Does Size Matter?

“Bringing great people onto your team is about demonstrating that size really doesn’t matter – people do.”

-Jess Campbell

The Health of Small Businesses

It's no secret that small businesses are facing a time of struggle. From the world-wide pandemic to inflation, small business owners have felt, first hand, the impact of these economic pressures. A study conducted by the NFIB Research Center shows that 76 percent of small business owners say they have been negatively impacted by the COVID_19 pandemic and an additional 68 percent of owners expect to face potential effects. Although you may feel like these percentages are minimal in the grand scheme of our nation's economic health, allow us to reveal that with business, sometimes smaller just means more.

Small businesses generate about 44 percent of the United States economic activity. Meaning, that almost half of the nation's entire economic health is solely derived from small businesses and their success. According to Small Business Administration, small businesses annually create 1.5 million jobs and account for about 64 percent of new jobs created in the U.S each year. A study conducted in 2021 also shows that there are now over 3 million small businesses in the US, which makes up for about 99 percent of all U.S businesses (SBA, 2021).

Why "Shop Locally?"

So if small businesses truly have such an monumental impact on our nation's economy, why then do we find ourselves predominantly supporting the larger business? Is it the feeling of security? The "getting what we paid for" type of mindset? What if we told you, that cheaper prices are actually what drive small businesses? That the price cut you witness does not reflect the quality of service but instead, the quantity of diverse competition within the small business world.

Yes, the convenience of supporting a larger business may seem like (in the moment) the better option however, from better prices, to local employment opportunities and personalized services, small businesses seem to be the obvious more cost-efficient choice. There's a reason the famous American saying "shop locally" spread through the nation like wildfire. Shopping locally is not just beneficial to you, the consumer, but also to the nation's economic health and stability.

“You don't build a business, you build people, then people build the business.”

-Zig Ziglar

Small Vs. Large

Many people have a pre-existing idea that larger corporations, because of their tremendous size, are more beneficial to the customer. However, you will find the exact opposite to be true. Due to their size, larger businesses have less flexibility when it comes to modifying or accommodating for individual consumer needs. This leaves you, the consumer, feeling more like "just a number" than an actual sought out/appreciated customer.

In the business world the phrase, "the customer is always right" is often quoted but seldomly honored. However, smaller businesses tend to have more tolerant protocols/policies and therefore are more likely to individualize their services to meet the needs of their customers. Below are a few reasons why we believe when choosing a business to support, selecting smaller over large may have a greater impact on consumer satisfaction and economic stability.

5 Reasons to Choose Small over Large Businesses

#1 Local Employment Opportunities

As mentioned before, 64 percent of American jobs are formed from small business opportunities. Meaning that about 58.9 million employees in the United States work for small businesses. Choosing to "shop locally" creates new job opportunities and circulates the money generated from these small businesses back into the local community. By supporting the small businesses in your community you are fighting the unemployment rate not only for the U.S but specifically in your geographical area. More jobs leads to more revenue, thus creating a more economically stable and diverse community around you.

“Make something people want" includes making a company that people want to work for.”

-Sahil Lavingia

#2 Personalized Customer Service

Customer satisfaction. This is what large corporations claim is their primary goal but chances are, "you get what you get, and you don't throw a fit." With larger businesses, customer service is a department simply used to keep customers content, while still bringing in revenue. In other words, customer service's job is to handle problems when they arise, without losing company money. For example, if a customer is unhappy, a larger corporation may decide that losing one customer is more beneficial than changing company policies and affecting multiple customers. The small voice of one customer is drowned out by the revenue of thousands. However, with small businesses the owner has more freedom. Customer service is as it should be, service FOR the customer. Often times, small businesses can modify or customize a service to meet the specific needs of even just one customer. When working with smaller businesses, you are not just a number but a valued customer with obtainable requests.

#3 Cheaper Prices

Choosing a small business over that of a larger one, can create more competition in a community and result in reasonable/lower pricing. When one large business owns the majority portion of the market, the lack of competitors allows for the control of pricing. This is called a monopoly and just like the game, the person with the monopoly, always wins. Now while we do have laws to prevent monopiles from forming here in the U.S, just because one might be a monopolist does not mean the law has been violated. It just means that larger businesses are less likely to budge on pricing as opposed to the more competitive, smaller businesses. When a community has multiple small businesses, competition widens even more and therefore so do prices, leaving the consumer with many practical options. Having small businesses within a community helps keep the pricing in the area reasonable and innovation for new/competing ideas higher than ever.

#4 Local Resources

A business's integrity and credibility are important factors to consider when determining where to spend your money. With small, local businesses you can get to know the owners, trust recommendations from local friends and hear testimonials from people in your community all before you spend a cent. Many would weigh a recommendation from someone they know as more trustworthy than any random online review. Being able to communicate with others in the community about pricing or even better, possible competitors, will help you determine the best business for the job. Small businesses also have the opportunity to network with other small businesses in the area for promotions and sales that will benefit everyone in the community.

#5 Community Support

Small local businesses are essential to their communities' economical health and stability. For one, the revenue that a small business makes generally circulates within that community. The more money in a community, the larger the funds for parks, libraries and other city amenities. Higher revenue in a community also increases police funds and therefore decreases crime rates. Small business owners often give back to their communities as well. Whether it be through fundraisers, special events, or even donations, many small business owners feel the obligation to give back to those investing in their business. In a sense, when you support a local business, you too will reap the rewards.

Size Doesn't Matter-People do.

Hopefully by now you have a broader understanding that when it comes to business, size doesn't matter but people do. We have shown you that larger businesses don't have the time or energy to individualize their services and you begin to feel like "just a number." They control the pricing and offer unified customer service support, thinking little of you, the actual customer. Small businesses however, get to know you, they are your neighbors, and they are your community. Small businesses keep the competition fierce and the prices unbeatable. So in our opinion, invest in a business that cares about you. One that offers fair prices, listens to your needs and adjusts their services to ensure that you are satisfied. Customer satisfaction is obtainable, customer satisfaction is "shopping locally." Now, more than ever, is the time to support our small and local businesses. Everyone is doing their best to get through today's economic uncertainty but the more we support small business owners and Americas' entrepreneurs, the more vibrant our economy will be when we overcome these difficult times.

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