Support Local Businesses: It's More Important Now More Than Ever. Here's Why

July 16, 2020

One critical part of the economy that has especially felt the effects of COVID-19 is small businesses. They remain vital to thriving communities as they create opportunities for new talent and growth regionally, energize the economic base, and foster an entrepreneurial spirit in community members.
According to the U.S. Small Business Administration Office of Advocacy, small business contributed to nearly 1.9 million jobs across Michigan in 2019. 
Why shop local?
When purchases are made at locally owned businesses, significantly more money stays in a community. According to the U.S. Small Business Association and the U.S. Department of Labor as reported in this blog, the positive impacts of small, independent business on local economies include:
  • For every $100 spent at local businesses, $68 stays in the community
  • Small businesses have accounted for 65% of all new jobs over the last 17 years
  • Local businesses use the services of other local businesses
In addition, small business owners are more likely to support the community through partnerships among neighbors, residents, other small business owners, community leaders, and schools. These partnerships result in sponsorships, school fundraising events, and more.
How you can help

You can help by shopping local. For example, you can order carry out from a local restaurant; purchase a gift at a local shop; visit a local nursery or hardware store for flowers or a new ladder; take your car to a local mechanic; or visit a local farmer’s market.

You can also participate in MSUFCU’s Eat Local Giveaway. This month, we’re highlighting locally owned and operated Black and LGBTQIA+ restaurants. When you order at any local restaurant from now until July 31, submit a photo of your meal (takeout bag counts!) in the comments of our Facebook page. You will be entered to win two $25 gift cards — one for you and one to pay it forward to someone else.
The more you order from local restaurants, the more chances you’ll have to win! One winner will be randomly selected daily. Full details can be found here.  

Where small businesses can find help

Small business owners can apply for loans and grants through federal and local governments as well as state-run economic organizations, such as the Michigan Economic Development Corporation. Many financial institutions are also offering assistance, including MSUFCU which recently introduced its Back to Business Loan to further assist small, Michigan-owned and operated business. To learn more about this loan, click here.

Tags: Community, Tips and Tricks