Why Supporting Small Business Matters
9/10 Australian Businesses are Small Businesses. They account for 35% of Australia’s gross domestic profit and employ 44% of Australia’s workforce and are prevalent across all sectors of the economy in Australia, as reported by the ASB Ombudsman in 2019.
The challenges Small Businesses face has been exacerbated throughout the COVID-19 pandemic. Two-thirds of businesses across all sectors reported taking a hit to revenue or cash flow due to COVID-19. Two in five businesses said they had changed how they delivered goods or services, one-third said they had renegotiated their leases, and one in four had deferred loan repayments. About one in 10 said they had paused trading altogether. In 70% of cases, this was due to COVID-19.
Whilst restrictions have eased, small businesses continue to navigate through uncertain times. Compounded by a lack of clarity over what will happen when the various COVID stimulus end, these unknowns highlight the importance of supporting Small businesses.
When you support locally owned businesses, you’re supporting the local economy and the employment of local people.
When you spend $100 at a local business, on average 58% more of your money stays in your community compared to what would have happened if you spent that $100 at a multinational company based store.
1. The Majority of Jobs in Australia Are Provided By Local Businesses
Small local businesses are the largest employers in Australia, so supporting a local business helps to both retain and grow jobs. Locals supporting locals is the primary foundation for not only nurturing culture but building a sense of community.
- Local Economic Stimulus
When you purchase from locally-owned businesses more money is kept in the local community as locally-owned businesses often purchase from other local businesses, and trades and service providers. Therefore, spending your money at local businesses supports other local business which in turn stimulates the local economy.
- You Matter More
With every dollar you spend, you are casting your vote for the kind of world you want to live in. It is much easier to see this put in to practise when you buy from a small business. Your values and desires are much more influential and important to a local business owner as opposed to managers of large chain stores. Therefore the success of local business relies on you and your feedback - facilitating change through your purchasing decisions and feedback.
- You can Sometimes try Before you Buy
Small business owners are generally on-site and it’s easier to ask a local owner if you can sample or trial a product. Good luck asking chain store staff if you can sample the product before deciding to buy!
- Your financial support aids their existence and the community they exist in.
Often we are asked to donate to charities and foundations who will then distribute your money to areas in need. By choosing small businesses over chain stores, you are directly putting your money into the hands of the owners. Local businesses are owned by people who live in the community, so are less likely to leave, and are more committed to the community’s welfare and future. They have a direct commitment to you as they rely on your support.
We appreciate that supporting your favourite small business may not be feasible at the moment. But never fear - the below may not cost anything but it means everything to a small business. owner.
In support of Small Business TCGCo is Giving Away 25 Custome T-shirts, Click Here for competition details.