Big brands with big money have changed the shopping habits of consumers over the years, seeking convenience and low prices. However, with the emergence and accessibility of the internet, consumers are slowly moving back to supporting local businesses. The digital age has allowed small businesses to compete with big corporations by having a brand presence online, allowing consumers to order their products from home, and spreading word of mouth easily. But why should businesses and consumers choose to do business with local companies?
Small Business=Big Impact
Although big companies are often more convenient and cheaper in the present, the long-term impact of local business is far greater. Consider the following statistics:
- The small business Administration estimated that 99.9% of businesses were small businesses (500 employees or less).
- 68% of every dollar stays in the local economy with small business sales versus only 43% with chain retailers.
- Forbes estimates that for every $10 million spent at a local business, 57 jobs are created, while spending the same amount at a major conglomerates creates a mere 14 jobs.
- 60 of the largest corporations in the US paid $0 in taxes in 2018 while generating $79 Billion in profits. Doing business locally helps keep that money in the community to fund police departments, schools, fire departments, roads, etc.
- According to ResearchGate, 56% of employees at local businesses feel a sense of commitment and loyalty, while only 38% feel the same way at non-local businesses.
- 50% of all pollution in the US is created by industrial sources. Choosing to shop local cuts down on processing, packaging, and waste.
A Different Level of Care
Small businesses are the backbone of our communities and it is obvious to see from the stats that they make a huge impact in our local communities. Not only do communities benefit, but the consumers do as well. While big business focuses on increasing value for shareholders by cutting costs and often shipping jobs overseas, local businesses are focused on providing for the customers and clients. They know the people buying their product or service and the consumer knows them. It creates a sense of personal trust and investment.
Local businesses also help keep a community unique. Instead of mundane brown boxes filled with cheap products, small businesses are unique and help preserve the history and atmosphere of a city. The customer care is also unique to each customer. Instead of filling out a basic complaint form or calling a 1-800 number, small businesses take time to care for each individuals’ unique needs.
Best of Both Worlds
Even though shopping local has many benefits, corporations are still very important to our society and should not be diminished. They create a lot of jobs over many industries, provide uniform products or services across many states, and have inexpensive alternatives due to their buying power. So what if consumers could have the best of both worlds?
Franchising offers that option in some cases. Large brands such as McDonalds and Subway are the most popular franchises, where local owners run the stores or territories under the national brand name, but they don’t necessarily embody local business. Other brands such as Chick-Fil-A and Sports Clips do a much better job of allowing their local owners to be more involved in the community and cater to their needs.
Signal 88 Security is a unique franchise model where local owners need to be in tune with their communities because the contracts differ based on location. For instance, a Signal 88 Franchise in Florida might have contracts with multiple marinas whereas a Signal 88 in Vegas might focus on hotels and casinos. For this reason, Signal 88 owners are committed to their communities, but are still backed by a national brand to be able to compete on price. Their commitment to the community is also unrivaled due to the fact that over 80% of the owners are former military or law enforcement who are passionate about serving their communities.