COMMENTARY: The importance of supporting local businesses
Since March, people around the world have experienced a whirlwind of effects stemming from the COVID-19 pandemic. The spread of the virus left people pinching their pennies and wondering whether recovery will ever be attainable. Furthermore, the unemployment rate for the United States swelled from 6.2 million in February to 20.5 million in May. In fact, Pew Research Center reports that unemployment rose higher within 3 months of COVID-19 than it did in two years during the 2007-2009 Great Recession.
The virus has taken a toll on our society, especially business owners. With stores closing early, temporarily, or even permanently, on top of the possible risk of contamination from public exposure, people have been forced to adapt to a new way of shopping and eating out. With so much change occurring this year, who can expect customers to remember what stores or restaurants are offering carry out, delivery, etc.? This limits options for the customer, and often leaves out businesses who have less of an audience to advertise alternative access. Because of this, local businesses need the support of a community to be able to stay open.
Establishments attempted to become flexible with how they run their business but suffered because of the confusion and a lack of people leaving their homes for anything nonessential. Moreover, researchers at Harvard concluded roughly 110,000 small businesses across America shut down permanently from March to May. This does not include the number of local businesses struggling through temporary shutdowns. With small businesses accounting for 44 percent of U.S. economic activity, these closures could devastate the economic growth of the United States. Because of this, a local business may be the perfect place to spend money.
There are several benefits to shopping locally. By shopping at a local business, one supports their local economy and keeps money within a community. In fact, for every $100 spent at a local business, $68 will cycle within the community. Local businesses also have a significantly smaller carbon footprint than larger companies, benefitting not only a community but the planet overall.
In addition, local businesses are owned and operated by other community members who also strive for the betterment of the community while offering a unique connection between employees and customers by establishing a personal experience. This shows through accountability to the local economy, community, as well as non-profits.
These factors lead to one key point: local businesses are vital for everyday life for the owners, community members, and economy. So, how can the community help? There are many ways for community members to aid local businesses. Customers can call local businesses and ask whether they are offering alternative access to their products like online, pick up, or delivery options. Purchasing gift cards and continuing memberships and subscriptions can also benefit businesses by receiving sales when business has slowed or halted.
For tipped positions, tipping 20% or more can help not only the company but employees who are struggling. Additionally, donating is extremely helpful to keep the business afloat. A lot of stores are also offering discounts during this time to create more business, so take advantage of those prices.
However, with many people currently going through their own financial hardships, there are also ways to help local businesses without spending additional cash. Leaving a good review and sharing or posting promotions on social media can bring more customers to the business and get the name trending within your community. With so much devastation occurring in 2020, everyone has dealt with economic frustrations and everyday personal matters. Because of this, not everyone can handle more on their plate financially, emotionally, physically or mentally. However, when affordable, helping a local business stay afloat can benefit everyone, including a community.
