Small Business Week, April 28 through May 4 this year, was designated by President John F. Kennedy in 1963 to celebrate the major contributions American small businesses make locally and nationally. One might say that supporting these small businesses in our communities is necessary, if not critical. In Minnesota alone, roughly 526,350 small businesses account for 99.5% of all business entities, forming a significant backbone to our state’s economic health.
Looking into the future, the outlook for small business growth remains optimistic. Entrepreneurs continue to create jobs at a significant rate and drive innovation as consumers are required to find new ways to live and work outside of the traditional framework of only five years ago. Small businesses, with the ability to operate more flexibly, can maintain different standards of service. This often provides a higher value for investment and helps preserve customer loyalty, which is a key driver as the growth of big-box and national businesses becomes ever-distant from the needs of urban and rural communities.
Why Your Spend Counts
At their heart, entrepreneurs have one thing in common—they want to make a difference. Beyond this compelling reason, there are many other reasons why supporting small businesses makes sense. Here are a few…
- Personalized attention. Who doesn’t want to have questions answered, much less by knowledgeable people? Small business leaders are invested in their communities and individuals. They get to know you, fueling a level of trust that grows over time. Small businesses have the unique ability to create a hometown feel, even in large urban areas.
- Stabile neighborhoods. Beyond bringing unique goods and services into any given community, small businesses provide job opportunities for workers of all ages. In addition, small businesses frequently do a lot to support their neighbors, building community beyond the point of sale.
- Local revenue stimulus. Local small businesses create an economic impact, stimulating a healthier economy through taxes paid at the city and state level where you live and work. Whether supporting them in person or through online outlets, your purchases support these small businesses, and in turn, our communities grow.
- Environmental impact. Small businesses are often more agile than their larger counterparts in adopting eco-friendly measures. They may also have more appetite to source sustainable materials and reduce waste and energy consumption in their operations. Conversely, residents shopping locally alleviates congestion and associated transportation pollution.
Practical Ways to Lend a Hand to Those Leading the Way
According to a State of Small Business Survey conducted in August 2023, 81% of small businesses surveyed indicated worry about how fluctuating inflation is affecting their businesses. Bottom line, your patronage matters. Alongside shopping locally, here are some other Small Business Week actions you can take tailored to your ability to contribute. 
- Explore the businesses in your community. Is there a business that offers you the same options as that big box store across town? Small hardware stores, fashion boutiques, everything for babies, or tax service specialists pop up everywhere when you pay attention. Take notice. There are many hard-working, reliable teams out there waiting to help.
- Word-of-mouth can be king. Word-of-mouth works, hands down. We’ve heard the stats before. Consumers are 77% more likely to buy a product if their friends recommend it (Nielsen). If you have a positive experience with a small business, go the extra mile and submit the review, take the pic of that meal, or tell 20 friends. In the word-of-mouth marketing versus paid media world, sharing your experience personally results in 5x more sales.
- Get small business owners involved in the greater business community. Invite small business leaders to participate in panel discussions at business associations aligned with their mission. You can also share your talents with business owners to help increase their business acumen, especially in areas of emerging technology, marketing know-how, and financial growth strategies.
- Feature small business stories. Highlight these businesses in magazines, newspapers, and social articles you generate. As well, support businesses that support small businesses. Many outsourced services like accounting support, help entrepreneurs successfully manage their books and set strategies for growth. By helping them grow, they help others grow.
- Support community banks. Community banks offer funding to neighborhoods where their depositors live and work. Through these business banking relationships, banks get to know the owner’s history which may help secure a business loan more easily. By choosing a local community bank, small business owners get personalized service and better financial terms, and by choosing community banks yourself, there is satisfaction in knowing your banking is making a difference to these economy builders.
Challenge yourself to discover new businesses during Small Business Week. Then, make it a yearlong quest. One influencer with a strong online presence and a well-placed video or picture can help transform a business in ways we can never fully appreciate.
These small businesses fuel what some say is no longer possible but is as strong as ever – the American dream. Building something that fulfills a passion, meets a need, solves a problem, and creates an environment that gives back as much as it receives is why small businesses exist. They strengthen our communities, which we at HomeTown Bank know something about.
We look forward to continuing support of small businesses in our communities throughout Minnesota for years to come.
