May is Small Business Month, and there's never been a better time to celebrate and support the entrepreneurs, family-run shops, and independent service providers that keep our communities thriving. While big franchises might offer convenience, it's the small businesses that truly fuel the heart of local economies. In this article, we'll explore why small businesses contribute more to communities than franchises and why your support matters more than ever.
Small Businesses Keep Money in the Community
When you spend money at a small business, more of it stays local. According to research, 68% of every dollar spent at a small business stays in the community, compared to only 43% spent at national chains. Local business owners are more likely to source their supplies from nearby vendors, hire local services like accountants or repair technicians, and reinvest profits into growing their local operations. That economic activity creates a positive ripple effect that benefits everyone in the area.
Small Businesses Create Local Jobs
Small businesses are job creators. In fact, small businesses account for two-thirds of new job creation in the U.S. every year. Unlike franchises that often hire based on rigid corporate structures, small businesses are more flexible and tend to provide opportunities to students, part-time workers, retirees, and career changers. Many small business owners are also first-time employers, helping individuals gain valuable experience and develop professional skills within their own community.
Community Engagement and Support
One of the biggest differences between small businesses and big-box franchises is their level of community involvement. Small businesses are the first to:
- Sponsor youth sports teams
- Donate to school fundraisers
- Support local non-profits
- Volunteer for community events
They're not just operating in the community — they're deeply invested in its success. Because small business owners often live where they work, they care about the same things you do: good schools, safe streets, and a vibrant, thriving town.
Unique Identity and Personalized Service
Small businesses help define the character of your town. That quirky bookstore, the family-owned diner, the trusted local plumber — they're the places that make your community special. They provide a level of personalized service and relationship-building that franchises rarely match. Many small business owners know their customers by name, remember their preferences, and go out of their way to make them feel welcome.
Adaptability and Resilience
Small businesses are remarkably resilient. During economic downturns or crises like COVID-19, it was often the local businesses that adapted quickly — offering curbside pickup, home delivery, virtual consultations, or new services to meet community needs. Their ability to pivot and persevere not only keeps them alive but also supports the community when it needs it most.
Franchises Have Their Place — But They're Not Local Heroes
Let's be clear: franchises provide jobs and access to familiar products, and they do have a place in our economy. But unlike small businesses, they're driven by decisions made at the corporate level. Their profits are often funneled out of the community, and their local presence tends to be more transactional than relational.
How You Can Support Small Business This Month (and Always)
Supporting small businesses doesn't have to be difficult. Here are a few simple ways to make a big impact:
- Shop local before turning to big-box stores or online retailers
- Leave a positive review on Google, Yelp, or Facebook
- Follow and share local businesses on social media
- Attend community events and markets
- Buy gift cards for friends and family
In Summary
Small businesses are more than places to shop — they are the backbone of our local economies, the creators of jobs, and the champions of our community values. This Small Business Month, and every month, make a conscious choice to support the businesses that support your neighborhood. When you buy local, you're investing in more than just a product or service — you're investing in people, dreams, and the future of your community.
Support local. Shop small. Make a difference.