Big box stores, huge corporations, restaurant chains, franchises and other corporate businesses all seem to be at the top. However, they are not the best. Small businesses are the best because they have proven to be the ones that really make this world great.
Businesses employing 20 or fewer people make up nearly 90% of the United States firms. In addition, over 50% of the workforce is employed by a small business and about 543,000 new businesses open up every month. Here are a few other reasons why small businesses are better than all others.
Create and Drive Innovation
Many of the most revolutionary products come from small businesses. Before something is scooped up by some large corporation with a ton of cash, it was probably created by a small business owner.
More than 16 times as many patents are issued to small businesses per employee than large companies. The Phantom Drone, the Owlet Baby Monitor and so many other products were created by small businesses first.
Small businesses come in many different shapes and sizes. They are unique and the story behind them is often very unique, as well. About one out of every six small businesses is owned by an immigrant and many are owned by women, as well. It’s hard to find the same diversity throughout the corporate world.
Supporting small businesses helps the local economy with about 68% of the dollars spent at small businesses staying within the local area. In addition, a national study showed that communities with a larger number of successful small businesses actually have healthier residents. The study found that these types of communities have lower rates of diabetes, mortality and obesity compared to areas with more corporations throughout.
Part of the reason may be the less stress found in these communities. When small businesses are found throughout, there’s a culture of entrepreneurship and a sense of real community.
Job Growth Comes from Small Businesses
While corporations may hire hundreds at a time they also fire and lay off hundreds, if not thousands whenever they can get the work done for a cheaper cost. Small businesses produce about 64% of the new jobs found throughout the United States and produced more than 11 million new jobs from 1993 to 2011.
Small Businesses Are Greener
Green living comes from small businesses more than large corporations. Small businesses often adopt eco-friendly ways of doing business quicker and more efficiently than larger businesses. A higher percentage of small businesses have gone green compared to larger businesses, as well.
Small businesses are the backbone of society and keep things going. Communities made up of small businesses often pass local laws to keep big box stores and corporate chains out. These areas thrive and so do the residents living there.
With an unpredictable economy, it’s likely that small businesses have a bright future. Many will remain profitable even during down times where corporations may not survive. Even when the economy dipped in 2015, small businesses remained profitable and growing.
Supporting your local small businesses is worth it and provides a sense of community. Many have pushed for more small business support with National Small Business Week, Small Business Saturday and many other ways of celebrating these businesses. If you want to find true American heroes, just look at the small businesses in your community and support them above the big box stores and corporations.