Two men shopping at a small business.

The Importance Of Small Business In Your Community

Jessica Harp
December 1, 2020

Now more than ever small businesses in your community need your help and support. Due to shutdowns by local and state governments to curb coronavirus infection rates, as well as limit the amount of people in businesses depending on the size of the building, foot traffic has decreased significantly, which in turn has reduced the amount of sales. 

What can you do to help? Shop in-person if possible, while still observing pandemic protocols. Or shop online if the small businesses in your area have an online store via their website or Etsy. If you want to patronize a restaurant, order to-go or utilize apps like UBEREats and DoorDash if available. With the rise of the pandemic, supporting small businesses is even more important as they bring so much to the community. 

In 2018, the last time the U.S. Small Business Administration Office published its FAQ, about half of all small businesses survive five years or longer. With the onset of the pandemic, that number could greatly decrease. Support your community by shopping small not only on Small Business Saturday, November 28, 2020, but every day. 

What Is a Small Business?

The Office of Advocacy defines a small business as an independent business having fewer than 500 employees, which means you have likely interacted with a few small businesses within your hometown—family-owned restaurants, local record stores, music venues, nail salons and spas—the list goes on. These, and more, are all small businesses counting on your patronage to survive.. 

Innovation and Competitiveness

In a press release by the U.S. Small Business Administration Office of Advocacy, as of January 2019, small businesses “create two-thirds of net new jobs and drive U.S. innovation and competitiveness” and accounts for “44 percent of U.S. economic activity.” The Small Business Administration also says that small companies develop more patents per employee than larger companies. That’s a big deal!

Small businesses spark innovation. They are doing everything they can to stand out and survive, which includes being innovative within their field. They have to prove themselves even more than a big organization and serve a need within a community. As a result, a healthier marketplace is created. 

Major companies that nearly everyone engages with like Apple, Microsoft and Amazon started as small businesses. Microsoft literally began in a garage and is currently the second most valuable company in the world at $1.359 billion. Apple and Amazon follow in the third and fourth spots. Those companies started small, and through perseverance and innovation they grew into the titans they are today. 

Job Growth

The 2020 Small Business Profiles show that “small businesses added 1.8 million net new jobs in the United States during the latest year studied” and employs “47.1% of the private workforce.” That’s nearly half of the private workforce in the U.S.. Think about your community, how many businesses are small businesses compared to giant big box stores? It’s likely those small businesses either outnumber big companies or are sitting pretty close to taking up nearly half of the marketshare.

The SBA’s 2018 FAQ states that there were about 47.5% of private sector employees—that’s about 59 million out of 124 million total—in the United States. “From 2000 to 2017, small businesses created 8.4 million net new jobs while large businesses created 4.4 million. Thus, they accounted for 65.9% of net new job creation in the period,” according to the SBA. Communities need small businesses; small businesses need communities. They go hand in hand and the benefits, including job growth, are numerous.  

Diversity Within the Community

Small businesses provide opportunities for many people, including women and minorities, to achieve financial success, according to Lumen. The U.S. Senate Committee On Small Businesses & Entrepreneurship says that women-owned businesses have been the fastest growing segment in the U.S. economy for the past two decades, and they’re growing at twice the rate of other businesses with 10.1 million female-owned businesses employing 13 million Americans and generating $1.9 trillion in annual revenues in 2008 alone—that was during the height of the recession! 

As of today, there are nearly 4 million minority-owned businesses across the U.S., which accounts for over $591 billion in annual revenue. All of this is taking place within your community and making your community even more enriched as a result. You can support diversity by patronizing small businesses within your community that are women- or minority-owned. 

Increases the Tax Base

Shopping at small businesses in your community keeps tax dollars in your local economy. As a result, that local economy helps to improve your community. It’s also likely that those small businesses will utilize other small businesses for their needs, which in turn puts more money earned from their business back into the community and sparks economic development.


ACTIVEWorks Camp & Class Manager makes these efforts easier and more effective. The all-in-one solution offers your organization the ability to create professionally branded, eye-catching emails with easy-to-use templates, as well as sends them to current and potential members. With Camp & Class Manager’s integrated social media, you will be able to grow your registrations and membership with ease. Talk to a specialist today!

ACTIVENet will be there for you when it comes to your organization’s needs. Whether that means engaging your community, streamlining operations or managing participation, our software is here to help your organization perform at its best.

Set yourself up for success.

See how ACTIVE can help your organization grow.
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