The Benefits of Supporting Small Businesses

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They are often overlooked because of their size — but small businesses are essential for local economies! Small businesses keep our community alive. From clothing boutiques to bakeries, you are guaranteed to find a hidden gem when you shop locally.

I started to support small businesses in August of 2020 because I wanted to help business owners who had gone through many hardships during the COVID-19 pandemic.

Although we are now seeing the easing of COVID-19 restrictions, small businesses continue to struggle as they recover financially and get back to where they were off pre-pandemic.

It's my goal this semester to showcase some of my favorite small businesses in Orange County, California, and in the process remind us all about the importance of small businesses. Hopefully, this blog will spark your interest in exploring all the advantages small businesses offer. To start off, here are three reasons why you should support small businesses!

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Create More Jobs and Opportunities

DeeLux, a local thrift store in Orange, CA, is now hiring.

Small businesses play a vital role in economic development and job creation. Small businesses in California alone make up nearly half of the state’s total employees, or about 4.2 million. Despite COVID-19’s impact, businesses in California added a total of nearly 104,000 jobs. Of these, 83.9 percent were from small businesses.

As small businesses expand, the owners will need more hands-on deck. By supporting small businesses, you are helping to create to more job positions that will be filled by local employees. The community's support means a great deal to small business owners, so to show their gratitude, they often return the favor by participating in fundraisers for local residents or causes and holding other special community events.

Boost Local Economy

A street of small businesses in Old Towne Orange, a local economy in Orange, CA.(Photo by Chris Alcoran)

Small businesses that were negatively impacted by COVID-19 have a lot of catching up to do, hence why they need as many customers as possible. We can help small businesses get back on their feet by keeping our dollars local, which in turn helps local economies stay afloat.

Did you know that for every dollar spent at a small business, 67 cents stays in that local community? That means by purchasing from small businesses, you are redistributing $67 out of every $100 back into the local economy, according to American Express.

Better for the Environment

Image of a woman and her daughter buying local produce from a vendor at a Sacramento farmer's market. (Photo by Robert Course-Baker)

Small businesses are crucial to confronting global threats. Since they are local, minimum use of transportation is needed, creating less traffic and air pollution. Additionally, small businesses often buy materials from local sources, reducing the need for outsourcing from a foreign supplier.

Unsustainable consumption and production of big businesses are driving climate change, biodiversity loss and pollution — all of which are factors for economic disruption. For example, Amazon, a big business that depends on planes and trucks to ship billions of items, admittedly announced that its carbon footprint grew 19 percent, emitting nearly 61 million metric tons of carbon dioxide in 2020.

In a 2020 IBM study, 57 percent of consumers said they would their shopping habits to help reduce their environmental impact. Although this reason may not impact you immediately, it will provide a better future for our environment and generations to come.

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It can be a challenge to support small businesses — whether it is price, availability or convenience. However, the slightest support from the local community goes a long way for small businesses.

In my next post, I hope to create a fun guide that will show how you can support small businesses without breaking the bank!