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How Small Businesses Drive Economic Growth

9 Minute Read

There’s no doubt that small businesses are the backbone of the American economy. According to the U.S. Small Business Administration, small businesses account for nearly two-thirds of all new jobs created in the United States each year. But small businesses don’t just provide jobs – they also drive economic growth through the creation of innovative products and services, and we’re so grateful! In addition to working side gigs with us as independent contractors, many of the agents with Working Solutions (our PROs!) are also owners of other small businesses.

Let’s take a closer look at how small businesses and small business owners benefit our economy and communities. We’ll also explore some of the challenges that small businesses face and discuss ways to help them grow even faster.


What Is a Small Business and Why Do They Matter to the Economy

When we think of small businesses, we often envision thriving local shops, friendly neighborhood service providers, and passionate entrepreneurs fueling their dreams. These small enterprises not only enrich our communities, both local and online, but also have a significant positive impact on the economy. Small businesses employ over 50% of Americans who are in the workforce. As both employers and contributors to local and national economic growth, they generate job opportunities, drive innovation, and pay taxes that support public programs funding important social initiatives such as education districts, arts organizations, and other community-based activities.


The Benefits of Supporting Local Business

When we choose to support local businesses, not only do we contribute to the growth of our community, but we also create a sense of gratitude and connectedness. These small businesses often provide unique products and experiences that enrich our lives and cannot be replicated by large corporations. By investing in our neighbors’ endeavors, we are helping to preserve the character and charm of our communities, fostering sustainability and self-reliance for future generations. Furthermore, local enterprises frequently demonstrate a deep appreciation for their customers, fostering genuine relationships and providing unparalleled customer service. Together, by supporting local businesses, we build the foundation for a thriving community, united through a shared love and respect for our hometowns.


How Small Business Owners Help to Grow the Economy

Small business owners play an integral role in fostering economic growth and development. By establishing and nurturing their ventures, these entrepreneurial spirits contribute to job creation, employment stability, and increased goods and services production. Their businesses attract consumers on a local, regional, and global scale, leading to revenue generation for both them and their surrounding communities. Fostering an environment of creativity and innovation, small businesses often bring forth new ideas, products, and services, driving healthy competition that compels large companies to adapt and evolve. Collectively, small business owners inject vitality and vigor into the economy, contributing to its adaptability, resilience, and overall prosperity for years to come.

Young Black entrepreneur reviews his orders on a smart tablet within his small business cafe

Shutterstock; Photo by mavo

The Ways Small Businesses Help Support Their Communities

Small businesses have an incredible impact on their local communities, acting as a backbone that not only strengthens the economy, but also fosters a sense of belonging and supports community development in a multitude of ways. By creating job opportunities and driving local economic growth, small businesses enable communities to flourish and become more self-reliant. The unique and personalized services and products they offer contribute to the distinctive character and identity of a neighborhood, attracting visitors and promoting local pride. Additionally, small business owners often engage in philanthropic activities, sponsoring local events and donating to charitable organizations, further spotlighting the importance of giving back to the community that supports them. By nurturing a thriving and interconnected network of local enterprises, small businesses lay a solid foundation for prosperous communities.


The Impact of Small Business on Job Creation

Small businesses play an indispensable role in fostering job creation. As fresh ideas come to life and local entrepreneurs take the leap into building their businesses, they also contribute to growing and sustaining vibrant communities. With the majority of new job opportunities originating from these ventures, small businesses greatly support individual and communal economic growth. By nurturing the unique talents and skills of individuals, these establishments serve as beacons of innovation and incubators for future business leaders. In turn, as small business owners become successful and expand their operations, they also pave the way for the creation of additional job opportunities, effectively setting the stage for long-term economic stability and development.

Two women prune and arrange flowers and bouquets within the nursery of their plant small business

Shutterstock; Photo by Ground Picture

Challenges Faced by Small Business Owners & How We Can Help

If you’re a small business owner, you understand the power of hard work and determination: you know that running your own business is no easy feat and requires great amounts of energy and dedication to help it succeed.

Small business owners often face challenges as they navigate through the complexities of running a successful endeavor. One pressing concern is the constant balancing act between managing finances and investing in growth – a situation that can be exacerbated by limited access to resources, constantly evolving markets, and formidable competition. Additionally, staying up to date on technology trends and harnessing digital innovation can be an uphill task for many entrepreneurs, causing them to lag behind in their quest for growth.

We know how strong community support can play a huge role in the growth and success of small businesses. Because of this, Working Solutions is launching our new PRO Marketplace just in time for “National Mom and Pop Business Owners Day” on March 29th, 2023. Our PRO Marketplace is part of our growing PRO Community resources available to our active agents. The PRO Marketplace gives our independent contractors a chance to showcase their other small businesses with fellow PROs and connect on topics related to small business ownership and entrepreneurship.

By creating a platform where our PROs can share their business offerings, experience, and expertise with other PROs, or simply offer encouragement and understanding, we can all help support our PRO Community small business owners.

Interested in joining our PRO Community? Check out our available opportunities and apply today!

Small businesses and their owners are the lifeblood of our economy and communities. They play a critical role in job creation, propelling our economy forward, and helping to keep it vibrant. They provide goods and services vital to our communities, helping to drive growth, inspire innovation, and create an environment of positive progress. Let’s celebrate the achievements of small business owners everywhere – from those who are just getting started on their entrepreneurial journey, to the ones who have created success despite the odds. Whether you’re juggling two jobs, working around the clock to get orders out on time, or hustling to take your business to the next level – we applaud your commitment and entrepreneurial spirit that supports families, communities, and our economy as well. To those who are currently small business owners, what are your tips for other entrepreneurs?

Ready to start the search for independent contractor gigs?

Check out opportunities with Working Solutions available now and in a variety of industries – they’re all 100% remote with flexible schedules.