Why are small businesses important?

It’s a known saying, “small businesses are the backbone of the economy”, and it shows in the numbers. According to the Small Business Administration over 44% of economic activity is done through small businesses and small businesses make up 99.7% of companies with paid employees.

Small businesses range in all types of industries and is defined as “an independent business with fewer than 500 employees”. Independent business means that it is privately owned with no public holdings or external control over operations – usually these businesses are sole proprietorship companies.

What small businesses excel at

There are multiple benefits of a thriving small business sector – such as:

Investment in a local business is an investment in your local community. As money circulates within the community, it allows for neighbors to support each other and progress in neighborhood goals. Resources become more widely available, more businesses are attracted to the area, schools develop and people want to be in the neighborhood. The community becomes a place of progression, while maintaining roots of familiarity and comfort with local businesses.

Increase employment. As support for small businesses grow, the need for additional help within those business increases as well. Many workers do not fit with the idea of a big corporation. By local businesses offering a workplace that fits what certain workers need and want, small businesses fill in the gap between unemployment and employed.

Work culture creation. Within small businesses there is an opportunity to impact your employees more directly than in big corporations. Policies can be simplified and a culture of trust, passion, recognition, and fun can be created. Casual dress, flexible work schedule, dog-friendly, etc. are all examples of how we have seen start-ups and small businesses operate that attract so many.

Remarkable Service. With reliance on steady and new business due to small amounts of capital investments, small businesses can offer a more personalized and attentive experience that impresses customers, which in turn leads to lead generation and loyalty.

Ability to be nimble. Unforeseen circumstances or a quick change in direction of promotional or operational processes can be altered faster in a small business due to the minimal levels of hierarchy and red tape in the company.

Unique Offerings. Ever wander in to a boutique and find items that you have never seen before? Small businesses have the opportunity to present a niche product or service that they have become subject matter experts on because they are able to work more closely within their communities to see that void and find a way to provide it. They are more connected to the heartbeat of their neighborhoods’ needs.

Creativity. The pressure for a small business to survive is a tremendous burden. With that burden comes the ever need to be creative on how to attract new customers and how to keep current customers coming back for new items AND what they love about the company. The runway to be creative and innovative is much more as their company needs the fresh outlooks on the company and big companies can be pigeon-holed to very strict brand guidelines.

All together now

This is not to say that big companies are bad – in fact, many big corporations need small businesses in terms of buyers, suppliers, etc. It becomes a partnership that many never see on the front-end, but in turn, small businesses need other small businesses in the same way big corporations need the small businesses. We are all connected and reliant on each other to create a prosperous and thriving community.

Colleen Eakins Design, a friendly small business, as well, works hard to meet all the points above that help make small businesses places consumers want to build a relationship with.