they can fill product niches that major stores can’t satisfy and use creative marketing methods to attract customers. Digital e-commerce has become a vital solution for small businesses. Stores use special online promotions and sales to entice customers to purchase their products on their websites.

For example, a local store selling locally produced olive oil sets up a sale on its website for one free bottle of oil with the purchase of $30 and over. People love free things, which also encourages them to check out the store’s other offerings. This helps turn small businesses into unique storefronts that can attract new customers through reputation alone.

open sign for business

New Job Creation

In a study by the Small Business Administration, almost half of the U.S. private workforce is employed by small businesses. While major retailers offer stable employment and benefits, some job seekers find huge stores potentially overwhelming or stressful to work for.

Job seekers like being employed by smaller businesses. Joe knows working for the retail grocery store will earn him good health insurance, but he loves the atmosphere of the local general store and would prefer to work there if he could. Job seekers prefer working for smaller places that value their hard work and dedication to the job compared to just being one of the pack for the big companies, even if small businesses can’t offer the same incentives.

Resparks The Local Economy

Giant storefronts are opening new locations every year, which threatens local businesses. While it’s easier and more convenient for community members to shop at the major retailers, local communities need small businesses to help fund their areas. Sales tax revenue is generated through these businesses, which is then reinvested into the community.

Small businesses also help with tourism. Word of mouth about a local business drives people to visit the community, potentially becoming a vibrant shopping destination for future visitors. Small businesses appreciate the support their communities give them…

Participation In Local Community Opportunities

…and they generously give it right back. Local businesses are a staple in community fundraisers and causes. They tend to be more generous in donations than the major retailers are. They will also sponsor other special events like local fairs and sporting events. While it may cost a small business to set up a booth at a fair or pay for advertising at a local ball game, it’s worth the exposure and appreciation of the local community.

They’ll even generate support for other local businesses and organizations and their competitors as a show of goodwill. Although they may be rivals in the business world, small businesses also understand each other’s struggles and will help each other when they can. When community members make purchases at a local small business, they are showing their appreciation for small businesses’ contributions to their community.


FreightCenter Supports Small Businesses. Are You?

Small businesses do more than financially support their local communities; their efforts trickle down into the national economy. Without our local businesses, we would have to rely solely on major retailers, which isn’t always the best for sustaining communities nationwide. Supporting small businesses ensures economic growth, which they will reciprocate twofold through their own participation and outreach.

FreightCenter has a lot of love for small businesses. They were some of our first customers when we began as a small business in 1998, and are still some of our most loyal customers today. We understand the need to support small businesses, which is why we work hard to assist with their shipping needs. If you’re considering starting a small business and need help shipping your products to your customers, we have you covered. Try our free online quote tool or call (800) 716-7608 to get help with your small business shipping!


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