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Why Small Businesses Are Good for Local Communities

Businesses and shops are vital for a community. Not only do theypromote regional work and talent, but they also help the local economy throughout the year.

Whether they stock greeting cards fromcard suppliersor supply essential items, small businesses with brick-and-mortar shops are valuable in representing creativity in their respective communities.

In this article, we will explore the impact that small businesses have on their local economies.

Build local economy

Did you know small businesses actually make up around 99% of all businesses operating in the United Kingdom. Therefore, they are not only great for bring a sense of local pride to communities, but also act as driving factors in local economies, with small businesses with 10 or more employees making an average turnover of £2.8 million. From brick-and-mortar shops to local produce markets, small businesses provide a central point for local trade.

Actually, markets attract tourists through their promise of unique products and bargains. Small businesses thrive in these environments due to their diversity. They can offer everything from fresh produce andstationery to local artwork, greeting cards,and confectionary – and it is this variety which attracts customers. Tourism is important for local economies as it encourages new visitors, as well as having an established base of frequent locals.


As of 2022, small businesses made up 61% of UK private sector employment, with 16.4 million employees. By having a small business and hiring 10 or more people, you can uplift employment rates within your area. These businesses can also provide training opportunities and work experience for young staff to prepare them for working life ahead.

By  employing opportunities within the local area, you can help the economy further. Local employment can lead to more renters and homeowners within the area, which, in turn, can create more business for other shops and eateries.

Supporting art and creation

Small shops and businesses can encourage a range of innovative and creative products. By focusing on local produce and artists, many small businesses are able to promote their local area and their peers. This can be seen through the range of products, from fresh produce from local farmers to creative pieces from artists and more as they spur each other on.

This can give a shop, business, and the local area, a community feel by making it a creative and collaborative area. Honouring local artists and creatives not only highlights amazing talent within the area, but can also strengthen loyalty between small businesses and their regular customers.


Small businesses have the ability to promote change within the immediate area. Companies are aiming to become carbon neutral more and more. For example,Brighton Gin usesbottles which are made up of 85% recycled glass, andit is companies such as these which can encourage change within their local areas.

Arranging events and providingsafe spaceswithincommunities is another way businesses can encourage local change. Small businesses might be well known for their charity work within communities, whether supporting the LGBT movement or providing for food banks.

These businesses and shops also have the power to decide their company standpoint on local issues and make real-time changes to their environment. And if you work alongside other local businesses, such as stocking your produce from local farmers, you can help reduce the environmental impact of importing and transporting while helping your neighbours.

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