Tuesday, July 5, 2016

Benefits of Working with Local Small Business Providers

small businessAccording to the U.S. Small Business Administration (SBA), small businesses make up roughly 99% of U.S. employer firms. This massive percentage of organizations primarily outshines larger and more sweeping companies simply with a mantra of celebrating community culture and local infrastructure. They tend to be more concerned with local issues, and are intimately familiar with the nuances of their neighborhoods. They are also more likely be the first to contribute to building up their community through volunteerism and charitable giving, knowing that local investment helps everyone further down the road. 

small business
Locally owned businesses recycle a much larger share of their revenue back into the local economy, enriching the whole community. On a social science spectrum, this works to foster self-reliance against poor economic surprises. A good example might be found in the grocery field - while Walmart profits are funneled off to Bentonville, Arkansas, your local Independent Grocer Alliance (IGA) partner places their funds in local banks to invest back into the community. They sponsor youth sports teams, and provide jobs for neighbors, all the while providing fresher and more sustainable goods for your home.

Small, local business entities also require less infrastructure, relatively speaking, making efficient use of public services. There is less of a drain on municipal resources such as sewer, power, and water that a larger company would draw from at taxpayer expense. Smaller companies maintain a level of flexibility that larger corporations cannot match due to size, allowing for speedier reactions to industry changes and market swings. This advantage parlays into getting new products to market, faster. When there exists a flexible environment, the company that has more accountability and creative wiggle room can better manage the shift and keep customer costs down. Look to Malcolm Gladwell's recent TEDtalk for an ancient comparison.

It should be noted that small businesses are not all Mom & Pop operations - far from it. The small business model has been applied to every industry from regional energy sourcing companies such as Freedom Energy Logistics to technology giants like Segway. Thinking locally has spawned a revolution in creativity, efficiency, sustainability, business ethics, and profit margins.

local business
Then there are the more substantial elements to consider. Small businesses put a greater stress on personalized experiences, where one-on-one contact between merchants and customer service is more important to achieve. On the other side of the marketing divide, most chain stores actually outsource their customer services to agents that have very little appreciation for local issues and concerns. Smaller businesses rely on establishing long term relationships with customers with the expectation of frequent and more personal meetings, thus handling inquiries more efficiently. A larger chain sees only the sale in front of them at that moment.

Obviously the world isn't such a black and white place, but placing revenue in local small business does have both immediate and long term positive effects on the community as well as the bottom line. For more information about how the local dollar improves your company's well being, contact us at Spotlight Publicity for a free consultation.