“I find that the harder I work, the more luck I seem to have.” Thomas Jefferson, the 3rd President of the United States.
Seven. Seven comes up a lot in business studies. The rule of marketing says that if a customer sees or hears an advertisement seven times they will remember it. It is also speculated, although it may not be true, that money turns over seven times in a community. While it can not be proven fact by economists, it is a good thought to keep in mind when shopping in town.
Small businesses keep towns alive and money in people’s pockets. So, if money turns over seven times in one community, think of the impact.
Let’s say you work for a local business. Payday comes and you deposit your check in a local bank, that’s one; you buy gas at a local gas station, that’s two; you buy groceries, that’s three; you donate money to a local school or church, that’s four; you buy dinner at a local restaurant, that’s five. Now, that leaves two more to be spoken for, but let’s look at each establishment that got part of your paycheck, each one will turn that dollar over one way or another. They will either pay an employee or buy goods or services for their business.
So, whether or not the thought that a dollar turns over at least seven times in a community is true or not, the money still stays local for the most part. It is important to sustain your local economy. Even if you shop at a Walmart or McDonalds those businesses pay local employees.
Crossville is full of local businesses. Our “Beginning Cumberland County” series focuses on the history of those businesses and how they began our town but let’s focus on today.
How does a local business impact a town other than money turnover?
According to the U.S. Small Business Administration, “Small businesses are the lifeblood of the U.S. economy: they create two-thirds of net new jobs and drive U.S. innovation and competitiveness. A new report shows that they account for 44 percent of U.S. economic activity.”
Every community has expenses and upkeep in order to maintain a satisfactory level of infrastructure. Not only do small businesses provide jobs, they also generate local taxable revenue that provides funds for local projects and maintenance.
Local businesses also rely on other businesses in their area for services that they cannot provide themselves. For example: signs, printing, IT, supplies, cleaning, and so on.
Diversity is also a huge factor in small businesses. A report that Verizon put out says that, “36 percent of small businesses are owned by women, 9 percent are owned by veterans, and 14.6 percent of small businesses are owned by people of color.”
Small businesses are incredibly important to the economy, both local and international. So, whether it is “Small Business Saturday” or not, shop local, work local, love your community.