A local business refers to a profit-making entity that provides goods and services to the local population. They are mostly owned locally and are generally smaller in size. They may, however, be franchises of large corporations or corporate branches that have a localized presence.
Their existence in the local community brings along several benefits. These form the subject of the discussions that follow.
THE BENEFITS OF LOCAL BUSINESSES
The following are some of the top benefits of local businesses to their surrounding communities:
Enables Easy Access to Credit Facilities
There exists a high level of trust between the operators of these local businesses and their patrons. This is due to the high level of familiarity that exists between these two cadres of persons. Indeed, a typical operator of a local business knows (or ought to know) the name, precise residence, appearance, and occupation of his patrons. Because of these, the patrons may access credit purchases more easily than they would from a large company.
Confers Greater Proximity to Patrons
Local businesses have a higher degree of penetration than their large-scale counterparts. They are found on the ground floor of apartments, in street corners that are otherwise inaccessible, atop high-rise buildings, and so on. This spares their patrons, both current and prospective, of the need to travel long distances in search of their merchandise. This subsequently saves the patrons a great deal of time, money, and effort. It also makes shopping pleasurable undertaking.
Enhances Interactions, Cohesion, and Bonding
They provide the members of the local community with the opportunity to mingle freely. This is especially significant in the typical urban setting where there is hardly any interaction between the various dwellers there. In the course of mingling and interacting the local community bonds and becomes more cohesive. They learn to appreciate and tolerate one another. This keeps certain social issues like social unrest, racially-motivated attacks, and mistrusts at bay.
Provide Better Customer Service/Relations
On the whole, the typical local business handles a lower volume of traffic on any trading period. Because of this, the operators of these businesses are able to know each client by name, appearance, and place of residence. They are in turn better placed to provide better services and customer relations than the large-scale businesses are. Moreover, they can also tailor their services to suit the unique needs of each client, a feat that no large-scale business can accomplish.
Stimulate the Local Economy
These businesses enhance the flow of liquidity in the local economy. This brings along some attendant benefits. Examples of these benefits include more jobs, additional business opportunities, reduced income disparities, and lower social tensions, and so on. They are thus the surest way of mitigating most of the socio-economic issues that are felt at the local level.
The benefits that local businesses bring to the locality wherein they are based are too innumerable. Owing to the limitations of space and time, they could not all be exhausted in a single discussion of this kind. They are enterprises that no serious government, municipality or local leaders may afford to overlook.