Local Economic Stability

Small businesses and micro-enterprises are essential for community economic sustainability. These kinds of businesses help create a substantial proportion of local employment opportunities. An example of this is seen when young people find their first job in a local business as - although they may be inexperienced - they are known as part of the community and can be trusted to be given their “start”.

Money that is spent within a community, tends to stay in that local community. This helps to support other businesses and people living in the community, fostering collective prosperity.

Collective Community Prosperity

Small businesses also tend to have less ‘red tape’ to navigate, and this gives them freedom to be able to respond and adapt more easily to changes in the marketplace and customer needs. They can innovate and diversify more fluidly. For example, introducing bespoke products and services, reflecting local tastes and preferences, creating high value, customer satisfaction experiences, and contributing to vibrant cultural community identities.

Competitive Challenges

Yet, there can be disadvantages. Often, there can be limited access to funds and resources, unlike bigger, more corporate business entities. Regulatory restrictions and high operating outlays and expenses, such as insurance costs and rent increases, can also be a disadvantageous factor. There can also be stark competition from giant corporations and those selling online. This became particularly impactful during the pandemic. Some businesses ceased trading due to factors like online competition, with local job losses in the community being one of the inevitable consequences.

Community Support

Local business, however, can be significantly sustained by local community, and vice versa. People can shop locally and engage in promoting community businesses. The can encourage local government policies supportive of entrepreneurship, and help to create space for community collaborations, start-ups and development groups.

Small Community Business ~ Big Community Benefits

Economic sustainability starts with small businesses, as when they succeed, entire communities benefit from more robust local economies and higher employment numbers, facilitating a better quality of life for all involved and affected by the local economic ecosphere.