Businesses are an integral part of the community, whether they realize it or not. The size or type of business doesn’t matter as long as it is a valuable asset to the community it serves — because being part of a community comes with much responsibility. Businesses nestled in the heart of a community owe it to their neighbors, partners, community members, and the environment to be an entity in which one can take pride. That’s because they coexist with the area’s culture and contribute to its health and vitality. While many businesses may not prioritize the community in which they operate, their actions can have long-term effects on the health of that community. The well-being and success of a business depend not just on the surrounding businesses but also on the health and vitality of the community they serve, highlighting the mutual benefits of businesses and the community.
There are two types of businesses in a community: corporations or large companies that have “set up shop” in the community and small or medium-sized businesses that are local to that area. These businesses operate differently due to their structure and priorities. Whether these businesses are part of a national or international corporation or are local businesses with one or more locations in a specific geographical area, they matter to the community and need to build community as part of their mission.
The statistics are overwhelmingly positive regarding the impact community-focused businesses have on the community they serve in. At the start of 2023, the United Kingdom had 5.6 million small businesses with 0-49 employees and 8,000 large businesses with 250 or more employees. Small and medium-sized businesses are essential to the well-being of communities, making up 99.9% of all UK businesses and employing around 61% of the local community. And that’s not all:
• 76% of businesses offer more than one service to the community they serve, thus meeting its community’s various needs.
• In England alone, there were approximately 11,000 community businesses in operation in 2022, with a total income of nearly £1 billion.
• Small or community businesses are disproportionately located in areas facing multiple disadvantages. Specifically, 48% of them operate in the 30% most disadvantaged areas in England.
• Community-focused businesses create a cycle of local economic benefit for their communities by reinvesting their income, a perpetual source of funding that sustains the area.
Businesses build community because they are structured in that way – they are deeply rooted in the communities where they operate and are members of those communities. Therefore, giving back, participating in efforts to rebuild and strengthen the community, and empowering community members are fundamental parts of the structure and services offered by these businesses. Creating a company with a community-focused business model is not only beneficial for the community, but it is also good business.
While businesses may decide to headquarter their business in a particular area because of the location, cost, and size of the property or for various reasons, whatever the reason may be, that business becomes a lifeline for that community. That’s why local business owners need to understand their responsibility as they go into business, especially if they want to be successful and have an impact. Good business ownership includes having a good product, providing exemplary service to your customers, hiring locals, and leading by example so that the current generation of community members, the land, trees, water, and environment are preserved for the next generation and future generations.
Building a community should be integrated into your business, as the community’s support is crucial for its success.
Never forget that the community is your customers. They are your business partners. Nurturing that relationship is not only a business strategy but also the key to long-term success for your business and your community.