Supporting Small Businesses: Empowering Local Economies and Your Community
Every November, Small Business Saturday highlights the importance of supporting local businesses. However, it goes beyond just one day; shopping at small businesses year-round, has lasting effects for your neighborhood and the broader economy.
“When you spend money at local shops, restaurants, and service providers, you’re doing far more than completing a transaction. You’re helping strengthen your community’s growth, stability, and future resilience,” says David Neuwirth, Senior Vice President, Investments at David Lerner Associates, Inc.
“In a world dominated by large national chains and online retailers, making intentional choices to support small businesses ensures that your dollars contribute directly to the place you call home.”
Let’s take a deeper look at the wide-ranging benefits of shopping locally:
Keeping Money in the Local Economy
When you buy from a small business, more of your money stays in the local economy compared to spending at big-box stores. Research shows that on average, 48% of each purchase at local independent businesses recirculates locally, compared to less than 14% of purchases at chain stores.
Why does this matter? Because small businesses often rely on nearby suppliers, hire local contractors, and use regional professionals such as accountants, marketing agencies, or investment counselors. This creates a multiplier effect: your purchase supports a web of other businesses and people right in your area. Over time, this cycle keeps local economies healthier, more dynamic, and better positioned to weather economic challenges.
The dollars that stay in your community can also lead to better public services. A stronger tax base allows for investments in infrastructure, schools, and recreational spaces—all of which improve your quality of life.
Creating Jobs and Opportunities
Small businesses are a cornerstone of employment in the U.S. They account for 45.9% of U.S. employment—roughly 59 million workers. That means when you support a small business, you’re contributing directly to job creation in your community.
These jobs aren’t just numbers on a report—they’re opportunities for your neighbors, friends, and even family members. Local businesses often provide flexible employment, internships, and training for younger generations. They give high school and college students a place to gain real-world experience, while also providing part-time jobs for those balancing family responsibilities.
The presence of small businesses also makes neighborhoods more appealing to new residents. Families are drawn to areas with thriving local economies, which helps maintain property values and can attract further investment in local schools and services. It’s a cycle that benefits everyone in the community.
Building Stronger, More Connected Communities
Shopping local builds more than just economic strength—it creates deeper connections within your community. Small business owners often live in the same neighborhoods they serve, so they care about the long-term well-being of the area. They’re more likely to support local charities, sponsor youth sports teams, or organize community events.
This kind of involvement creates a feedback loop: residents support local businesses, and those businesses reinvest in the community. Over time, the results can be seen in vibrant town centers, more cultural activities, and a stronger sense of pride in the place you live.
Local businesses also add character and diversity to a community. Independent shops and restaurants often provide unique goods and services you won’t find anywhere else, giving your neighborhood its own identity. That variety makes communities more appealing, not just for residents, but also for visitors who contribute additional revenue.
Encouraging Sustainable Choices
Many small businesses are rooted in sustainable practices, whether by sourcing locally produced goods or reducing their environmental footprint.
Supporting them often means shorter supply chains, less transportation, and more environmentally friendly products. For consumers who want their dollars to align with their values, shopping small is an effective way to make a difference.
Conclusion
Supporting small businesses is about more than checking items off a shopping list. It’s about making choices that help your community thrive year after year.
Want to see how your financial decisions can strengthen both your personal success and the communities around you? Talk with an investment counselor at David Lerner Associates. We can help you explore strategies that align your long-term goals with meaningful support for the places you call home.
Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.