When talking about small businesses, don’t be misled by the word “small.” Small businesses make a huge impact on our local and national economies. These businesses are defined by having less than 500 employees. Small businesses are the backbone of America, so how exactly do they benefit our local economies?
The biggest benefits of small businesses on the local economy are:
● Local jobs: Many small businesses are able to hire people who are not employed by large corporations. A boost in employment levels within a community influences many aspects of the standard-of-living. Disposable income, home foreclosure rates, and even new small business startups contribute to a higher standard-of-living.
● Keeping money in the community: Small businesses love to support other small businesses. If a business is struggling in one area, such as marketing or finance, they are more inclined to seek out another small business for their services. Small business owners also tend to participate in local organizations like holding fundraisers, sponsoring sports teams, and attending community events.
● Increased tax base: All businesses pay taxes on their income, property, and employment. These taxes get fed into the local economy to help fund schools, police departments, fire departments, etc. As more small businesses are opened, more money is generated in taxes and this continually improves community services.
● More diversity: Small businesses have to be innovative in order to stand out from larger corporations. They are able to offer unique products, services, and systems that put them above larger competition. Also, anyone with a dream and a drive can start a small business. This opens up opportunities for minorities and people from low-income areas to build their future.
The Thornton Law Firm takes pride in being a small business. We work with other small businesses to help contribute to our local economy and to help grow a strong community that people are proud of. If you’re ready to set up your small business, make sure to contact us for help that comes to you.