Entrepreneurs play an important role in helping create local jobs, drive market innovation and enrich local communities. According to the National Federation of Independent Businesses, roughly 67 cents of every dollar spent at a small business stay within the community and generates an additional 50 cents in local business activity.
That’s why it’s critically important for everyone — including small business owners — to support local businesses.
If you own a local business, here are four ways you can demonstrate your support for other business owners in your area.
1. Include More Small Businesses in Your Supply Chain and Shop Local
When possible, identify options for sourcing corporate supplies, catering or marketing services from local vendors. In addition to sourcing, consider purchasing client gifts or hosting events in partnership with other local businesses.
Although larger, non-local businesses frequently compete on price, there are specific advantages that come from working with local vendors in your area including developing strong business relationships and building a network of like-minded entrepreneurs and small business owners.
2. Work with Local Businesses on Events and Promotions
You don’t need to be a large corporation to create partnerships with other businesses. For example, Zions Bank client Tilden has found success by hosting events at their store featuring other small business owners.
If you’d like to create similar opportunities, consider these opportunities:
- Create joint content such as a webinar, course or video.
- Organize a giveaway with prizes from all participating companies.
- Organize an exchange for each company to share special promotional codes from their partners.
- Organize a community event such as a conference, fundraiser or trade show.
3. Support Local Businesses Through Customer Referrals
Local business owners benefit from building a strong referral network from other local businesses, which can open doors and build credibility. Referrals are impactful because they’re not just leads — they’re endorsements that build a stronger sense of confidence from the beginning.
Research on referred customers suggests that referred customers have a 37% higher retention rate compared to customers acquired through paid channels. Additionally, referral leads convert better compared to leads generated through other forms of marketing.
If a customer needs a product or service you don’t provide, helping them find a reputable local small business not only helps the customer, but strengthens your relationships with these businesses, who may refer customers to you in the future.
4. Strengthen Your Business Through Chamber Involvement
Being actively involved in your local Chamber of Commerce can also help strengthen your business community.
Chamber of commerce membership offers access to a network of business contacts who are often eager to work with other members. Joining Chamber boards or committees can provide opportunities to help you build deeper professional relationships with other business leaders in your community.
Being a chamber member helps you develop credibility with potential customers. According to one study, 64% of adults familiar with their local chamber of commerce were more likely to purchase from a chamber member and 63% of these adults are more likely to recommend that business to someone else.
In addition to these benefits, dollars that stay in your community help create jobs, fund schools and preserve the unique character of neighborhoods in and around your business. When entrepreneurs help champion other entrepreneurs, they position their local economy to thrive.
Supporting Local Businesses Creates Stronger Communities
As the top small business lender in Idaho and Utah, Zions Bank provides a variety of resources for entrepreneurs, including small business loans, financial calculators and one-on-one complimentary counseling through our Business Resource Center in Salt Lake City and Boise.