In a world dominated by corporate giants and global conglomerates, it's easy to overlook the unsung heroes of our economy—small businesses.
These businesses are at the heart of our communities, and they deserve our unwavering support.
They hold the power to transform communities, foster innovation, and create a more ethical and vibrant marketplace.
Despite this, small businesses have had it pretty hard lately, particularly in the wake of the COVID-19 pandemic. Some challenges small businesses currently face include keeping up with digitalisation, internationalising, and acquiring critical talent.
In fact, between 2020-2021, 70-80% of small and medium sized businesses lost between 30-50% of their total revenues.
As a reaction to this disparaging phenomenon, there’s been a rise in support for small businesses amongst the general public. In the wake of the pandemic, a whopping 82% of shoppers stated that they’d rather pay more to support small businesses.
Just like everyday shoppers are coming to realise the value of small businesses, business-to-businesses and non-for-profits need to do the same.
Today, we delve into a myriad reasons why supporting small businesses is not just beneficial but crucial for both B2B and NFP organisations, as well as for broader society.
The Benefits of Supporting Small Businesses
It is both important, from a values-driven perspective, and financially advantageous for B2B’s and NFPs to support small businesses. Let’s first focus on the advantages companies and organisations get by increasing their support.
Just as shoppers buy from small businesses, business-to businesses and non-for-profits can collaborate, buy from, and employ small businesses. By doing so, they will also reap financial benefits. Here's why:
It stimulates the Economy
In Australia, the value of small businesses account for one-third of the country’s GDP. Almost 98% of businesses in Australia are small businesses.
Just these metrics alone are telling: small businesses significantly contribute to the wealth and prosperity of the nation. If small businesses struggle, the general economy struggles, plain and simple.
Supporting small businesses stimulates local economies. It keeps money circulating within the community, leading to more jobs (more on that below), increased tax revenues, and a generally healthier financial ecosystem.
This, in turn, can benefit B2B and NFP organisations through a wealthier, more stable customer base.
It creates more jobs
You might think that large corporations hire more people than small businesses. In theory, you might be right.
But there are more small businesses in Australia than large corporations, meaning that small businesses are responsible for hiring more of the private workforce.
Think about all the small businesses right here in your neighbourhood. They vary from advertising agencies, manufacturing plants, your favourite local restaurants, and corner shops.
These businesses play a big role in boosting the local economy by providing jobs to folks in the community.
It encourages innovation
Supporting small businesses can foster innovation in several ways.
First, having a wealth of small businesses in local communities cultivates healthy competition, as opposed to supporting a corporate company that monopolises the field. With competition comes the need to stand out. This in turn forces big companies to get creative as well and keep up with disruptive new ideas.
Next, small businesses are often started by entrepreneurs. Supporting small businesses thereby encourages a continuation of the entrepreneurial spirit. Small businesses are constantly driven by the desire to differentiate themselves from their large competitors and find unique solutions to age old problems.
Finally, creating innovative solutions to market demands benefits B2Bs and NFPs by increasing the variety of products, services and ideas that circulate in global markets and local communities.
The Importance of Supporting Small Businesses
Apart from the financial advantages gained in supporting small businesses, there is also a value-based perspective that comes into play. Small business support is not just advantageous, it is the right thing to do for several reasons, all covered below:
It fosters local community growth
Local small business owners pay taxes that are subsequently funnelled into local community building initiatives.
Furthermore, compared to large corporations, small businesses tend to be more involved with local charities and local non-for-profits. These strong community ties create a stable foundation for more growth, more connectivity and more collaboration.
Why is this so important?
Because small businesses infuse character, culture, and a sense of belonging into the neighbourhoods they serve. When B2B and NFP organisations engage with small businesses, they become an integral part of the community, enhancing their own image and fostering goodwill.
It emphasises the Customer Experience
Small businesses are generally more focused on improving the customer experience and personalising their services and products to a higher degree.
This level of engagement is something to aspire toward. Big companies and corporations are now seeing the value of personalised marketing and advertising, and are taking cues from local businesses that have that long-lasting expertise .
Overall, a greater focus on the customer experience is a strategy that is highly valued right now, so following in the footsteps of knowledgeable small business owners that pay close attention on how to foster personal relationships is a valuable endeavour.
It is ethical and sustainable
Many small businesses have ethical, sustainable, and socially responsible practices at their core. Collaborating with them can align organisations with values-driven initiatives, enhancing their reputation and positively impacting society.
For example, small businesses tend to manufacture, produce and purchase goods locally, which reduces both yours, and their carbon footprint.
Buying locally means a shortened product journey, reducing the amount spent on transportation and pollution.
Whose Responsibility Is It?
We mentioned that small businesses have faced many challenges as of late. To survive, they depend on support from individual customers, other businesses, and non-for-profits.
Of course, it isn’t written in stone whose responsibility it is to support small businesses. Rather, individuals and organisations must take it upon themselves to recognise the overall benefits small businesses can offer and make the decision to support them.
Additionally, businesses can receive governmental support, as well as support from private associations.
The Australian government provides all kinds of support to small businesses including grants, support programs, advice and other useful information.
The Small Business Association of Australia provides a range of quality programs, services, technology, education and trade missions to small businesses. They also advocate for small business rights and bring political issues to the forefront.
Indigenous Business Australia is focused specifically on sparking more participation and engagement within Aboriginal and Torres Strait Islander communities with the wider economy.
This initiative intentionally tries to close the gap between Indigenous Australians and other Australians.
Final Thoughts
Supporting small businesses is both an ethical choice and an investment in the future of our communities and economies.
Aligning with small businesses can create a more vibrant, inclusive, and prosperous society. Moreover, it's our collective responsibility to ensure small businesses have the resources and support they need to flourish.
If we want to shape a value-driven world we should champion small businesses’ cause, because their success is our success.