Why you should support and prefer small businesses
How much do we think about how and when the money that we spend comes back to us. Do we think about how our spending shapes our world and those in power. Are we aware of the fact that small companies have a direct impact on our lives and well-being of the region.
More people will benefit
While consuming the products and services of the large corporations then mostly a small number of people will share the profit. If you give priority to small businesses, then in all likelihood your purchase supports a family or a region. If you prefer large corporations, probably your money travels to Wall Street investors or to a large company’s account. In the worst case the money will just settle on the account and will not benefit others anymore. In any case, the corporate power will grow along with the money and that will increase inequality in society, because the large amount of people will hand their own money to the small amount of people. The choice is whether we have one owner who takes great profit alone, or more owners among whom the profits are more equitably distributed.
Money doesn’t move out of the area
If you prefer products and services of the small business, then the money will not go out of that region, which supports the development of both the region and the people living there. When money moves out of the area, you are never sure if this money comes back to the region. The biggest problem of money moving outside of the region is sales loss of local businesses, loss of productivity, and the resulting unemployment. If the money doesn’t come back to the same area, it shrinks the region's economic activity, which in the long run kills the human activity in the region. Think about how difficult it is to bring back the money that went to Wall Street to the region in which you live.
The money comes back to You
Money that doesn’t go outside your area of activity is more likely to find a way back to you. The farther your money goes, the longer the journey is to get back in your pocket. Even if you have a steady job and a guaranteed monthly income, funds may be withdrawn from the region. Which in the long run will lead to the possibility that your employer ceases operations due to the falling sales because of the region's purchasing power is not enough to support those businesses. The exporting firms have less to do with regional problems, of course, but in case of region's extinction, they are in the same position as all the others.
Greater equality and balance
The more firms, the more evenly distributed customers, sales, revenues and profits. If we had only one big company offering a full range of services and products it will move the entire profit to only one of the owner or owners. If there are more firms there is more owners and the profits are more equitably distributed to the businesses and workers. If you constantly bring the money to one place, the end result will be that all the others are lacking the money or have very little. Think about it: profit is taken from every purchase which means that with every purchase the amount of money from where the profit is taken is shrinking. Daily, it is difficult to discern, but the long term implications of this are very clear. Thus, if there is bigger number of companies, the profits will be divided more equally in a social perspective.
The closer the better
In terms of products and services the priority should be given to domestic companies and the closer to home the better. This is a shortest way for your money to get back in your pocket. If you buy a product from a distant land, the money is divided among a greater number of firms - the manufacturer, transport, importer, distributor, retailer, etc. This means that your money is spread out around the world and reaching back to you is even more complicated because each party takes its profits and gains which generally remains in place. This is a much longer journey for your money than just to buy from a local business.
Originality and differentiation
Think of how boring the world would be if all the people would wear the exact same set of cloth, which is made by a single company. Yet, people buy products that are produced in quantities of millions. Thus, quite often happens that some of us own exactly the same item of clothing, phone, a car or a kitchen table that our friend or colleague has. If you consume products of small businesses, you can be sure that the product has something premium or special that will shine in the middle of a gray mass. Life would be much more interesting if people admit to themselves that we are all unique, special and each one of us is a bit of a sort. Products of a small companies are a good way to bring a little spice and originality to everyday life.
Last update: 2015-10-16 (Y,M,D)