The Perks of Shopping Small: A Closer Look and the Cash Advantage

Large online retailers and national chains may boast competitive pricing, extensive inventories, and swift shipping, but there are some crucial aspects where they fall short. Here's a deeper dive into the advantages of supporting small businesses, and why opting for cash transactions might be in your best interest.

As per the U.S. Small Business Administration (SBA), a small business is an independently owned venture with 500 or fewer employees. Despite the massive footprint of national corporations, they make up only 0.1% of American businesses. The remaining 99.9%, comprising 33.1 million businesses, are small enterprises. These small businesses contribute significantly to the U.S. economy, generating nearly 63% of net new jobs since 1995 and employing 46% of private sector workers.

Supporting local small businesses goes beyond personal transactions; it becomes a catalyst for community prosperity. When you spend money at nearby establishments, you contribute to a virtuous cycle. Ben Johnston, COO at Kapitus, emphasizes that local business sales fund local workers, who, in turn, invest in the community. Local businesses also bolster the community tax base and actively support local charities, events, and sports teams.

Shopping at local small businesses aligns with environmental consciousness. Tony Giannattasio, Mayor of Milford, Connecticut, highlights how shorter supply chains associated with small businesses can decrease your carbon footprint. Establishments like coffee shops and bookstores not only offer unique products but also serve as social hubs, fostering community togetherness and minimizing environmental impact.

One standout perk of small businesses is the curated product selection. Owners meticulously choose products based on customer needs and preferences, resulting in higher quality and more unique offerings compared to mass-produced items from larger retailers. Additionally, small businesses thrive on personalized customer service. With the majority being sole proprietorships, you're closer to the owner, and they often take a personal interest in ensuring customer satisfaction.

When supporting small businesses, consider paying in cash for various reasons. Firstly, it saves small business owners a notable percentage (between 2% and 3%) in interchange fees associated with credit or debit card transactions. This can amount to significant savings, especially for businesses with substantial credit card sales. Cash transactions also provide immediate access to funds without processing delays.

However, it's essential to acknowledge that handling cash comes with its own set of costs and risks. Electronic payments offer efficiency in checkout processes, accounting, and reduce the risks and expenses associated with cash handling.

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In conclusion, the perks of shopping small extend beyond the products—they contribute to community growth, offer unique selections, and provide a personal touch to the shopping experience. When opting for cash transactions, you not only support small businesses but also help them save on transaction fees, contributing to their sustained success.

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