At Pineapple Payments, we are proud to partner with fellow small businesses because we understand the invaluable contribution small businesses make to both our economy and our society as a whole.  Small businesses represent the backbone of American industry and the spirit of building your own future; but small businesses are also vital to the local economies they are built in.  Here are a few of the many ways small business makes local economies function.

Economic Contributions

A small business is defined as any company with fewer than 500 employees.  Amazingly, small businesses represent a whopping 99.7% of all employer firms! It is also estimated that since 1995, small businesses are responsible for creating 64% of all new jobs in the United States.  Without small businesses across all fields, millions of Americans would be out of a job.

Economic Growth

Small business brings a great deal of innovation to any field.  Small businesses are usually in more direct contact with consumers and the general population.  This means they are more attuned to what products and services would best serve the common good.  With fewer levels of hierarchy to wade through, small businesses are also generally more open to trying out new ideas in a shorter time frame.  All of this innovation benefits the area a business is based out of since they start from home out.  New products, concepts, processes, and so on, get their start in the communities they come from.

Adaptability

Because of their direct connection to the community, small businesses tend to be more adaptable to changing economic climates. As consumer demands shift, small businesses find themselves at the front line of making adjustments to keep their clientele happy in a way that larger companies cannot. As a result, customer loyalty tends to be much stronger.  In times of economic downturn, many consumers make an effort to continue supporting their local favorites more than larger companies.

Keeping Money Local

Small businesses generally work hard to keep as much business local as they can.  This means working with and supporting fellow small businesses, using as many local goods as possible, etc.  This focus helps stimulate local economies.  It also benefits the community as a whole.  Local businesses’ success means more local tax money, which helps improve schools and other local services.  While money spent at larger, chain businesses rarely stays in the community, small businesses keep a large percentage of their profits and turn those back into other community endeavors.

Future Growth

Small businesses don’t always stay small.  Household names like Nike, Ben and Jerry’s, or Microsoft all began as small, home-grown endeavors. When small businesses begin, they offer jobs to the people in their community.  As they grow, the community continues to benefit from having the “first dibs,” so to speak, on new jobs and opportunities.

The official Small Business Saturday may not be until November, but we think you should support your local shops every day! Without small businesses, our local economies would not be able to function.  So make sure to hit up your favorite local diner or go to a nearby boutique this weekend to show how much you value your small business pioneers.  That’s what we’ll be doing!