How important is the strength of local businesses?

Have you ever heard about the importance of strengthening the enterprises in your region or city? When a local business develops, there is usually more income generation, which is reflected in the growth of other businesses and operations – this is the purpose of the circular economy.

Happy small business owner at a plant shop

What does strengthening local businesses have to do with circular economy?

Small businesses create jobs and stimulate income circulation. In addition, they keep people in smaller cities and stimulate local economic growth. With this, the entire region develops, once with more jobs, the population’s purchasing power improves, boosting commercial relations as a whole. And the circle goes round again.

For this to happen, it is important that consumers value companies that operate regionally, preferring their products and services. A strong local business stimulates entrepreneurship and promotes important improvements for the entire region. Want to know more about the topic and understand how to be part of this regional economic cycle? Then follow our post!

Learn why the growth of local businesses directly affects your pocket

As explained above, the development of local business contributes to the strengthening of the regional economy with a better distribution of income. When a particular company grows and, as a result, increases its workforce – more people residing in the area have jobs and income. Consequently, there is a greater number of consumers of other products and services – after all, the employed people gain purchasing power to acquire various goods.

Everyone benefits

This cycle contributes to the local economy continuing to turn and benefiting everybody. Besides the improved business environment for entrepreneurs, local consumers are also winners: more jobs are created, the supply of products and services increases, and the quality of life too. It is worth pointing out that this business turnover is not only important in smaller cities or regions that are more distant from urban centers.

Your neighborhood, for example, can also benefit from its local businesses

  • when you buy from a small local business, you help in the development of that business, encouraging entrepreneurship and creativity;
  • small businesses feel stimulated to diversify their offer of products and services and to invest in innovation and technology;
  • local businesses begin to realize the importance of good service and start to invest in the qualification of their workforce;
  • small entrepreneurs tend to hire local employees and support community actions, such as social or environmental campaigns;
  • with the strengthening of neighborhood businesses, the logistical cost of local commerce is reduced, increasing the competitiveness of companies and their products;
  • the growth of local businesses also increases the value of your property. Usually, the existence of diversified commerce in the region (with schools, bakeries, shopping malls, hairdressing salons, among others) tends to raise the price of the square meter in the neighborhood, which also increases the value of your property.

For the same reason, the commerce background of your enterprise is also valorized with the increase in the offer of products and services. After all, the more people circulate in the neighborhood, the greater the chances that they will get to know your brand and, therefore, buy your products.

All these aspects reflect in new opportunities for the community. Professional training courses, technology suppliers, and other activities necessary to meet the demands of the growing companies emerge. In addition to all this, the residents can now count not only on a greater supply of jobs, but also on higher quality services and products.

Check out how to promote a local business

Besides preferring the neighborhood commerce when buying products and services, there are other actions that contribute to the growth of local businesses. Do you have a small business in the region? Then give preference to hiring local labor, choose regional products, and buy from suppliers in the neighborhood. Every enterprise demands some inputs, from the most basic to the most specific, which can be acquired regionally. Also choose to advertise your business in physical media, with greater potential to reach the local population.

Even if the variety of products and services is limited, or the costs are higher, it is still worth buying from the neighborhood. You save travel time and reduce freight costs, among all the other positive aspects.

In addition, you contribute to creating local opportunities and promote the circulation of income in your neighborhood or region. Here are some ideas to involve the local community and strengthen regional businesses:

  • participate in regional actions, such as campaigns for social aid or local events; contribute to causes in your city or neighborhood;
  • offer workshops (related or not to the main activity of your business) that can contribute to the empowerment of the community. You can promote short courses in recycling, cooking, labor training, or other volunteer actions aimed at the needy community. Invite other entrepreneurs to participate in the actions and work together;
  • promote some lecture cycles with local entrepreneurs, inviting specialists from the region who can share their knowledge with the participants. In these events, good ideas, partnerships, and interesting businesses always emerge;
  • make partnerships with other local enterprises, stimulating the so-called collaborative economy, in which businesses complement each other, with mutual gains.

As you have seen, strengthening local business makes all the difference for regional development. Besides stimulating entrepreneurship, this good neighbor policy contributes to improve the circulation of income and generates wealth for the entire neighborhood or city, contributing to the sustainable growth of the region. So, the next time you need groceries, books, a present for a friend, a drugstore, why don’t you stay within your neighborhood lines?

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