How to Support Small Business in 5 Effective Ways

Small businesses are the backbone of the U.S. economy, comprising 99.9% of all firms and employing 47% of the private-sector workforce.Despite their significant role, many small businesses face challenges that threaten their sustainability. For instance, 23% of small business owners cite lack of capital or cash flow as their primary challenge.

Additionally, 20% of new businesses close within their first year. Given these challenges, it’s crucial to understand how to effectively support small businesses. This article outlines five practical strategies to bolster small enterprises, ensuring their continued contribution to innovation, employment, and economic diversity.

1. Shop Local

Supporting small businesses by shopping locally is one of the most effective ways to sustain the local economy and foster community growth. According to a 2022 survey by the National Federation of Independent Business (NFIB), more than 60% of small businesses reported increased community support helped them navigate post-pandemic recovery. When you choose to shop at neighborhood stores or local markets, your spending directly contributes to their survival and growth, creating jobs and stimulating economic activity.

Shopping locally enhances community ties, as small business owners often reinvest their earnings into local projects, sponsor events, and support other local services. These businesses offer unique products and personalized services that larger chains often cannot match, providing an experience that celebrates the community’s character and culture.

To effectively shop local, consider the following approaches:

• Prioritize Local Retailers: Visit local stores for everyday purchases such as groceries, clothing, and home goods.
• Explore Local Markets and Fairs: Farmers’ markets and craft fairs showcase regional artisans and food producers, offering fresh and unique items.
• Purchase Gift Cards: Buying gift cards from local shops provides immediate support and encourages future visits.
• Choose Local Services: Opt for local service providers, such as independent repair shops, landscaping businesses, and family-owned restaurants, over national chains.

By prioritizing local shopping, you can contribute to your community’s vibrancy and help sustain a robust local economy.

2. Spread the Word

One of the most effective, low-cost ways to support small businesses is to spread the word about them. Recommendations from friends and family carry significant weight, especially in smaller communities or niche markets. According to Nielsen, 92% of consumers trust recommendations from people they know over any other type of advertising. By actively sharing your positive experiences with local businesses, you can contribute to their growth and visibility.

Ways to spread the word include:

• Talk to Your Network: Share your favorite local businesses with friends, family, and colleagues. A simple recommendation can lead to new customers.
• Use Social Media: Post about your experiences at local businesses and tag them in your content. This type of user-generated content can increase their reach and attract new patrons.
• Join Online Community Groups: Platforms like Nextdoor or Facebook Groups allow you to share recommendations with your local community.
• Leave Reviews: Take a moment to write positive reviews on Google, Yelp, or other review platforms to enhance the business’s credibility and appeal to potential customers.

Spreading the word creates a ripple effect, drawing in new customers and building a loyal base for small businesses. These small actions can significantly impact a business’s reputation and growth, fostering a sense of community support and shared success.

3. Social Media Support

Supporting small businesses through social media is an impactful way to help them thrive and reach a broader audience. According to the Amex Trendex 2024 Small Business Edition, 57% of small businesses reported creating a social media profile for their business in the past 12 months, and nearly one-third (32%) did so for the first time. This demonstrates how crucial social media has become for small business visibility and growth.

To support small businesses through social media, consider these strategies:

• Follow and Engage: Follow local businesses’ social media accounts and engage with their posts. Liking, commenting, and sharing can expand their reach to a wider audience and attract new customers.
• Share Positive Experiences: Create and share content that highlights your experiences with local businesses. Use hashtags and tag the businesses to boost their visibility.
• Join Social Media Campaigns: Participate in community campaigns that promote small businesses, often using specific hashtags to amplify collective support.
• Collaborate on Content: Work with local businesses on social media collaborations such as giveaways or joint Q&A sessions. These partnerships can introduce new audiences to their brand and foster community support.

Social media engagement can significantly impact small businesses’ growth, providing them with the visibility needed to compete and thrive in today’s market.

4. Collaborate on Events

Collaborating on events is a powerful strategy to support small businesses and strengthen community ties. According to a 2023 survey by UpCity, 82% of small and medium-sized businesses plan to host five or more marketing events in 2024, up from 73% in 2023.

This increase highlights the growing recognition of event collaboration as a means to boost visibility and customer engagement.

Consider these ways to collaborate on events:

• Co-Host Community Gatherings: Partner with local businesses to organize events such as street fairs, workshops, or seasonal festivals. These events provide platforms for small businesses to showcase their products or services to a broader audience.
• Sponsor Local Activities: Support local sports teams, art exhibitions, or charity events. Sponsorship not only promotes the business but also demonstrates a commitment to the community.
• Participate in Farmers’ Markets or Craft Fairs: Engaging in these events allows small businesses to reach customers who value local and artisanal products.
• Offer Venue Space: If feasible, provide space for community events or meetings. This can increase foot traffic and introduce new customers to the business.

By actively participating in and supporting local events, small businesses can enhance their visibility, build relationships with customers, and contribute to a vibrant community atmosphere.

5. Gift from Local Vendors

Gifting from local vendors is an impactful way to support small businesses while introducing unique, high-quality items to friends, family, or clients. Choosing gifts from local artisans, boutiques, and small-scale producers not only boosts their revenue but also broadens their customer base. Research from Empower indicates that a significant number of shoppers appreciate the personalized experiences offered by small businesses, favoring them over larger national retailers for unique and meaningful gifts.

To make the most of gifting from local vendors, consider these tips:

• Research Local Options: Explore farmers’ markets, craft fairs, and local online platforms to discover unique, handmade gifts that reflect your community’s creativity.
• Emphasize Quality and Uniqueness: Highlight the care and craftsmanship behind locally made products, which often stand out compared to mass-produced items.
• Create a Story: Share the background of the vendor or artisan when presenting a gift to add a personal touch and increase appreciation.
• Collaborate for Customized Gifts: Work with local vendors to create personalized or branded items for business gifting, strengthening your community connections and showcasing local talent.
• Encourage Word-of-Mouth: Ask recipients to share their experiences on social media or through word-of-mouth, driving more traffic to local businesses.

Gifting from local vendors not only supports their growth but also promotes community engagement and awareness of local craftsmanship.