How Small Businesses Shape Communities

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:

Jobs

• 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

Revenue

• 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

Community

• 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

Innovation

• Brings ingenuity, creativity, competition to districts that need revitalization
• Prompts the creation of Small Business Development Centers, grants, contests, coworking spaces, etc.

Environment

• 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