It’s Small Business Saturday, a day when we all celebrate small businesses and all they do for us. Supporting small businesses has always been a part of our mission. Part of this is due to Bramble Berry’s history as a small business, but there are a lot of reasons to support small businesses. They’re good for individuals, communities, and the economy. Check out some reasons to support small businesses all year round.
Small businesses are innovative
Because small businesses often have to exist in more competitive markets, they tend to innovate more than some of their larger competitors. New products and processes are important in maintaining consumer interest, especially when introducing new products or brands. Large companies with diverse product lines and well-known brands already have a big advantage.
Small businesses are usually pretty adaptable compared to large businesses, which means they’re better able to change processes and product lines to adapt to changing conditions in the market. That means that many innovative business processes come from small businesses and are later adopted or purchased by larger companies.
Superior customer service
Have you ever ordered from a small business online and been pleasantly surprised by a hand-signed note or even a small gift? This is something that’s difficult for large businesses to do because increasing shareholder profits require them to operate as efficiently as possible.
Because small businesses are often privately owned, they don’t have to sacrifice product or service quality to make their operation more efficient. In fact, for some small businesses, this personal touch becomes an important differentiating factor for their brand.
It’s not just little touches to the packing of your order, either. Small businesses often offer better customer service overall than larger businesses.
Small businesses support local economies
Purchasing from small businesses locally helps to funnel more of your dollar into your own community. A part of your spending is used to pay your neighbors for their work, and those folks go on to spend a portion of those dollars in your community as well. Small businesses are the backbone of thriving local economies.
It’s not just keeping payroll local, either. Small businesses pay taxes in the areas where they operate, while large businesses often receive tax breaks. Tax dollars are then invested in the areas where you live, funding programs like parks, schools, and more.
Small businesses create more jobs
Because small businesses can’t take advantage of economies of scale, they tend to create more jobs. They usually need more staff per unit of product created, and that means more jobs in your local community.
According to the US Small Business Administration’s Office of Advocacy, small businesses have generated 2 out of every 3 jobs added to the economy over the last 25 years.
Those jobs benefit your local community, but they also benefit the economy as a whole. Who doesn’t love job creation?
They give back to the community
Because small businesses rely at least in part on the communities where they’re located, it makes sense that they give back to those communities. These businesses benefit from healthy, functional communities, regardless of whether they’re a brick and mortar store, and ecommerce business, or a mix of both.
It may not seem as obvious that small businesses give more back to their communities than big businesses do, despite large and highly publicized donations.
According to SCORE, an organization that provides mentoring to small business owners, 75% of small business owners donate an average of 6% of their profits to charitable organizations annually. In comparison, large businesses may donate more overall, but it typically only accounts for 1%-3% of their profits. That means that in general, shopping with small businesses sends more of your dollars to organizations that do good within our community.
Small businesses provide places to socialize
Small businesses that have brick and mortar locations offer places for local residents to socialize. Whether it’s a restaurant or brewery with a music venue, or a bookstore with a seating area, these places let neighbors meet and socialize, strengthening community bonds.
Even retail stores can do this. Yarn stores that offer knitting classes, food shops that provide cooking classes and demonstrations, there’s no end to the variety of social opportunities that small businesses can provide.
Some large companies do this as well, but small businesses definitely do it more. Their priority is not always getting people in and out the door as quickly as possible. Offering social spaces brings people in to purchase products, and classes help potential customers learn how to use the products that the business sells. It’s a marketing strategy that’s good for the business and the community at the same time.
They create vibrant neighborhoods
Small businesses with brick and mortar locations also add character and diversity to neighborhoods. They tend to increase walkability because people want to be able to walk to those locations, and they also often employ locals.
Walkability reduces traffic in neighborhoods and contributes to the overall well-being of people who live and work there.
The individual character of each small business also contributes to the personality of the neighborhood, makes people more likely to move there, and overall helps to prevent sprawl. Our urban neighborhoods are important sources of economic growth and culture, and small businesses keep them thriving.
Small businesses contribute to product diversity
Have you ever had a specific favorite product that was only available from a small business? A hand-bound journal, a specific kind of jewelry, or a particular perfume? Because large business use machines to create products in order to take advantage of economies of scale, most of your handmade products come from small businesses.
Small businesses introduce and maintain product diversity in various markets, giving consumers more choice. More choice in the market gives consumers more power. They can help decide what thrives, and where their dollars go. This is at the heart of the saying, “vote with your dollar.”
Greater product diversity also benefits the markets. It fuels competition which helps to promote good pricing and innovation.
Small businesses help retain handcrafts and traditional skills
Because handcrafted products typically come from small businesses, many small businesses help to retain traditional skills and keep handcrafts and folk arts alive. This includes soap making, but also extends to cooking, basketry, clothing, and more. Even a hand-painted sign business in your city helps to keep skills and traditions alive.
In an age of mechanization and intense price competition, traditional skills and folk arts are in danger of dying out. Buying handcrafted goods makes those skills relevant in the market, making learning and using them worthwhile. The more people that learn these skills, the more of them we keep.
Those skills aren’t just important for making high quality, unique products. They’re also an important part of cultures all over the world.
How you can support small businesses
So now we know why you should support small businesses, but how do we do it? It might come as a surprise that shopping at a small business isn’t the only way.
- Shop small, shop local: Spending money with small businesses is the most direct way to support small businesses, and spending money locally is great too.
- Leave reviews: Leaving reviews on websites and especially on Google business pages is a wonderful way to support small businesses that costs nothing but a few minutes of your time.
- Word of mouth: For many small businesses, word of mouth is their most effective marketing. Recommend a small business that you love to friends and family.
- Buy gift certificates: Buying a gift certificate for a friend or family member is a great way to help a small business out and introduce someone to a business you love.
- Follow them on social media: Follow your favorite small businesses on social media to increase their visibility. Go ahead and give them some likes and shares while you’re at it.
Remember, supporting small business is important during the gift giving season and all year round. While it’s often easier to order from large companies like Amazon, remember that small businesses often have amazing product quality and customer service, and that supporting them helps enrich communities.
You can find small businesses creating incredible soap and personal care products on Instagram under the #BrambleOn tag. If you own a small soap business, tag your posts with #BrambleOn on Instagram to join our community!
