Why It's Important to Support Small Businesses

It’s National Small Business Week, and as a small business who provides financial management to Austin’s entrepreneurs and small business owners, you better believe we’re celebrating! As if the creativity, innovation, and community that small businesses foster aren’t enough reason to be grateful for these hard-working entities, small businesses are also essential to the American economy. The Small Business Administration defines a small business as a company with less than 500 employees, which means that there are nearly 31 million small businesses in the United States which accounts for 99.9% of all US businesses.Businesses with less than 100 employees account for 98.2% of all US businesses, and businesses with fewer than 20 employees account for 89% of all US businesses. Small businesses employ 47.5% of the country’s workforce, or 58.9 million people, creating about 1.5 million jobs every year. That’s a lot of statistics and numbers to convey a simple idea that you probably already knew intuitively, which is that small businesses are truly the lifeblood of the American economy. Small businesses also help to create America’s culture of innovation and individuality. This is certainly reflected in our own community here in Austin. You don’t have to look further than the genesis of the city’s unofficial slogan “Keep Austin Weird” to understand how small businesses contribute to a creative and interesting culture. Even the 0.01% of large businesses once started as small businesses - in its early stages, Amazon only had 11 employees. So it goes without saying that every single thing you see around you - every product, service, or innovation - exists thanks to a small business. The economic impact of COVID-19 took a devastating toll on many small business owners throughout the world. Some of them unfortunately even shuttered for good. Despite the trials of 2020, many small businesses were able to survive thanks to PPP Loans and other creative efforts on the parts of their owners, and now, more than a year later, we’re seeing that even a global pandemic can’t extinguish a founder’s spirit: about 4.3 million business applications were filled out in 2020 - which was up 24% from 2019. So, in honor of National Small Business Week and in support of our American economy, workforce, and entrepreneurial spirit, we wanted to suggest a few tips for supporting these small businesses that have given us so much. 

1. Give them your business. OK, this is obvious, but it bears repeating. In addition to shopping local and supporting local restaurants, get acquainted with all of the small businesses in your immediate community. Whether it’s a gym, a professional service, or recreational activity, there’s likely a few founders doing cool things in industries that you haven't considered shopping small in yet. You can also engage with your favorite businesses in new ways, by attending their community events or branching out to try a newly launched product, for example.
2. Buy products or gift cards as presents for your loved ones, buy and wear merch, and share the brand with other people by word-of-mouth recommendations. These are a few simple ways that you can advertise for your favorite small businesses, which gives them a chance to earn another lifelong customer. 
3. Writing reviews and engaging with / sharing their social media posts are a couple free ways to support small businesses. This not only encourages curious consumers to give the company a chance, but it also contributes to the community that the business is creating. 
4. Express gratitude. Let small business owners know that you recognize their hard work and you appreciate what they’re doing for our community and economy at large. Entrepreneurs build companies because they are passionate about their work, so a kind word of gratitude and appreciation will mean a lot to them. 

However you decide to show your support, make it a point to invest in our Austin community this week! If you’re a small business owner, we know that you have a lot on your plate - especially in the wake of such a challenging year. As small business owners, the NEST Team is committed to helping Austin’s leaders and doers manifest their financial goals, and that includes their business goals. Whether you have a question about payroll, taxes, growth and development, or launching a brand new venture, we want to help you find creative solutions to your entrepreneurial needs. Reach out at info@nestfinancial.net for a no-obligation consultation. Find us on:LinkedIn  Facebook  Yelp  TwitterDISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.