John is the cofounder and CEO of Pie Insurance. He’s been responsible for overseeing all aspects of Pie since it was founded in May 2017.
Small businesses—from your favorite hairdresser and local pizza shop to your go-to plumber and handyman—continue to face volatile times. They’re working to overcome inflation, labor shortages and supply chain challenges that come with a turbulent economy and the effects of Covid-19. Small businesses in 2023 are facing additional struggles.
• Historically, about 20% to 25% of businesses have failed within the first year, according to Bureau of Labor Statistics data.
• UBS Evidence Lab (via Markets Insider) found that “so far in 2023, private bankruptcy filings have outstripped a peak set in the early stage of the COVID pandemic by a wide margin.”
According to the U.S. Small Business Administration Office of Advocacy, nearly half (46.4%) of all U.S. employees are employed by small businesses, which employ over 61.7 million workers nationwide. Supporting small businesses can help drive the economy forward, stimulate the job market and strengthen communities across the country. So as a business leader, how can you be an advocate, and how can you encourage those within your company to support small businesses?
Honoring small businesses during National Small Business Week (which ran from April 30 to May 6 this year) is a great place to start. The U.S. Small Business Administration (SBA) has celebrated this week for over 50 years as a way to recognize the contributions America’s entrepreneurs and small-business owners make. During this week and beyond, leaders should consider the following ways to support local and small business owners. Last year, I wrote about ways your company can be a small-business advocate all year long—including through mentorship, shopping local and supporting small businesses from within your organization. This year, I’m adding a few more.
1. Pay using cash, debit or mobile payments for small purchases when you can. Cash flow is often a huge issue for small-business owners. Getting invoices settled on time, and without paying credit card fees, can ease some hardship for small business owners. While larger corporations typically have large cash reserves for essential payments that cover payroll, rent and insurance expenses, small businesses may not have the same resources on hand.
While workplace and employee injuries are covered under workers’ compensation insurance, small businesses need reserves for unexpected emergencies such as building repairs and technology issues. As you partner with small businesses, consider prioritizing cash and debit payments and the prompt payment of invoices, as much of these payments can go toward their essential and emergency business expenses.
2. Don’t be shy about hitting the share button. Top Design Firms found that 71% of small businesses have a website, which makes it easy for customers to share, like and post about them to support small businesses. While millions of consumers use the internet and search engines to discover products, restaurants and local companies, your personal and company social channels are also a great way to promote local businesses. In today’s digital world, social media has become an inexpensive way to help small businesses make significant strides in reaching and building their customer base. One follow, like or retweet from your business can go a long way toward helping them reach a wider audience.
Does your office roof look good after a local company repairs it? Share a review on the roofer’s community Facebook page. Did your favorite bakery knock your company’s anniversary cake out of the park? Include the bakery’s handle in an Instagram story. These are quick and easy ways for your company to amplify a small business’s presence and hopefully bring some customers through the doors. Just as you might acknowledge an employee’s stellar work, doing so with the small businesses in your backyard can go a long way.
3. Attend local markets and events with your team. Many artists, bakers and farmers receive revenue from setting up shop at local markets and events. While this is more prevalent in some communities than others, these pop-up events can be major opportunities to support your local business owners. These types of markets were also put on hold during the pandemic, so many are making up for lost time. The next time you see a flier for a farmers market, an artisan pop-up or even a networking event that a local business is hosting, make the effort to go and bring your team along.
4. Put your money where your mouth is. Last year I shared ways you can support small businesses from within your organization, but it’s also important to support them externally if you can. For example, my company serves small businesses, and this year, we are proud sponsors of National Small Business Week. It was important to us to celebrate their hard work on a local and national level. Are there local events you can sponsor or that your team can volunteer at that benefit businesses and organizations? Reach out to your local chamber of commerce and see how to get involved. When it comes to budgeting, set aside some of your company’s funds to put back into your communities. No matter who your business’s customers are, your local community will value the support you can provide.
Instead of defaulting to shopping online or a big-box store for your business’s purchases, ask yourself what small changes you can make along the way that can ultimately make a big impact. While they’re often overlooked and undersupported, small businesses need us more than ever, so no action is too small to uplift the backbone of the U.S. economy.
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