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NOVEMBER 2022 • SMALL BUSINESS SATURDAY • 3 GMTODAY.COM • NEWS GRAPHIC Small businesses are booming. Informa- tion from the Small Business Administra- tion and the U.S. Census Bureau's Annual Survey of Entrepreneurs says that small businesses, or firms with fewer than 500 workers, accounted for 99.7 of businesses in 2016, the most recent year for data. Firms with fewer than 100 workers accounted for 98.2 percent of companies. In Canada, 97.9 percent of businesses were small as of 2017, with more than half concentrated in the Ontario and Quebec provinces. Thanks to their influence and reach, small businesses have the potential to impact local communities in numerous ways. • Small businesses employ local resi- dents. The Statistics Canada Labour Force Survey indicates companies with fewer than 100 employees employed 69.7 of the population in 2017. According to the SBA's Office of Advocacy, small businesses accounted for 61.8 percent of net new jobs in the United States between 1993 and 2016. • Small businesses are innovative. The SBA notes that small businesses repre- sent about 96 percent of employer firms in high-patenting manufacturing industries. That suggests that small businesses are full of new ideas. • Small businesses support local charities. Many local businesses give to charity, particularly local charities. Some donate money while others may offer their professional services or event spaces, each of which can be particularly helpful to local communities. • Small businesses contribute to com- munity identity. Small businesses con- tribute to the charm and character of a town or city. Many local businesses make up the fabric of Main Street, and towns are known and loved for the businesses that have endured. • Small businesses help the environ- ment. Shopping locally means consumers do not have to travel far to get their goods and services. The United States Environ- mental Protection Agency's research report on walkable downtown centers found small businesses encourage walking and cycling, helping to reduce air pollution from vehi- cles. • Small businesses keep money in communities. Local businesses keep dis- posable income and tax money within their communities. Business tax money remains local and can support schools, roads and municipal services. Local small businesses are the life force that keeps cities and towns prosperous and humming along. Such establishments help build a sense of community and forge last- ing relationships. How local businesses give back to their communities The importance of small businesses to the economy cannot be overstated. Though national chains often garner publicity, local businesses are equally, if not exceedingly, worthy of attention. What defines a small business as "small" varies significantly, but these busi- nesses are generally privately owned and generate far less revenue than big corpora- tions. General consensus also defines small businesses as companies with fewer than 500 paid employees, according to the U.S. Small Business Administration. Here's a deep look at why small busi- nesses are so vital, and why consumers should direct more of their purchasing power to smaller companies rather than the big box retailers and other national chains. 1. Autonomy and diversity The layout and offerings at national chains will be identical whether you live in the mountains or at the beach. Big box stores follow a consistent marketing strate- gy and look the same regardless of where they are located. That familiarity can come at the cost of variety. On the other hand, an independent business offers the products and services that are reflective of the cus- tomers and the community they serve. 2. Local hiring strategy Certain big box retailers will hire local residents, but hiring policies may push for promoting from within the organization. This could mean relocating an employee rather than bringing in someone from the community who may be more in tune with local sensibilities. Small businesses may be more inclined to hire residents they know and keep hiring centralized to the local area — something that keeps more resources and money in the community. 3. Adaptability and change Local businesses can move more quickly to respond to economic factors that require change. Since they are focused more on the needs of their customers rather than stock- holders, changes can be implemented rapid- ly without having to go through red tape, meetings and updates to corporate policies. Changes also can be customized to the local community at large. 4. Investing in the town According to the financial resource Financial Slot, shopping at locally owned businesses rather than big box retailers keeps more money in the community. Local property taxes and other taxes paid by the businesses go right back into the communi- ty. This helps raise overall value for home- owners and can even reduce their taxes. The funding helps keep police, fire and school departments functioning properly. 5.Turnover is greater While no one wants to see a small busi- ness fail, that fate is sometimes unavoid- able. However, that turnover helps teach communities what was done poorly and helps others learn from those mistakes. It also means fresh businesses will come in and replace the old, driving new growth, opportunity and competition that keeps prices competitive. The benefits of a thriving small busi- ness sector are numerous. Consumers can do their part by patronizing these firms more frequently. 5 reasons to shop small versus big box

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