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NOVEMBER 2022 • SMALL BUSINESS SATURDAY • 3 GMTODAY.COM • FREEMAN NEWSPAPERS 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. 5 reasons to shop small versus big box Unique reasons to shop at small businesses The numbers don't lie. Locally owned businesses may be classified as "small," but they have a big impact on the national econ- omy. According to the Bureau of Labor Statis- tics' Business Employment Dynamics report, small businesses created 10.5 mil- lion net new jobs between 2000 and 2019, accounting for 65.1 percent of net new jobs created since 2000 in the United States. The Government of Canada reports that the number of small businesses in Canada in 2020 was far greater than the number of medium and large businesses, accounting for 97.9 percent of all the businesses in the country. Supporting locally owned businesses is a great way to support a neighbor, but that's not the only attraction. Here are several reasons to shop small. The feel-good factor Doing for others certainly has an impact on the person on the receiving end, but also benefits the do-gooders. A November 2020 survey by Union Bank found that 72 percent of Americans said supporting small busi- nesses was more important than getting the best deals. That may be due to the feeling of helping out a fellow neighbor. Create job opportunities Shopping at small businesses keeps those establishments afloat, and it also keeps their employees afloat. Small busi- nesses are the largest employers in the Unit- ed States. That's also true in Canada, where 68.8 percent of the total labor force works for a small business. A person may never know when he or she — or a relative — will need a job. Keeping small businesses viable provides a strong job market for locals. Keep more money in the community The Small Business Administration says $48 out of every $100 spent at a small business stays in the community. Spend the same $100 at a national retailer and only $14 stays. Enjoy a more local flavor National retailers and other businesses follow a global business model that may not allow for much customization, but small businesses can provide products or services that relate directly to the needs of the com- munities they serve. These same small busi- nesses also may be more inclined to work with local vendors and start-ups than national companies that have global supply chains. These are just a few of the many reasons to seek out small businesses when in need of products or services.

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