Why Small Businesses Are Crucial to Local Economies
It’s hard to believe that businesses that generate under $7.5 million per annum have such a massive effect on economies. Although the direct financial contribution is significant, it’s the other factors that play a big role in why they need to form part of every government discussion where the economy is concerned. These are some of the ways small businesses are necessary to keep the economy going.
People Have Access to Financial Independence
Those who were at the tail-end of recessions and market slumps and have lost their jobs in the process, know that job security is a myth. Working for a boss may seem like they have a bit more financial stability, but this stability is completely reliant on market conditions, the state of the economy, and more. Those who are able to tap into their own stream of income have the potential to become financially independent.
Small Businesses Have the Potential to Create Jobs
Large corporations very rarely come up and when they do, the employment process tends to happen as a one-off event. Some staff changes are expected to happen but unless a whole new division is founded, they don’t really lend to further job creation. Entrepreneurs such as Bill Busbice Jr, on the other hand, managed to create jobs for thousands of people as his small business expanded.
Local Business Stimulate Local Economies
There is nothing like seeing local businesses rally together to support one another. A typical example of this happening is street market events downtown and farmers markets that support local artists and craftspeople. If these local businesses happen to support sustainability, it means that all their products, ingredients, or materials are locally sourced. This not only has a great effect on businesses in general but also on the environment.
Small Businesses Provide the Opportunity for Creativity
Small businesses that don’t form part of an agency or franchising system have far more creative freedom than those in a corporate setup. This allows them to be more flexible in terms of new products and service creation and addressing customer satisfaction issues straight away.
Those who have previously shied away from starting their own business will be happy to know that the majority of businesses now make it through the first year. Half of these businesses make it through the next five years which is an incredibly high ratio considering the high-risk factor. Those who are passionate about what they do will inevitably reap the rewards of their labor of love.
