Photo by Tim Mossholder on Unsplash
Small businesses are one of the most important parts of the US economy yet the American government and its citizens hardly show them any support. Although large companies frequently receive the most attention from the media, small companies provide a substantial number of new employment opportunities and bolster local communities, supporting innovation within those communities. While government programs such as small business loans, grants, and tax incentives exist, many business owners continue to face challenges such as rising rents, high operating costs, taxes, inflation, and competition from large corporations. The following reasons demonstrate why the United States should do more to protect and support small businesses.
First, small businesses create the majority of new job opportunities. Many jobs in America are held by individuals working with small businesses rather than large corporations. By hiring workers from within their communities, small businesses provide opportunities to enter the workforce for many people, including teenagers, first-time workers, and individuals who have not completed an advanced degree. Whenever a small business starts operating in our neighborhood (usually in the form of a new restaurant, mechanic shop, or clothing store), it adds to the number of jobs available in the community. Large cities like Los Angeles and Dallas depend on small businesses to keep economic activity going in these cities. If small businesses fail, many people and their families will be hurt severely by losing their jobs, and their local areas will suffer as well.
The second reason that small businesses should be supported is that they tend to keep money in their local communities. Purchases made at a small retail outlet instead of a large chain company keep so much more revenue in the town/city of purchase than the same purchase would yield had made at a national chain. In many cases, local business owners utilize their profits to shop at other small retailers in their area, employ local job seekers, purchase from their local suppliers, and support local events through sponsorship of local schools and sports teams.
In addition to contributing to community development, another reason why more support should be provided to small businesses is that they are a huge source of innovation. Most of the large corporations today began their business operations as a small, entrepreneurial business. For example, Apple started in a garage with very few individuals and a large vision, and Amazon started as a small online bookstore. These examples highlight how even small concepts can become extremely large successes. If small businesses do not receive the support they need from this nation, the nation could potentially miss out on future creative and innovative concepts.
However, small businesses experience significant difficulties. They often encounter high rent, high tax, and strong competition from larger companies. Large businesses usually possess larger amounts of money, are able to employ more individuals, and have a greater marketing budget, allowing them to market their products better than a small company. Therefore, it is very difficult for small company owners to successfully compete with large corporations. Small businesses tend to be among the first entities that are negatively affected during times of recession or slow economic growth.
Thus, the government needs to provide equitable tax legislation, support low-interest loans, and create programs to assist in the protection of small businesses. Fair tax policies can reduce financial pressure on small business owners, allowing them to invest more money in hiring employees, expanding operations, and improving their products and services. Low-interest loans and support programs can provide the funding needed to help businesses grow, recover from economic hardships, and remain competitive against larger corporations.
Many people argue that a large corporation has more value because it produces more employment opportunities when compared to a small corporation. Although large businesses have an impact on the economy, the overall contributions made by the countless small businesses create an enormous number of job opportunities and provide an essential diversity to the marketplace. Without the contribution of small businesses, no community would flourish and prosper.
To sum up, the consistent success of small businesses directly affects the thriving of the economy of the United States and should, therefore, be supported to an even greater extent than they are currently being supported. Small businesses represent job creation, community development, and innovation in the life of our society. Americans can help keep small businesses healthy and succeed, and increase their opportunities for further growth by doing business locally and supporting local tax policies that benefit small businesses. Supporting small businesses is good for both your community and the country as a whole.
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