Small businesses are the backbone of communities, making vital contributions to local job markets, economies and neighborhoods.
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How Small Businesses Shape Communities
Small businesses are the backbone of communities, making vital contributions to local job markets, economies and neighborhoods. Below are some of the most significant ways small businesses shape communities:
Employ 47.5% of the private U.S. workforce
Younger companies create more new jobs than older ones
Enable women, minorities and other underrepresented groups to create their own jobs
Contribute to the local business tax base
Raise patronage of neighborhood restaurants, bars, cafes, etc.
Increase commercial and residential property tax values
Help grow the middle class
Adds to local flavor, sense of identity and civic pride
Boosts involvement in local organizations, politics, charitable causes, special events
Local business owners get to know regular customers, improving local spending and customer service
Brings ingenuity, creativity, competition to districts that need revitalization
Prompts the creation of Small Business Development Centers, grants, contests, coworking spaces, etc.
Creates walkable shopping districts
Shortens employee commutes
Leaves a smaller ecological footprint than shopping malls and big box stores
*Sources: U.S. Small Business Administration | National Bureau of Economic Research
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