Small Businesses Big Contribution

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Small Businesses Big Contribution

PHOTO BY ADEOLU ELETU/UNSPLASH

PHOTO BY ADEOLU ELETU/UNSPLASH

PHOTO BY ADEOLU ELETU/UNSPLASH

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Business owners have a substantial impact on their local economy

By Natalie Garcia, COPY EDITOR
As any business owners know establishing clientele, product inventory, and a rented space in which to work are only the beginning of the stresses when starting up a small business. These are the exact sacrifices Patrick Mcaninch of Stockton, Calif faced when opening up his own CrossFit gym facility in Feb. 2014.
When you take the time to recognize how many small businesses contribute to your local city’s economics, it is admirable to recognize all the hard work, commitment, and time these people have dedicated to bringing their visions into reality. The challenge of maintaining consistency towards keeping small businesses operating is difficult when competing with large corporations in the surrounding area.
The economic contribution is measured by the Gross Domestic Product (GDP) which is the value of goods and services made of property and labor here in the United States. The goal to establish a successful independently owned business is to offer a useful product or service to the community while also making a living. This may be satisfying a need for a specific community, solving a problem through services, or offering supplies.
The U.S. Small Business Administration emphasizes that the contribution of small businesses is essential to not only their local economy but the United States economy as a whole. The Office of Advocacy reports that small businesses make up 44 percent of U.S. economic activity.
Chief councilman Major L. Clark states, “While small business contribution has grown at a slower rate than that of large businesses, small businesses continue to be at the forefront of driving innovation, jobs and economic growth”
Small Business Administration numbers identified more than 28.4 million independently owned businesses operating within the United States as of Mar. 2014, which demonstrates an abundant number of job opportunities.
As these businesses are run by ‘self-employed’ individuals it allows for the business to seek a variety of potential employees thus creating a unique experience fit to their fixed expectations.
Business owner and lifelong California resident Patrick Mcaninch has lived in the city of Stockton for 32 years, five of those years being a gym owner. Patrick started off coaching fitness weight lifting/cardio classes out of his garage in 2012 after his passion for fitness grew he decided to extend his services by opening small independently owned and operated cross-fit gym.
His journey to opening his first business consisted of long days and nights as he worked to ensure that he had sufficient funding and enough established memberships. He also took on the entire workload of operating the business.
Within the first few months of opening his 500-square-foot gym, he was the only certified coach running all his classes from as early as 5 a.m. every morning to closing up shop after his last class at 7:30 p.m. For a fitness class with a minimum of six members per each class, he had to utilize his space and equipment sparingly.
“It still isn’t easy running a business, I’ve just gotten better at managing and prioritizing my time and responsibilities so that it fits the needs of both me and the gym obligations,” Mcaninch explains.
Soon realizing his gym was expanding and his advertising was bringing in more potential clientele, membership rates slightly increased with intentions of saving enough to relocate to a bigger space. After realizing his business was expanding enough for him to need that extra space, Mcaninch says that he hopes his contribution to his community continues to beneficially impact those who come to his gym.
“I am constantly reminded of why I started this business in the first place and that is to help others start or even continue a healthier lifestyle because, in the end, it’s scary joining a gym or even sacrificing things to become a better version of themselves. I know if at least one person walks out of my gym feeling accomplished I’m doing my part and will continue to do so.”
Small business owners include taxes into their personal taxes at the end of each year so they are taxed based on their yearly earnings entirely, according to the National Federation of Independent Businesses.
Small businesses bring opportunities to people who may not be hired at larger corporations for a variety of reasons, including qualifications and location.
Meanwhile, these potential employees tend to bring a variety of ideas and innovation, because they are not expected to follow one specific corporate way of doing things. They have the space to create and bring a more personable experience to the workplace.
The communities in which small businesses serve may alter the expectations and standards made for the business. For example, in communities that serve a more rural demographic standard for employment may not require education requirements such as degrees, but would rather take someone who can apply talent or skill to their work.
“Upon approval and the process of adding a new business to the community we seek companies that thrive and genuinely wish to contribute to the growth of their community,” Stockton Chamber of Commerce Board Member Melissa Vela said.
A community is often defined by its local “mom and pop” shops. They add a more human touch to the area.
“36% of minority-owned small businesses have plans to grow staff compared to 27% of non-minority owned businesses. Additionally, more than half (51%) of Millennial-owned businesses have plans to grow their staff,” according to the United States Chamber of Commerce.
This enables people of all cultural backgrounds to grow within communities and offers an opportunity for them to express diversity through small businesses. With this, customers are more likely to grant a unique experience that is unlike the average corporate agenda.
With the expansion of a small business, there is also the possibility of eventually taking it to a larger scale and being established as a corporate business with over 500 employees. Parallel businesses like Microsoft and Amazon started off as independently owned and operated smaller companies that expanded to worldwide corporate names that have changed the world.
This all manifested because community members supported small businesses in hopes that it would be reciprocated back into their economy.