Why you should care if small businesses in your area are struggling

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Small business closures are bad news everywhere.


Key points

  • Many small businesses are struggling with soaring inflation.
  • Supporting these companies could really work to your advantage.

During the pandemic, many small businesses have been pushed to the brink as stay-at-home orders have been enacted and non-essential establishments have been forced to temporarily close. Even though small businesses were eligible for various forms of aid at the time, including PPP loans that allowed them to meet payroll costs, many local establishments nearly closed for good during the one-year period. following the COVID-19 outbreak. .

But the small businesses that survived that blow aren’t necessarily thriving today. Labor shortages have made it difficult for small businesses to operate. And in recent months, local businesses have buckled under the weight of inflation.

Just as everyday consumers are racking up huge credit card tabs to meet essential expenses, small businesses are spending more money than ever to purchase goods, pay staff and cover overhead. And many of these businesses are still at risk of closing, even if it doesn’t appear to be the case.

If you have small businesses in your area, it pays to support them as much as you can. You may think that small business closures don’t matter to you individually. But in reality, they might impact you more than expected.

Keep these businesses alive

If your favorite café or bookstore in town is forced to close, you’re likely to be quite upset – and so you might be inclined to support it in an effort to prevent that from happening. But if there’s a clothing store around the corner that you hardly ever set foot in, you might not care too much about the financial health of that business.

Here’s why you should, though. On the one hand, smaller companies tend to put more money back into their respective communities. A small business in your area is likely to source from other small businesses, contributing to its success. And small businesses also pave the way for more local jobs.

Also, if small businesses close quickly, it can lead to lower property values. If you own it, that’s not a good thing.

On the other hand, successful small business communities tend to attract other businesses looking for a home. Suppose your town really needs a vegan restaurant. If local businesses are doing well, a vegan chef with a space-seeking business concept might be attracted to your town. But if 20% of the businesses in your area are closed and abandoned, that leader might run the other way and bring his idea to another city.

That’s why it pays to push yourself to support small businesses as best you can. This doesn’t mean you should spend money on things you don’t need or want. If you’re a vegetarian, you don’t have to frequent the corner steakhouse. But if you usually order craft supplies for your kids on Amazon, you might want to buy them from the shop in town, even if it means paying a little more for your purchases.

do your part

Small businesses rely on locals to stay afloat, and supporting them is a great way to give back to your community. And if you don’t have the funds to do so, help in other ways. Promote your local bakery on your social media page and encourage your friends in nearby towns to check it out. There are ways to generate income at local establishments without spending money you don’t have, and if you’re willing to put in the time, your efforts could be very worthwhile.

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