Small businesses are the backbone of the economy. They account for 99% of all businesses. However, they’re often at a disadvantage when marketing their products and services because they don’t have access to big budgets or large teams like larger companies do. This blog post will discuss a few exciting facts about these small business heroes that you may not know.
- Small businesses are the engine of job growth.
Despite slow economic times, small businesses continue to be the engine of job growth. According to a study by the Kauffman Foundation, over 60% of all net new jobs come from fewer than 500 employees. This is partly due to their propensity to hire more workers as they grow, whereas larger companies tend to downsize during tough times. To get more people working, we need to support small businesses.
- Small businesses are the backbone of communities.
Small businesses have a greater propensity to reinvest in their local community because they’re not as concerned about maximizing shareholder value, which means that for every $100 spent at small business retailers, 80 cents goes back into the local economy compared with just 43 cents from larger companies. This is why it’s essential to support your locals during tough
economic times – you never know who might be affected.
- Small businesses are the new face of entrepreneurship.
The days of considerable risk, big reward entrepreneurship that was popularized by larger companies like Google and Apple is no longer the only option for entrepreneurs seeking to turn their business dreams into reality.
Today there’s a growing trend towards micro-enterprises where people not only start up on shoestring budgets, but they can also scale thanks quickly to advancements in technology (smartphones, tablets, etc.) which enable them to connect with an audience anywhere at any time. As such small businesses have become more attractive than ever before as a source of employment and value creation.
- Small businesses are more innovative.
Small businesses have to be more innovative to compete with larger companies, and this often leads to them developing new products and services that can help them stand out from the crowd. A study by the University of Chicago found that small businesses are almost twice as likely as large ones to introduce a new product or service in any given year, which is good news for consumers who benefit from more excellent choices and innovation.
- Small businesses are more competitive.
Small businesses have to be good at what they do to get by, which means that startups tend to begin with better products or services than larger companies that can afford costly mistakes due to their higher margins and more significant financial resources.
- Small businesses are more sustainable.
Small businesses typically have a lower ecological footprint than their larger counterparts due to the simple fact that they use fewer resources. In addition, small businesses are often more likely to adopt green technologies and practices to reduce their environmental impact.
- Small businesses are more customer-centric.
One of the most significant advantages small businesses have over large ones is that they can provide a more personal level of service to their customers thanks to their smaller size and closer proximity. This often comes in the form of better customer care, faster response times, and more customized solutions.
Conclusion
Small businesses also play an essential role in our economy as job creators and drivers of innovation. So the next time you’re thinking about where to spend your money, consider supporting your local small businesses – not only are you helping the economy, but you might also get a better product or service in return.
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