Small businesses can help build stronger local communities

Local businesses are the backbone of the UK economy. With over 5 million small businesses making up 99% of all UK enterprises, their influence extends far beyond commerce. They create jobs, foster innovation and strengthen the communities they serve.

Both communities and businesses benefit from building strong community ties. UK consumers are increasingly factoring in more than just price and convenience when choosing where to shop. Research shows 79% of shoppers believe brand ethics and sustainability will influence their future purchases, and 33% value a sense of community around a brand. Local businesses can stand out by building authentic connections in their neighbourhoods.

Positive impact in the community also influences how employees feel. Ties to the local community can deepen feelings of purpose in employees. According to the Cigna Group, purpose-driven businesses have 40% higher retention rates. Gallup recently reported that 68% of employees who have a low sense of purpose at work are actively seeking a new job.

Do more outside your walls

In a study by the US-based National Federation of Independent Business, 71% of small business owners surveyed said community involvement is important to the success of their business. Besides helping them reach new customers, the research revealed other, more personal, motives for community involvement:

• 95% of small business respondents said community involvement is important to their personal satisfaction and fulfilment, while 68% said it’s also important to the wellbeing and morale of their employees.
• 82% of entrepreneurs said they contribute to their communities because it’s important to create a better local business climate.
• 92% said it’s important to make their communities better places to live.

One way to connect with your community is to participate in events that promote independent businesses. Those can range from celebrations organised by local business groups to national events like Small Business Saturday.

Foster community connections year-round

Community connections can be built at any time and in a variety of ways. You can:

Volunteer your time. Making time for volunteering isn’t just for big businesses. It can instil feelings of pride, togetherness and help combat loneliness both within your company and the community. To get started, look for groups, charities, youth programmes or schools that offer a natural connection to your business’ products or services, or that chime with your skills. For example, some small business owners volunteer to talk with high school[TC2] students about entrepreneurship, helping to inspire future generations of business founders.

Take on interns and diversify your talent pool. As well as helping to fill a pipeline of talent, training and supporting local young people or those wanting to get back into work after a period away can help strengthen local economies.

Offer financial support. Many small business owners support organisations in their communities by attending fundraisers for nonprofits, sponsoring sports teams or donating to a worthy cause.

Make in-kind contributions. Providing meeting spaces at your business for local networking events, donating excess inventory or offering auction items can be powerful ways to help your community while promoting your products or services. Clothing and sports gear stores can help local teams, for example, while restaurants can donate food for community events.

Foster B2B collaboration. Collaborating to support your fellow small businesses helps your whole community. By working with other entrepreneurs, community businesses can come together to rent or share assets, equipment and services to reduce costs and increase efficiency, making the entire business district stronger.

Join your local chamber of commerce. Membership builds trust, knowledge and visibility. It’s a simple step that can lead to lasting relationships.

Online communities also count

With 55 million social media users in the UK, platforms like Instagram and TikTok are powerful for showcasing your community involvement. Social commerce is projected to reach £13 billion by 2029, so now is the time to make your business visible online.

• Create online spaces for customers to share ideas and feedback.
• Use social media to highlight community initiatives and tell your story.
• Offer digital conveniences like click-and-collect or online booking to make life easier for customers.

Building better businesses

Getting involved with local communities can be a smart move.

In addition to giving teams more of a sense of purpose and providing opportunities for employees to develop new skills, these relationships can support the wellbeing of the local community, which is often where smaller businesses find their customers.

Being more involved with local communities can:

• Increase brand awareness and perception.
• Boost your reputation and appeal to new job applicants.
• Give employees a sense of purpose and pride.
• Help skill up your workforce.
• Increase trust and loyalty.
• Help your customer base grow.
• Create dialogue and feedback opportunities so you can learn more about what people want.

When setting goals for the new year, it’s worth considering your local impact alongside your growth strategy. They can both play a key role in your long-term success.

If you’d like to learn more about how Worldpay can support local and growing businesses, talk to us today. We’d love to hear from you.

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