Small businesses have a big impact, and nowhere is that influence more evident than in their local communities. Smaller companies tend to be focused close to home, creating not only cultural change but also job opportunities in the very towns and cities where they are based.
How does a small business help stimulate job creation locally? Here are four main ways:
1) Small businesses are a driving force for employment
According to the U.S. Small Business Administration, small businesses have created almost two-thirds of this country’s net new jobs over the past fifteen years, with these businesses accounting for over half of private sector jobs. Companies don’t need to have thousands of employees to have hiring power. Collectively, smaller businesses account for a large part of all employment – including local jobs.
2) Small companies need support services
Smaller businesses generally do not have an in-house legal department, marketing division, HR professionals, and a payroll department. This means that most small companies rely on other businesses and service providers, creating jobs and economic growth.
According to Forbes, about 52% of small companies are based at home and about 22 million people are self-employed, meaning that they may be turning to surrounding businesses for help with various business tasks. This creates a huge potential for surrounding businesses and employees to offer their services to these smaller companies, which in turn creates job opportunity.
3) Smaller organizations may be pushed to look at local resources
Smaller companies generally don’t have the budgets to fly in talent from all over the world (and the legal departments to deal with moving expenses and work visas). Instead, they may to turn to local talent. In fact, some businesses establish themselves in specific cities or regions so that they can meet and recruit a highly skilled local population when it’s time to start hiring.
4) Small organizations become part of the community
Smaller companies don’t just set up shop in a community; they inevitably become part of that community. To compete, small businesses often work to stand out by getting to know individual customers and by taking part in local events and charities. Small, independent companies may lend local color and generally become a part of the neighborhood.
By taking part in local events, small organizations may be supporting local groups and companies. They may support local work-study programs and other programs that benefit both the business and community employment at large. Networking locally can also mean that local businesses turn to other local providers when it’s time to expand or when they need a service.
The next time you pass by a small business, consider the ways that it is not only contributing to local culture but also the local economy. The exciting new job opportunity that everyone starts talking about may just come from a smaller employer! And, if you are a small business owner or interested in starting a business in Lynchburg, VA, you might be interested in:
- How to Get Funding for Your New Business
- 7 Essential Local Resources for New Business Owners
- How I Opened My Business In Downtown Lynchburg
- Four Essential Web Tools for Small Business Owners
(Picture: Isabella’s Italian Trattoria in Lynchburg)