7 Ways to Support Local Small Businesses

Support small local businesses It's more than just a business transaction: it's about boosting the local economy, supporting families and promoting a more sustainable economic cycle.

With the proliferation of large corporations and the growth of online shopping, many small businesses are struggling to compete.

However, there are several ways to strengthen these businesses and ensure they thrive amid competition.

Here are seven ways you can actively help your community with simple but impactful actions.

1. Buy directly from small businesses

One of the most effective ways to support small local businesses is to buy directly from them, rather than going through large retail chains.

In addition to ensuring that money circulates within the community itself, you help keep these businesses alive and competitive.

The American Independent Business Alliance revealed that for every dollar spent at a local business, about 48% remains in the local economy, while for large chains that figure drops to 14%.

Furthermore, small businesses often offer differentiated and often personalized products, which provides a unique consumer experience.

Imagine swapping the standard coffee from a big franchise for that special one made in a neighborhood coffee shop.

The quality is generally superior, and the service is more personal and humanized.

Another crucial point is the seasonality of the products. Local stores usually work with regional and fresh products, especially in the case of food markets.

By choosing a neighborhood grocery store or local farmer's market, you have access to food produced in your region, which values local farmers and promotes sustainability.

2. Share on social media

With the power of social media in our hands, one of the most effective and free ways to support small local businesses is sharing your experiences.

According to HubSpot, 711% of consumers are likely to purchase a product or service based on recommendations on social media.

This type of organic marketing is incredibly valuable for small businesses that don’t have large budgets for paid advertising.

A simple post praising the service or quality of a product can reach hundreds of people, generating curiosity and, consequently, new customers.

Additionally, it is possible to leave reviews on platforms such as Google Maps, Facebook or Yelp, which increases the credibility and visibility of these establishments.

The power of “digital word of mouth” should not be underestimated. Studies show that online reviews directly influence consumers’ purchasing behavior.

So by sharing your support, you are not only recommending, but also helping to build the reputation of these businesses.

+ How to use social media to win customers?

3. Attend local fairs and markets

Local fairs and markets are valuable spaces to find exclusive and innovative products, as well as providing a unique shopping experience.

These fairs strengthen regional trade and encourage local entrepreneurship.

For many small producers, these events are one of the main sources of income, being a true thermometer to measure the acceptance of their products.

According to the Sebrae, Local fairs in Brazil generate around R$30 billion per year, representing an important share of the local economy.

By participating in these fairs, you directly contribute to the growth of these entrepreneurs, who often have few sales channels.

Furthermore, these fairs promote interaction between consumers and producers, creating a relationship of trust and loyalty.

The consumer feels part of the process, knowing the origin of the products and the work involved in their production.

4. Prefer local services

In addition to products, local services also play a vital role in the community economy.

Hiring a plumber, electrician, gardener or graphic designer from your area, for example, circulates money among residents and helps generate local jobs.

Local professionals generally offer more personalized service, as their success depends directly on customer satisfaction.

According to Pew Research Center research, 771% of consumers prefer to hire local professionals when possible.

This demonstrates the trust that these service providers have gained in their regions, often based on word-of-mouth recommendations, which further strengthens their presence in the market.

Choosing these services not only helps the local economy, but also reduces the carbon footprint. After all, these professionals have to travel less, reducing the emission of polluting gases.

5. Support community causes and social initiatives

Many small businesses are actively involved in social causes, sponsoring local events or promoting social responsibility campaigns.

By supporting a business that is involved in the community, you are also helping to strengthen the social fabric of your area.

Several crowdfunding campaigns, for example, allow small businesses to stay afloat financially during crises.

The COVID-19 pandemic was a clear example of the importance of these initiatives, when many entrepreneurs resorted to fundraising campaigns to survive the drop in sales.

Additionally, many small businesses allocate part of their profits to support local projects such as schools, shelters and cultural events.

So when you buy from a socially involved company, you’re impacting much more than just the local economy; you’re supporting the well-being of the community as a whole.

6. Provide constructive feedback

Small businesses rely heavily on customer feedback to improve their services.

Unlike large corporations, which have teams dedicated to market analysis, small business owners often rely on customer feedback to find out what they can improve.

According to BrightLocal, 821% of local business owners say online reviews are critical to their business’ success.

If you have a positive experience or even a constructive suggestion, share it directly with the business owner or leave a review online.

This interaction helps the business to grow and better adapt to market demands.

Honest but respectful reviews can make all the difference for an entrepreneur who is just starting out and looking for ways to improve their products or services.

Additionally, by offering direct feedback, you establish a closer and more trusting relationship with the business owner.

+ 5 Examples of How to Thank Negative Feedback

7. Buy gift cards or gift vouchers

Finally, a practical and effective way to support small local businesses is by purchasing cards or gift vouchers.

These vouchers ensure that the business' cash flow remains stable, even during periods of low demand.

During the pandemic, this was one of the most used methods to keep restaurants and stores open, even with their doors closed.

Blackhawk Network has shown that 83% of people who buy gift cards end up spending more than the original amount when using the card.

Therefore, in addition to guaranteeing immediate revenue, these vouchers encourage future visits and increase the average purchase price.

This practice is also advantageous for those who want to give someone a gift, but without risking making a mistake when choosing the product.

By offering a gift card, you give the recipient the freedom to choose what they really want, while also supporting local businesses.

+ Entrepreneurship during the crisis: How to adapt your business to difficult times

Conclusion

Support small local businesses goes beyond a simple act of consumption.

Every choice you make has the power to transform your community, promoting a fairer and more sustainable economic cycle.

By adopting practices such as buying directly, advertising on social media, participating in fairs, and even offering feedback, you contribute to the growth and success of entrepreneurs who often depend on the support of their neighborhood.

As an anonymous author said: “When you support a small business, you are supporting a dream.”

Every small action counts and makes a difference in the future of these businesses and, consequently, in the future of their community.

Written by Nara Updated October 24, 2024