The great contribution of the small business sector is its benefits and improvement of our local economy largely. Moreover, it strengthens the personal relationship among the citizens phenomenally. It has been reported by small business administration of New York that small business provides about ninety-nine percent of employment comprising all employer firms. As per John Clemenza New York, that it has generated about sixty percent of new placement and contributed about forty percent of private salary package of New York.
Benefits of small business
Small business provides employment to about half of the working community in the United States. They provide valuable benefits to local people substantially.
The ways that small business benefits the local community are enumerated below:
It identifies local community
While passing the main street you will observe that, your community has developed its individual and specific character and fashion. Small business results identity of a community by its large and wide popular stores. This comprises family shops, which are frequently visited by local parents, a business or home for the pet dog, beautification shop, emporium or store selling antiques, coffee bar, yoga learning center, beauty parlors, book and stationery stores, electronic gadget stores and so many other small businesses. Many small travel and tourism shops have contributed a unique and throbbing character of a locality.
Participation in activities of the local community
Proprietors of small businesses are an integral member of the community where they stay and carry out business. Gradually they become dominating in the locality. Local businesspersons also have the interest to involve and participate in various issues related to local community interest. As an example, they may organize and sponsor a little sports team, contribute and donate to the homeless peoples of the locality. They also join the local chamber of commerce and take part in charity events organized by local NGO’s.
Motivation in Community feelings
It is beyond doubt about their contribution in creating a sense of communal identity amongst the local people and involvement in local activities; they help to create a sense of community. Their individual business tends to become business for the people. They can easily create a personal relationship with their customers. They even know many local persons by name.
Positive environmental contribution
Each town has its own unique associative ideas and phenomenal environmental friendly attitude. For example, it is found that small business clusters located in residential hubs may act to reduce vehicular pollution by restricting the use of automobiles, which mitigates traffic jam. John Clemenza says that the business community also encourages to use bicycles or battery-operated cars to reduce pollution. They also take part in the protection of ecologically sensitive lands of the locality. They also take care of the waste disposal by the people providing the facility for collection and disposal of wastes. The small business sector also has significant contribution in economic boosting by:
- Increasing productivity
- Labour engagement
- Higher number of retail sale
Growth in tax collection
When local people do marketing in local shops the taxable money remains with local economy benefiting local development. Local business will pay more amounts of taxes and duties. Similarly, local small businesses procure from local market thus disposing more of their profit money back into the community. This money is utilized for local police and fire control division.