5 Ways to support small businesses
Small businesses long have been the heart and soul of local communities. There is something to be said about being on a first-name basis with a local restaurateur or another small business owner, as such familiarity often translates into exemplary service.
According to the U.S. Small Business Administration, small businesses account for 99.9 percent of companies in the country, due in large part to the broad definition of small businesses (those with fewer than 500 employees). However, the vast majority of businesses in the United States have a staff that's smaller than 20 workers, according to the Small Business & Entrepreneurship Council. These firms employ nearly 60 million workers, says the SBA.
Despite the prevalence of small businesses, fewer than 80 percent of entrepreneurial small business ventures make it beyond their first year, and only around half make it beyond five years.
Consumers who want to help their favorite small businesses survive can use the holiday season and beyond to set the course for success. Consumers can make a concerted effort to fuel this important cog in their local economic engines.
SHOP LOCAL. The concept is simple but effective. Opting to shop in local stores over larger conglomerates and franchises can help small businesses take root. Before making holiday shopping lists, visit local stores and base gift ideas on items they have in stock. Chances are those gifts will be one-of-a-kind.
PURCHASE GIFT CARDS/CERTIFICATES. All businesses have slow periods, and post-holidays is often a time when sales stagnate. Gift cards may bring new customers into local businesses who might otherwise not have patronized them, potentially creating new repeat customers.
CATER HOLIDAY MEALS AND GATHERINGS. The holiday season is chock-full of entertainment opportunities. Individuals can rely on nearby restaurants and other food and beverage businesses to cater holiday parties. Some businesses also may be willing to discount or donate food for nonprofit group activities, such as church holiday bazaars, school holiday concerts or fundraising fairs.
MENTION SMALL BUSINESSES ON SOCIAL MEDIA. The holiday season breeds excitement. Therefore, when shoppers are in local stores, they can snap pictures of products and overflowing shopping bags and post them online while praising local businesses.
THINK ABOUT SUBSCRIPTION GIFTS. Enrollment in a health club or a massage therapy service are gifts that keep on giving for the recipient, but also help ensure consistent incoming cash for the business providing the service.
When shopping this holiday season, consumers can look to the small, local businesses in their communities that help make towns and cities unique.