5 small business facts you need to know

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It’s November! Somehow this time of year always seems to sneak up on us. If you’ve been out shopping lately you probably noticed the stores already have their holiday decorations front and center.

As you get ready to head out and start your holiday shopping this year please remember that small businesses are the best kind of business to support. When you purchase from a small business you’re directly helping the people living in your community and also yourself by improving your local economy instead of feeding cash into the bank account of a large corporation. Still not convinced local is the way to go? Take a look at these 5 facts about small business you need to know.

1. Small business owners love their customers more than money—really

small businesses love their customers

If you’ve ever walked into a mom-and-pop-shop you already know small business owners are in their industry because they love what they do. There is nothing like the top-notch customer service provided by the proud owner of a small establishment.

A recent study by Wells Fargo asked small business owners what they rated as the most satisfying part of their jobs. The business owners said the ability to provide good customer service was more important to them than money. Not only that but most business owners said it was almost twice as important to them as monetary rewards, proving the point that small business owners truly do love their customers more than money.

2. Small businesses outnumber big businesses 1,000 to 1

small businesses outnumber corporations 1,162 to 1

Do you know there are nearly 28 million small businesses in the US right now? And that that number is expected to grow by almost 7 million over the next few years? That’s more than 1,162 small businesses for every big corporation. It shouldn’t be hard to find one offering what you need.

Next time you’re heading to the store or calling for a professional service stop and think. Instead of going to a big-box name out of convenience try a quick scan of your town to see if a small business offers what you’re looking for. You should be able to easily find a small business near you, but if you need help you can use this free small business locator tool from the Small Business Saturday movement. It let’s you search for a small business by company name, location, or industry type.

3. Money spent at a small business stays in the local community

keep money in the community

When you buy from a small business 52-79% of the money you spend stays in your local community. For example let’s say you buy $100 worth of plants at your local garden shop. $52-79 of that will be directly reinvested in your community.

Now if you were to buy that same $100 worth of plants at a big chain store a measly $13 would be reinvested in your community. When it comes to money spent at restaurants the difference is even more pronounced. Dining at a local restaurant will keep $79 of every $100 spent in the community vs a wimpy $30 reinvestment for restaurants that are not locally owned.

4. Small businesses help grow other small businesses

small businesses help other local businesses grow

This is related to the fact above, but small businesses are way more likely to support other local businesses. They’re more likely to get their meat and produce from a local farmer, utilize a local painter to fix up their new location, bank at a local credit union, and participate in local events and fundraisers. They invest in their employees and neighbors through salaries and benefits. It’s like loop. The more you shop locally, the more money that shop has to invest in other local businesses and the more successful everyone in the area becomes.

5. Small businesses aren’t always so small

small businesses aren't always so small

When we think of a small business most of the time we picture a little shop with 5-10 dedicated employees working there. A lot of the time that’s an accurate picture; 70% of small businesses are run by 1 person. However the Small Business Administration defines a small business as a company with 1-499 employees. That means small, local businesses are helping to employ a large chunk of the people in your community.

Bench Craft started with just 2 people back in 1982. Through a lot of hard work by those founders and the people who joined them along the way, 33 years after opening Bench Craft now provides jobs, full benefits, and health insurance to 300+ people in the community. And we’re not an exceptionally rare example.

That’s the whole point; build a small business, work hard, and grow it. Make the commitment to supporting your  local small businesses by shopping there whenever possible!