How Small Businesses Impact Their Communities

Recognizing their importance is the first step to enjoying all the benefits that small businesses deliver to their local areas.

Why Small Businesses Are Important to the Community

Small businesses are the heartbeat of our community, making a lasting impact that reaches far beyond the annual recognition of Small Business Saturday. These locally owned establishments reflect the unique personality of our towns, fostering meaningful connections with residents and visitors alike, something often lost in larger corporate settings.

Supporting a small business isn’t just about appreciating its charm or individuality. It’s about recognizing the vital role these businesses play in strengthening our local economy, enriching civic life, and providing goods and services that are as diverse and distinctive as the community itself. Most importantly, it’s about buying local and doing what we can as a community to ensure our local businesses continue to thrive and hold up the Cumberland County economy.

Economic Benefits of Small Businesses

Across Cumberland County, small businesses are essential to the success and vibrancy of our downtowns and surrounding neighborhoods. Our strategic location, growing population, and strong sense of community make the region an attractive place for entrepreneurs to launch and grow. In turn, their presence contributes to the economic health and overall character of the area.

Here are eight ways small businesses do this.

1. Local Job Creation

Small businesses are powerful engines of employment. By creating local jobs, they reduce commuting time, lower regional unemployment rates, and boost the economy from within. When one small business thrives, it often stimulates growth at other nearby establishments, fostering a dynamic, interdependent ecosystem of shops, services, and experiences.

The result? A more walkable, livable, and prosperous community for everyone.

2. A Stronger Tax Base

Small businesses generate revenue that translates into tax income, feeding the local economy and benefiting essential services, including schools, public safety, and community organizations. This, in turn, strengthens the economy and enhances the quality of life for residents – creating a positive feedback loop that benefits everyone in the region.

3. Efficient Use of Infrastructure

Many small businesses are located in existing downtown buildings and neighborhood storefronts, which reduces the need for new construction and the strain on municipal infrastructure. Their presence often revitalizes historic districts and supports smart, sustainable development that maintains the charm and character of our towns.

4. Innovation and Product Diversity

Creativity thrives in small business environments. Whether it’s a handcrafted product, a niche service, or a locally sourced menu item, small businesses offer consumers something they won’t find at national chains. Furthermore, many local retailers collaborate with other nearby businesses, sparking more innovation and recirculating profits locally.

5. Tourism

Many tourists now look beyond the typical holiday destinations and seek experiences off the beaten track. Their quest for authentic experiences, unique local flavors, and destinations with personality often takes them to locations with a proud legacy of small businesses. These businesses are what give many areas their own unreplicable charm.

Tourists are much more likely to engage with small, local businesses than they are with national corporations. Rather than choosing convenience or familiarity, they go out of their way to immerse themselves in the local culture so they can enjoy that sought-after experiential travel.

This engagement with small businesses results in increased revenue and wider prosperity for the whole community.

6. Increased Property Value

Local economic stability is a key factor in local property values. So when small businesses bring in revenue and support the local job market, it makes the local area more appealing. This appeal translates to higher demand and an increased value for properties in the area. In turn, an improved housing market boosts the overall local economy in a cyclic relationship.

7. Local Leadership and Civic Engagement

Small business owners are invested in their communities—not just economically, but personally. Their involvement in local government and business associations ensures that decisions made at the local level reflect community values.

They help shape policy, organize and support local events, and champion the small-town spirit that makes Cumberland Valley a welcoming place to live and visit.

8. Strengthening Community Identity

Every small business contributes to the character of its town, adding color, personality, and a sense of place. These businesses are often the first to greet visitors and the last to leave the lights on for a late-night customer.

Their stories, personalized service, and dedication help define our region’s identity, making it more attractive to tourists and more meaningful to residents.

How Cumberland County Small Businesses Can Further Engage in the Community

Small businesses in Cumberland County enjoy a strong relationship with the local community, but there are always ways to bring the two closer. Here’s how small businesses can take the initiative and further engage with the community.

Partner With Local Charities

Supporting the community at every level is crucial. By working with local charities, small businesses can help community members who need it most. Not only is this a decent thing to do, but it also boosts the company’s reputation and bolsters the local economy. These are just some reasons why 66% of small businesses donated to local charities in 2022.

Small businesses can support local charities by donating, raising awareness, or launching a unique product and giving those profits directly to charity.

Participate in Community Events

Getting involved with local events is great for the community and for businesses. Small businesses enjoy heightened awareness and a strong brand reputation as community members. In return, the community enjoys richer events that create a sense of togetherness and community spirit.

Source Products Locally

Sourcing products locally is one of the best ways small businesses can help local economies. When small businesses buy from local suppliers instead of national chains, their money stays in the local community. Those suppliers are more likely to spend locally, too, boosting the economy as a whole. Rather than using large corporate suppliers, small businesses should consider keeping the money within the community by buying from other local businesses.

It also helps businesses operate more sustainably, and gives their products and services that extra local element customers love.

Why Cumberland County Is a Great Place for Small Businesses

With 33 diverse townships and boroughs, Cumberland County offers small business owners many options to find their perfect location. Whether you’re just getting started or looking to expand, the Cumberland Area Economic Development Corporation (CAEDC) is here to help.

We offer guidance on:

• Identifying funding sources
• Evaluating project options
• Navigating local government regulations
• Connecting with key community stakeholders

Our mission is to make it easier for your business to thrive here.

Let’s Build the Future — Together

When you support small businesses, you’re not just making a purchase; you’re helping build a more vibrant, connected, and resilient community. These entrepreneurs do more than drive economic growth; they shape our culture, preserve our heritage, and help define what makes Cumberland County a special place.

During National Small Business Month in May and throughout the year, we celebrate every local business that contributes to our region’s success. If you’re ready to start or grow your business in Cumberland County, reach out to CAEDC today — and let’s build something great together.