Why should I support local businesses?

Supporting local businesses comes with a feel-good factor and it’s great to see so many local people choosing Ryder Services and across the UK. Shopping locally also has a perceptible impact on local economy and communities. The UK small business scene is buzzing but not without its challenges. Let’s dive into why backing local businesses is more than just a gesture — it’s a way to strengthen our communities and make a difference.

Small businesses in the UK: on the rise but under pressure

The number of private-sector businesses in the UK at the start of 2024 was 5.5 million, and of those, 5.45 million were small (0 to 49 employees), with 37,800 medium-sized businesses (50 to 249 employees), and 8,250 large businesses (250 or more employees).

The Federation of Small Businesses says small businesses employ around 60% of the private sector workforce.

However, a decline in the private sector business population by 1.0% (56,000 businesses) since 2023 underlines the importance of supporting local businesses to arrest any further decline.

These are challenging times where inflationary pressures, rising costs, and red tape could well hinder new businesses getting off the ground.

What are the odds of a new business surviving in the UK?

The odds aren’t unfortunately always in favour of small business success.

Experian says that around 4% of new businesses have ceased trading by the end of the first year, with over half hitting the wall by the three-year point. Rising costs, competition from big chains and online giants, and pressures from fluctuating markets all make it a tough landscape to navigate. So, supporting a local business isn’t just a helping hand, it’s about sustaining a diverse and resilient economy.

A few other reasons to support local businesses…

Supporting the local economy and jobs

Money spent locally stands a greater chance of circulating within the community, benefiting local suppliers, employees, and adjacent businesses. For every £10 spent at a local independent business, up to £3.80 more stays within the local area compared to the same spend at larger businesses, according to research from the Centre for Local Economic Strategies.

Local businesses are also major job creators. They’re more likely to employ people from within the area, which again has a positive knock-on effect on the local economy. More local jobs mean more stability for families in the area, better opportunities for young people, and generally stronger, more resilient communities.

The personal touch

The personal touch is moving further and further away in this connected yet strangely not world. When you walk into a family-run business like Ryder Services, you’re likely dealing with people like us, who know the trade inside-out and are passionate about helping you find the best materials for your project. A passion that’s been passed down through generations. You get tailored advice that you’re unlikely to find from a big chain.

Staff on a local level are more knowledgeable and willing to take the time to answer your questions or provide guidance.

Small businesses often go above and beyond to offer a unique shopping experience, whether through extra advice, follow-up, or even by getting involved in events at a community level. This personalised service helps build trust and connection, something that adds real value and fosters customer loyalty.

are Local businesses more sustainable?

Big businesses rely on complex supply chains that can stretch across multiple continents, whereas local businesses are more likely to source locally, and so often leave a smaller carbon footprint.

Local businesses are often more mindful of their environmental footprint, embracing sustainable practices out of necessity. Many smaller timber suppliers, for example, will go out of their way to source from sustainably managed forests and promote eco-friendly building materials, appealing to customers who want to make greener choices in their projects.

Variety and innovation

The rigidity of the larger business or retailer just often isn’t a part of what local businesses are about. They have the luxury and the flexibility to try new approaches and products rather than the cookie-cutter solution.

local identity matters

Local businesses contribute to a town’s character and identity. When you visit a town, it’s perhaps the independent businesses that stand out as being the more memorable rather than the usual suspects every few yards. Shopping locally can help keep tourism alive too, if where you live happens to appeal to visitors.

Customer is king

Word-of-mouth recommendations run rings around anything even the best marketer could dream up, and with the internet investing each one of us with the power to be a critic, no SME can afford to be lacklustre. Even a lukewarm review can put people off. Another reason why you should support local business, and shout about it when you have a particularly exceptional experience.

Vote with your feet

Supporting local businesses isn’t about grand gestures, as you too are getting something out of it. Every pound you spend is essentially a vote in favour of your local community, quality, and sustainability over convenience in some cases. Small choices help create a culture that values and protects local economies and encourages new local businesses.

Sources:

fsb.org.uk
ons.gov.uk
cles.org.uk
gov.uk