What’s the Best Way to Support Local Businesses
The most supportive towns for small businesses are built on people choosing local, consistently. Whether that's booking a hair appointment at a nearby salon or stopping by a family-owned gym instead of a chain, where you spend your time and money has a real impact. Locally-owned businesses create two-thirds of new jobs annually. The wages and revenue they generate stay in the community, funding local services and building a more resilient local economy.
This guide is based on general knowledge and observations. It aims to break down how your everyday choices shape the economy around you, and what it looks like to make supporting small businesses a habit.
Why is it important to support local businesses?
Supporting local businesses benefits the economy on a national, local, and individual level. When you shop locally, you're helping create jobs and opportunities for people in your community. Beyond that, local businesses reflect the character of the communities they're part of in a way large chains can't genuinely replicate, shaping the culture and identity that makes a place worth living in.
How local spending strengthens the economy
1. Money circulates locally
When you spend money at a local business, that money stays in the community. Business owners are often using it to pay their employees, buy from local suppliers, and invest it back into the area. This ripple effect, known as the local multiplier effect, is one of the reasons local economies stay resilient. It plays out across a wide range of industries where small businesses are growing.
2. Creates job opportunities
Local spending also supports local jobs. Small businesses hire people from the surrounding area, so choosing to get a massage from your local spa over a chain, for example, puts money directly toward local employees. As demand grows, that support can help a business expand services and bring on more staff.
3. Tax revenue benefits
Sales and business taxes collected at a local level help fund structural community foundations such as schools, roads, parks, and emergency services. Shopping at a small business means that tax revenue stays close to home, helping keep those community resources funded.
4. Encourages growth of other small businesses
When one local business succeeds, others tend to follow. Small businesses often promote one another, especially when they share a central location like a main street. This mutual support builds a network of community growth that benefits the whole area. It can even inspire the next young entrepreneur in town to take the leap and start their own business. For a closer look at where these communities are thriving, explore our guide to the most supportive main streets for small businesses.
5. Boosts neighborhood development
When a local business thrives, it contributes to a more vibrant, desirable neighborhood. People want to feel immersed in their town, and having regular local businesses that they can trust creates another level of interest to that area. That momentum attracts foot traffic, raises property values, and brings new investments into the community.
The best ways to support small businesses in your community
No matter who you are or where you are, your spending choices have lasting effects on the communities in which you’re putting that money. When you support small businesses, you help preserve and establish the character of towns, encourage entrepreneurship, and foster connections between people in the community. By making the following choices, you can directly impact your community in a positive way.
1. Choosing local services, restaurants, and shops
Invest in local services (salons, fitness, and more)
Whether you like getting your nails done or have been wanting to try a new fitness class, you can support local businesses by going to local spots versus chain establishments. Booking appointments at local barber shops and other beauty salons is an easy way to support local businesses. You can also support independent gyms and workout studios by scheduling fitness classes directly through their websites. Small businesses are always looking for ways to ensure their clients have a great experience and it usually starts before you’ve even stepped foot in the door.
Support local restaurants and cafes
The easiest way to support small businesses in your community is by dining at locally owned restaurants instead of chain establishments. Many small businesses place a strong emphasis on client relationships and service, which can create a more personalized experience. You can also order takeout or delivery from these same restaurants and directly support them instead of third-party platforms. Whichever way you choose, tipping generously is yet another way to support the staff, which are typically made up of local residents.
Shop at independent retail stores
We’ve all been in a situation where we need a last minute birthday gift, a new outfit for a special occasion, or even a unique experience to give someone, like a paint-and-sip night. Choosing to shop with independent retailers and local experience-based businesses for gifts, clothing, and outings can help support your local community while also offering something a bit more personal and memorable.
2. Supporting small businesses through word-of-mouth
A word-of-mouth recommendation is one of the most valuable things you can offer a small business. If you’ve had a great experience at a local yoga studio or stopped by a nice boutique, simply mentioning it to a friend or family member can bring in new clients at no cost to the business.
3. Using social media and online reviews to help local businesses
Posting about a local business on social media, whether it’s a tattoo shop, a date night spot, or a dance class, puts it in front of people who are actively looking for recommendations. Leaving a thoughtful review does the same. A few kind words can help more people discover a business they can count on.
How to support local businesses while traveling
Supporting small businesses doesn’t have to stop when you leave town. Sustainable tourism, which means traveling in ways that benefit local economies and communities, is an easy extension of the same choices you make at home.
This looks like:
Staying at a locally-owned boutique hotel or inn
Booking tours, guides, or experiences run by local businesses instead of large travel agencies
Dining at locally-owned restaurants vs. nationally-recognized chain restaurants
The local spots give you a chance to support small businesses while having more memorable experiences.
Supporting local businesses: A win for all
Small, intentional choices add up across a community. Every purchase, recommendation, and shared post leaves a lasting impression on the small businesses and the communities they live in. Choosing small can help build something bigger.
If you’re running a small business of your own and trying to do it all yourself, there’s a better way. Acuity Scheduling supports small businesses with client booking, secure payments, and more tools to help you grow. Start your free trial today.
Curious about what community support looks like for small businesses across the country? See our guide on which U.S. cities show the most support for small businesses.
