Many local industries rely on specific conditions for success, which may include consumer preferences or technical standards; or perhaps they require exceptional local skills.
Rural leaders can support local businesses through various strategies, including creating business-dense downtown hubs, connecting with universities nearby and forging partnerships with major regional employers.
1. Support Local Businesses
Small businesses form the backbone of our communities, from coffee shops and art studios to restaurants and more. Not only do small businesses tend to hire more local employees but they often contribute significantly to school, volunteer fire department and city council funds – in fact a recent report by Nextdoor indicated that residents who support local small businesses see an increase in community pride and trust.
Small business owners face unique challenges during a pandemic; to thrive they need their businesses to keep cash flowing through them in order to pay employees, keep the lights on, and put food on the table for themselves and their families. Therefore it is imperative for everyone to support local small businesses.
To this end, there are a few simple things we can all do to support local economies. First of all, many small businesses host seminars and workshops to teach people about their industries; attending these sessions can provide an excellent way to both learn while supporting your local economy.
Local businesses also provide gift cards and loyalty programs as a means of maintaining healthy revenue streams, so giving these as presents to friends and family is another great way to show support for local small businesses. Local councils could assist by offering entrepreneurial programs for people looking to start their own businesses as well as advice on obtaining funding or loans for small business startups.
2. Bank Local
As businesses strive to survive and expand, one of their first and most critical steps involves finding the appropriate financial institution that will assist with essential business services such as paying bills and disbursing payroll. Small, local banks offer these solutions; their bankers understand the challenges new and small businesses encounter as they expand and prioritize community investment and lending. Furthermore, local banks often have more accommodating credit requirements for entrepreneurs who may not have an established track record or are newcomers to business.
Local banks also differ significantly in their values and priorities from nationwide mega banks that tend to prioritize profits over customer service, which may affect small business loans and products as well as customer service available to local small businesses.
Rural communities that are receiving substantial investments from large employers like Toyota and other automotive manufacturers need local business owners to collaborate with these newcomers so that the economic benefits are disbursed amongst local businesses. NCGrowth, a Kenan Institute-affiliated center, recently published a report providing insight into how communities can collaborate with large employers to design workforce development programs and symbiotic supply chains that promote vibrant local businesses.
3. Shop Local
Shopping local small businesses helps the economy. According to studies, for every PS1 spent at a local business, 63p stays within it compared to only 40p when spending in chain stores. Furthermore, these local companies tend to purchase services and products from other local providers, further stimulating economic activity in your community.
Furthermore, these businesses can provide more tailored products to the community because they understand your needs better than large businesses can. Furthermore, they often have lower prices as they don’t incur as many overhead costs and they support local artists and events by sponsoring activities within it.
These local business owners and employees may become your friends and neighbors as you go grocery shopping together or wave when collecting mail – these relationships play a key role in strengthening communities by contributing to its social fabric.
Communities can encourage local shopping by adopting policies to support economic diversification and reduce concentration in large retailers, including Formula Business Restrictions, Set-Asides for Local Retail, and Local Purchasing Preferences. They can also foster environments which facilitate walking or bicycling to nearby small businesses through providing sidewalks, parking spaces, multi-story or mixed-use developments and walking or cycling paths.
4. Volunteer
Not only can corporate volunteering programs strengthen local economies, but they can also strengthen employee connections to and commitment to the business. Studies suggest volunteering improves employee well-being, helps individuals realize a sense of purpose, and enhances work performance. A strong local economy also attracts job seekers drawn by its values and commitment to its community.
Local economies rely on circular economic systems that recycle wealth and resources within a community. When customers dine at locally owned restaurants, they contribute to local economies by purchasing groceries or supplies at local grocery stores or farmers markets; the profits made from this spending then reinvest back into these businesses by hiring residents of the community or purchasing goods and services from nearby suppliers and vendors.
Studies demonstrate that counties with higher percentages of locally owned small-scale businesses experience greater economic growth. This may be attributed to their propensity to recycle more of their revenues into local economies and create more employment than chain stores.
Companies should take great care not to overdo their corporate volunteer programs. Overemphasizing these programs may make employees feel pressured to participate; research indicates they resent when managers force or encourage participation in charitable activities that don’t align with their personal beliefs and passions.
