5 Ways Your Small Business Can Support Your Community

There's a lot of benefit to being a favorite local joint.

According to County Business Patterns (via the U.S. Census), in 2020 there were 7,977,623 small businesses in the United States. And these are just the businesses that have employees (the Small Business Administration defines a small business as one with fewer than 500), and doesn't account for all the self-employed entrepreneurs in the country.

But if you're planning to start your own business, you might not be focusing on the national implications of your work. It might sound cliché, but small businesses really are the backbone of the American economy. Your business is capable of having a big impact close to home -- in your local community. Here's how your business can do more good than just supporting you financially.

1. Providing local jobs

This is one of the most concrete and immediately visible ways starting a business can help your community. If you're planning to start the kind of venture that will require staff besides just you, you'll be bringing employment opportunities to your town. Helping to reduce your local unemployment figures can have a huge impact, especially if you live in a small town. You can also create a ripple effect of new businesses. For example, if you open a successful small restaurant in a downtown area, you'll likely see other entrepreneurs capitalize on that space by opening shops or offering services in the same area.

2. Revitalizing downtown areas

If you've ever wandered through a downtown space bustling with commerce, you've likely noticed how many shops, restaurants, and the like operate out of old buildings. The fact that small businesses can more easily set up shop in a smaller existing space, rather than needing new construction or development of a green space, is a huge culture and environmental boon to your community. It can be wonderful to see beautiful historic buildings that once stood empty now humming with new life.

3. Keeping money local

By opening a small business in your community, you'll be helping to keep more money in your area, where it can do a lot of good. Not only will the local taxes you pay go right back into schools, parks, and services offered by the community, but you'll also spur other residents to spend some of their dollars on Main Street, instead of always at the chain businesses right off the interstate.

You'll also be giving other businesses the chance to use your services or buy your products (and vice versa), in another iteration of that ripple effect I mentioned above. Need to market your coffee shop? Why not hire the small marketing agency just around the corner? After all, just like you, they're tuned into the wants and needs of the community and can likely do a great job of expanding your customer base.

4. Giving back to nonprofits

I had more than a decade of a career in small nonprofits, and have presided over many events and initiatives that were reliant on involvement (and money) from local businesses. Small business owners sit on nonprofit boards, they provide invaluable input on local matters, and they are often willing to donate money, products, and services for the betterment of nonprofit fundraising and operations. Opening a small business and being willing to give back can be a great way to make a major positive impact on local entities that operate for the benefit of your community, like museums and libraries.

5. Adding local color

If you open a business that caters to the public at large (like a funky cafe or local shop), you'll get to contribute to the flavor of your community. I can't think of anything cooler than watching your business grow due to word of mouth about the fun experience and interesting products you provide. Your establishment may even someday be the subject of someone's story about the delightful trip they took to your town, where they bought a coffee at a cute little bakery that had the most amazing gluten-free baked goods they've ever tasted, on their way to do a little shopping or tour the county history museum. Have you ever noticed how chain stores often make unique towns all look the same? Your business can actively work against this.

If you want to start a small business, consider the positive impacts your new venture could have on the place you love: your community.