Small Business Toolbox: Why Small Businesses Matter to Our Communities

 May is Small Business Month, a fitting time to reflect not just on the economic footprint of small enterprises, but on their distinct long-term approach to building value—in contrast with the short-term financial incentives that drive most large corporations. Small businesses do more than sell products or provide services—they show up for their communities. They hire locally, treat employees like people rather than numbers, and often create spaces where customers feel recognized and valued.

Across the U.S., small businesses make up 99.9% of all businesses. They employ nearly half of the country’s private workforce and are responsible for two out of every three new jobs. But beyond the numbers, small businesses play a unique role in building local economies and social trust.

Many small businesses invest in their workers in ways that go beyond a paycheck. They’re more likely to offer flexible scheduling, opportunities for growth, and work environments where people feel seen. They don’t just hire workers, they shape our communities.

When you shop at a small business, you're also supporting a different kind of economy—one that keeps money circulating locally. According to a study by American Express, 67 cents of every dollar spent at a small business stays in the local community. That money supports local suppliers, helps pay local wages, and contributes to local taxes. In contrast, shopping at large chain stores returns only about 11 cents per dollar to the community.

The difference matters. Dollars spent locally can mean better-funded schools, more responsive city services, and stronger networks between businesses. Small businesses also support other small businesses—restaurants buy from local farms, shops source from nearby makers, and service providers refer each other. These connections build a more resilient and self-sustaining economy.

There’s also a social value in shopping small. Local businesses often foster relationships. Whether it’s a chat at the counter or being recognized by name, these small interactions matter—especially in a time when loneliness and disconnection are growing. One customer in line ahead of me at a local bakery recently put it simply: “I’m just here to be seen.” That kind of experience doesn’t happen at a self-checkout machine.

Small business owners are often the people who show up for the school fundraiser, who know their customers by name, who hire the teenager from around the corner, and who stay open late during storms because they know someone might need them. These actions create loyalty and community trust—but they also take time, effort, and a belief in long-term relationships over short-term profit.

That’s something large corporations struggle to match. Most big companies are driven by quarterly earnings and shareholder demands. Decisions about staffing, pricing, or store closures are made far from the communities they affect. They rarely invest in long-term relationships unless they can show a direct bottom line impact right away (and here at EA, we have been lucky to work with some visionary larger businesses that break this mold). Small businesses, by contrast, invest because it’s the right thing to do and because they plan to stick around.

It isn’t always possible to shop small. Prices may be a little higher. The selection may be more limited. But when we can make that choice—even occasionally—it has a lasting impact. It helps sustain jobs with dignity, encourages businesses that care about their place in the world, and keeps our communities from becoming interchangeable, faceless retail corridors.