Why You Should Care if Small Businesses in Your Area Are Struggling

Small business closures are bad news all around.

During the pandemic, many small businesses were pushed to the brink when stay-at-home orders were enacted and non-essential establishments were forced to shutter on a temporary basis. Even though small businesses were entitled to various forms of aid at the time, including PPP loans that enabled them to keep up with payroll expenses, many local establishments came close to shutting down for good in the year-long period following the COVID-19 outbreak.

But the small businesses that survived that blow aren't necessarily thriving today. Labor shortages have been making it difficult for small businesses to operate. And in recent months, local businesses have been buckling under the weight of inflation.

Just as everyday consumers are racking up massive credit card tabs to keep up with essential expenses, so too are small businesses spending more money than ever to procure goods, pay staff, and cover their overhead costs. And many of those businesses are still at risk of closing -- even though it may not seem that way.

If you have small businesses in your area, it pays to support them as much as you can. You might think that small business closures won't matter to you individually. But actually, they could impact you more than expected.

Keep those businesses alive

If your favorite cafe or bookstore in town is forced to close, you're apt to be pretty upset -- and so you may be inclined to support it in an effort to prevent that from happening. But if there's a clothing store down the block you hardly ever set foot in, you may not care too much about the financial health of that business.

Here's why you should, though. For one thing, small businesses tend to pump more money back into their respective communities. A small business in your area is likely to procure supplies from other small businesses, thereby contributing to their success. And small businesses also pave the way to more local jobs.

Plus, if small businesses shutter in short order, it can lead to lower property values. If you're a homeowner, that's not a good thing.

On the other hand, thriving small business communities tend to attract other businesses looking for a home. Say your town could really use a vegan restaurant. If local businesses are doing well, a vegan chef with a business concept searching for space might be drawn to your town. But if 20% of the businesses in your area are boarded up and abandoned, that chef might run the other way and take their idea to another town.

That's why it pays to push yourself to support small businesses as best as you can. That doesn't mean you should spend money on things you don't need or want. If you're a vegetarian, you don't have to frequent the steakhouse down the block. But if you commonly order crafting supplies for your kids from Amazon, you may want to get them from the shop in town -- even if that means paying slightly more for your purchases.

Do your part

Small businesses rely on locals to stay afloat, and supporting them is a good way to give back to your community. And if you don't have the funds to do so, help out in other ways. Promote your local bakery on your social media page and encourage friends from nearby towns to check it out. There are ways to drive revenue into local establishments without spending money you don't have, and if you're willing to put in the time, your efforts could go a long way.