Lately, you might be hearing a lot about many nations across the globe promoting small businesses, right? But why is that though? See, there are certain benefits of encouraging small businesses to keep on doing what they do best, and there are some reasons for that. And if you are kinda intrigued about just that, and want to know why small businesses are important to a country’s economy, then you should keep on reading today’s post because that’s precisely what we are onto today. Alright, let’s get started with just that then, shall we?
1. They’re Like Job Factories, Especially When Times Get Tough
One of the biggest contributions that small businesses actually make to a country’s economy is for sure creating more and more jobs, even when times are a bit rough, you know? Want proof of that? Well, just recently, when every nation on the planet was hit by COVID-19, it was the small business scene that was still producing jobs whereas all the big corporations were limited because of a bunch of rules and regulations. But how exactly did the small business do that, how do they bounce back so fast? Well, again, the reason for that lies in the nature or should we say the “size” of such businesses. A big corporation or business must take big steps to keep on going smoothly in the rough times, but on the other hand, it is actually small steps that small businesses take because of their size and not thousands of people working for them, right?
2. They’re the Kings of Coming Up with New Stuff and Shaking Up the Market
When it comes to innovating new stuff, small businesses are always out there trying different things, and cracking up the solutions for newer or even age-old problems. See, when we talk about big businesses and mega-corporations, they’re like already on top, and just improving their products and services. And most of the time, they are not even innovating anything at all, which is exactly the opposite of small-scale businesses, don’t you think? Like, the majority of the time, when a small business hits the market, either they sell what is already selling, or they find out what customers want and do something new. Both things usually do wonders for them, as long as there is demand for whatever they are selling, but if they are coming up with something new that the market has never seen before, the chances of them getting a huge amount of attention from the customers increase significantly.
3. Opportunities for Individual Entrepreneurship and Professional Growth
If you have that entrepreneurial spirit burning inside you, you can’t just work at a mega-corporation behind the desk and expect to do something with that in the long run, like something revolutionary for yourself, right? So what do you exactly do though? Yes, you hit the market yourself, try to figure out what people want, and then deliver that with top-notch quality and trust. And if you do that, congratulations, you are now stepping into the small business territory, and that is precisely what happens with a lot of people, despite which nation you belong to, you know? Or it could be that you have decided to work for a small business and that turning out to be a pretty good decision because now you are getting to test your entrepreneurship skills and up a notch professional growth, right? Well, if that is happening with a lot of folks in a country, no wonder the economy will get a boost in the long run. Get it?
4. Contribution to National Economic Activity and Resilience
See, when a nation is too much dependent upon mega-corporations, it is not a good thing at all. Let’s say some of such big businesses or mega-corporations take a hit, it’ll be the country’s overall economic health that’ll take the hit too. Remember when the recession hit in 2007 and 2008? That’s precisely what happened during those times. Thankfully, many countries are realizing that by now, take the USA for example, they have around 44% of the economic activity due to just small businesses, and working on the same concept is India, doing the same thing, like promoting small businesses, and in return getting the certainty that when they times are rough, these small businesses will work as cushions for the economy, you know?
5. Small Businesses as Catalysts for Larger Economic Ecosystems
Now, it is somewhat true that small businesses actually act like catalysts for larger or mega-corporations, and that’s how the whole system actually works, despite what country or nation you belong to. There are sometimes certain things that only small businesses figure out first and do better, and then the mega-corporation takes on the make that idea even bigger, which ultimately is a good thing for the economy. At first, you might think it is kinda unfair, but when you really think about it, and only then you find out that this is how things actually work. Like, literally, look around yourself, every small business that did super well, eventually transformed into a big or mega-corporation. That’s how things actually work in real life or the business world at least.
6. They Are More Than Just Money Makers
Lastly, we have saved one of the major benefits of small businesses to an economy, and it is not related to the green stuff, you know, the profits. Then what is it exactly? Well, the thing is, when we talk about making a nation’s economy grow, that is not possible just because of hard work and consistency. Nah, that may just be a part of it, but if the communities in a nation aren’t doing good, the economy will also not grow as fast as you might expect. So what exactly do we mean? See, small businesses are there to offer a bunch of jobs in local communities, which keeps the locals happy, working, and earning well. And if the majority of the people in a community are like that, the community will for sure thrive, and so will the economy. Right? So yeah, that’s that.
Conclusion
That’s all there is for now. And yeah, now it shouldn’t be that hard for you to understand why small businesses are a big deal in every part of the world, correct? Alright, we’ll see you in the next one then.
Anantha Nageswaran is the chief editor and writer at TheBusinessBlaze.com. He specialises in business, finance, insurance, loan investment topics. With a strong background in business-finance and a passion for demystifying complex concepts, Anantha brings a unique perspective to his writing.
