How Small Businesses Can Boost Their Communities

In the United States, there are approximately three hundred thousand small businesses. Although their contribution to overall economic activity has increased at a slightly slower rate than that of larger corporations, small companies continue to be at the front forefront of driving technological innovation, new jobs and economic development. As these companies start to expand, government officials, educators, researchers and other experts continue to push for greater educational opportunities for all children, as well as more opportunities for small business owners. The advantages of online trading include:

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How Small Businesses Can Boost Their Communities

In the United States, there are approximately three hundred thousand small businesses. Although their contribution to overall economic activity has increased at a slightly slower rate than that of larger corporations, small companies continue to be at the front forefront of driving technological innovation, new jobs and economic development. As these companies start to expand, government officials, educators, researchers and other experts continue to push for greater educational opportunities for all children, as well as more opportunities for small business owners. The advantages of online trading include:

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* Dispel the Pessimism about Small Business Success. One of the biggest disadvantages of small business ownership is the pessimism that surrounds so many discussions of how to grow and succeed. There are often discussions about whether it’s possible to start a business at all, much less become profitable. Online trading has opened the door for an endless array of small business ideas and the ability to compete with larger corporations. It allows a small group of entrepreneurial innovators to pursue ideas that might not have been feasible to them before without the fear of losing personal assets or business resources.

* Create More Local Economic Activity. Online trading enables local businesses to increase the amount of goods and services that they’re able to sell online. This increase in online sales leads to a marked increase in the number of customers who purchase local goods and services. This, in turn, leads to a marked increase in local spending and consequently, increases taxes and rebates. Ultimately, this type of online business activity stimulates the local economy and can lead to increased tax revenues.

* Increase Worker Productivity. Online trading empowers small businesses with the ability to utilize employee time more productively. Instead of waiting for orders to arrive, workers can use those resources to brainstorm and create new ideas, products or services. This new stream of labor allows small businesses to add to their capacity and thereby improve overall customer satisfaction.

* Create More Employment Opportunities. Because online transactions are easy and convenient, they provide small business owners with an opportunity to tap into untapped labor markets. Outsourcing allows smaller firms to access the services and skills of individuals in other countries. Because many foreign countries have low unemployment rates and favorable employment opportunities, companies often outsource tasks to foreign workers, who often provide lower prices and a higher level of job security than is offered by U.S. citizens. By outsourcing certain tasks to foreign businesses, small firms increase their overall level of production while gaining access to qualified professionals.

* Take Advantage of Online Shopping Opportunities. Online shopping has also dramatically changed the way people buy, selling and trade goods. By taking advantage of online shopping opportunities, a small business owner is afforded the opportunity to expand their business. By adding online fulfillment and shipping capabilities, these businesses can offer consumers lower prices on a wider variety of products.

* Stimulate Creativity and Innovation. While the global economy may be suffering, there are still many small businesses that are creating innovations and advances in new technology. These companies often tap into government or private grants to fund their ventures. By tapping into these types of programs, these companies are able to attract new customers and stimulate new growth within their communities. By keeping these companies viable through access to capital and other forms of economic stimulus, small businesses help to keep local economies afloat.

Because of the global economic crisis, many small businesses are feeling the crunch. In order to stay afloat, many companies are laying-off employees, reducing staff, and cutting other non-core expenses. However, even when a business is not closing its doors, there are numerous ways for them to boost their local economies. Utilizing various forms of economic stimulus, small businesses can help to keep their local economies viable.

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