Small businesses make up the foundation of this country’s economic stability. After all, starting a small business and building wealth are all parts of the American dream. According to statistics, small businesses make up 99.7% of the businesses in the United States. That’s an incredible amount. What’s even more incredible is the direct impact small businesses have on the community. There are quite a few ways that small businesses impact the community in a positive way. If you’re considering the idea of building your own start-up, take a look at a few of the ways your company may benefit the local community.
Job Creation
When you open a small business, you open it with the hopes that it will expand and grow over time. As it grows, you’re going to need help. Even if you’re operating as a sole proprietorship initially, eventually, you’ll get to a point where you’ll need to operate as an LLC or as an incorporated company. When you do this, you’ll need extra hands to manage the process. Managing the process involves hiring new employees. Hiring people within the local community will be incredibly beneficial because it provides economic stability for members within that same community. As a result, they’ll purchase more local goods and become resourceful to those around them.
Taxes
Of course, there are tax benefits to opening a small business. However, it also benefits the community because when residents of the community come and shop, their tax dollars stay right in that particular community. You’ll get the benefit of tax dollars that’ll improve the community. You’ll also be able to experience more profits as opposed to customers that spend their money in mega-chain stores like Walmart.
Entrepreneurship
While there is nothing wrong with working at a 9-5, you’re really able to move the needle faster within the realms of entrepreneurship. With a 9-5, there’s a cap on how much you can earn. If you want to earn more, you’ll have to either go to school for a graduate degree or you’ll have to look for another job in another field. With entrepreneurship, it’s more of a numbers game. The more you serve and the higher your profit margin and value are, the more money you’ll bring in. As a result, this will directly impact the quality of life you and your family experience. Entrepreneurship is what takes low-income families and moves them into the middle class and upper middle-class living experiences.
Competition
When multiple businesses are within the same community, it breeds a healthy level of competition. As a result, money is flowing into the community and people are purchasing goods. When a community attracts businesses and people, this means the area is alive and active. Communities that are active are usually the same ones that are looking to improve and become better. Better communities equate to better education, homes and employment opportunities. Take a look at the communities with a lot of thriving and successful businesses. The home values are usually high and the quality of living in those communities is normally good.
Small businesses influence the communities in more ways. Take a look at companies like ASEA. These types of companies strive to make a direct impact on the world around them. When you focus on enhancing the lives of others, you’ll also reap the benefits. These points are just four of the many ways to impact the community through entrepreneurship. So, if you’re considering the start-up/entrepreneurial life, understand that it’s not easy. However, it’s worth the sacrifice, long hours and initial grind. Knowing that you’ll be able to build up your community and make a major difference is enough to get started.
