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Infographic: 5 ways local businesses can make a positive community impact (PDF download)
Local businesses bring diversity and charm to their community blocks, but there's more to them than that. Each local coffee shop, grocery store, bank, and other business brings not only identity and personality to their community, but also practical benefits such as economic and charitable contributions. Local businesses match the values and characteristics of their communities and give back to them as they grow and succeed.
Give back to the community
A common way that a local business can make a positive community impact is through community involvement. Local businesses and their communities rely on each other for success, and businesses can encourage a good relationship with their communities by giving back.
Giving back can take various forms. One way is to run a charity drive and find an organization or nonprofit to partner with to raise funds for a local cause. Some businesses lend their time, skills, and space to their community by leading or participating in community development initiatives. For example, an employee of a local business might give a presentation to high school students about career paths in their field, or a team from your business might oversee the development of a community garden.
Create a unique community identity
A street block with local businesses has much greater cultural value than one with large chain stores. Each small business brings a measure of unique character to the community, and long-established local businesses eventually become a part of the community's identity, history, and culture.
Unlike large chain businesses, small business owners are members of the community and, as such, form more meaningful relationships with their customers. Communities take pride in their unique culture and identity, and they appreciate local businesses that they feel personally invested in as customers and employees. For example, in a survey, 32% of workers said that "feeling like a family" was the best part of working for a small business and that their happiness is somewhat or very important to their employer.
Contribute to the community’s economic health
Local businesses benefit their communities' economic health in a few different ways. As a business becomes more successful and profitable, this success is recycled back into the local economy. And because local businesses pay local taxes, a portion of their revenue goes directly back into the community.
Instead of sourcing products from large corporations, local businesses can support each other when sourcing services and goods. This not only fosters better business relationships but also keeps the money within the community, where less of it goes to profit shareholders and more goes to growing the business.
As businesses become more successful, they create more jobs. Small businesses have created 8.4 million new jobs since 2000, 4 million more than large businesses. The workers who are employed by these businesses will then spend their money in the community, therefore promoting business growth and contributing to local economic development.
Inspire, innovate, and compete
As a local business grows and succeeds, other community members might be inspired to start a business of their own. When those new businesses grow, they generate competition and the need for innovation. The result is a diverse set of local businesses that are all striving to meet the community's needs in unique ways.
Small businesses can also provide hiring and training opportunities to the community, thereby teaching people the necessary skills to eventually run their own local businesses.
Promote environmental friendliness
Local businesses tend to have a lighter environmental and infrastructural impact than large chain businesses. Whereas large developments may clear environmentally valuable and sensitive land for corporate stores, small businesses can usually take advantage of original or remodeled historical buildings. Furthermore, 50% of small businesses can be operated from home.
A block of small businesses also has better walkability than large, spread-out retailers. Customers and employees can walk and bike to businesses more easily, reducing traffic emissions and improving air quality.
Local retailers and manufacturers can also produce, access, and distribute goods in more sustainable ways. Manufacturers can access their materials locally, restaurants can get their food and supplies from community-owned farms, and businesses can distribute their goods locally. All of these represent much lower emissions from transportation and freight.
Local businesses benefit their community in many unique ways, feeding back into the community as they grow and succeed, thus reinforcing a cyclical relationship that promotes local economic, cultural, and environmental wellness.
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BBB of Southern Piedmont and Western N.C. contributed this article.