Let’s talk local: the benefits of supporting small and local businesses

Did you know that small businesses make up 98 per cent of all businesses in Australia? They’re the backbone of our economy and the heart of our communities, providing jobs, unique products, and a strong sense of local identity.

Whether it’s the corner café where the barista knows your order or the family-run bookstore with handpicked selections, these businesses make our towns and cities more vibrant.

But with rising costs and competition from big corporations, they need our support. In this article, we’ll explore why supporting small and local businesses matters and share simple ways you can make a difference.

Why supporting small and local businesses matters

Boosts the local economy

When you spend money at a small business, more of it stays in the community.

This means stronger local industries, better public services, and thriving neighbourhoods. Local businesses also source from other small businesses – think local cafés using Australian-roasted coffee beans or boutique shops stocking locally made products.

Supporting them creates a ripple effect that benefits suppliers, farmers, and artisans. From the AmperBrand creative agency in Melbourne to Byron Bay-based Afends and local grocers, Australia is home to many businesses that contribute to a flourishing economy.

Creates local jobs

Small businesses are major job creators. They employ nearly five million Australians, providing diverse job opportunities and keeping money flowing through local communities. When you choose a local café over a multinational chain, you're supporting baristas, kitchen staff, and suppliers. Small businesses also tend to invest in their employees, offering training and upskilling opportunities, fostering job satisfaction, and strengthening the local workforce.

Unlike large corporations that centralise operations, small businesses hire from within the community, keeping employment rates stable. The more we support them, the more secure these jobs become. So, whether it’s your local butcher, florist, or bookshop, your purchases help keep your neighbours employed and your town or suburb thriving.

Strengthens community connections

Local businesses don’t just serve customers; they build relationships. They’re the ones sponsoring the local footy club, donating to school fundraisers, and supporting neighbourhood events. These businesses invest in their communities because they’re run by people who live there too.

When you shop locally, you’re not just buying a product or service – you’re strengthening a sense of belonging and community spirit. Unlike faceless corporations, small business owners remember your name, your favourite order, and even your kids’ birthdays. This personal touch encourages trust, making local shopping a more meaningful experience.

Encourages unique and diverse products/services

Big chains often sell mass-produced, generic items, but small businesses offer something different—unique, handcrafted, and locally sourced goods. Whether it’s a handmade candle from a boutique store, fresh organic produce from a farmer’s market, or a one-of-a-kind artwork from a local gallery, shopping small means access to quality, originality, and a personal touch. Many small businesses take pride in sustainable and ethical practices, using locally sourced ingredients and eco-friendly packaging.

They’re also more likely to tailor their services to the community's specific needs rather than adopting a one-size-fits-all approach. Supporting them means getting better quality products and preserving cultural identity and diversity in our shopping experiences. Every purchase helps these businesses continue crafting and innovating.

The challenges small businesses face

Running a small business isn’t easy. Rising costs, including rent, wages, and utilities, make it hard for local operators to compete with large corporations with greater financial flexibility. Many small businesses operate on thin margins, and a slight expense increase can mean the difference between staying open and shutting down.

Competition from big chains and online retailers is another hurdle. Large companies benefit from bulk purchasing power and economies of scale, allowing them to offer lower prices and making it challenging for small businesses to match. With the rise of online shopping, local retailers must work even harder to attract foot traffic and maintain loyal customers.

Economic downturns and global events also hit small businesses the hardest. Whether bushfires, floods, or pandemics, they often lack the financial cushion to survive prolonged downturns. Unlike big corporations with vast reserves, many small businesses rely on consistent community support to stay afloat.

Digital and marketing challenges further complicate things. While online presence is crucial, many small business owners lack the time, skills, or budget to invest in digital marketing, leaving them overshadowed by larger competitors.

That’s why consumer support makes a huge difference. Every purchase, social media share, or recommendation helps small businesses survive and grow. By choosing local, we help create a more resilient and self-sustaining economy, ensuring that small businesses continue to thrive.

How Consumers Can Support Local Businesses

Supporting local businesses doesn’t have to be complicated or expensive. Small changes in your daily habits can make a significant impact.

Shop local instead of big chains. Whether it’s groceries, gifts, or your daily coffee, choosing a local supplier helps keep money within your community. Visit your neighbourhood farmers’ markets, independent bookstores, and specialty stores.

Choose local service providers whenever possible. Need a haircut? Pick a local barber or hairdresser. Looking for a mechanic, accountant, or tradie? Supporting local professionals strengthens the community economy.

Engaging with small businesses online is another easy way to help. Follow, share, and leave positive reviews for your favourite local stores and services. Your endorsement could bring them new customers.

Attend markets, fairs, and community events—they’re fantastic places to discover and support local talent. Many businesses reinvest their profits back into the community by sponsoring school programs, sports teams, and local initiatives. Your support helps them continue this cycle of giving.

Finally, be mindful of where your money goes. If you can buy something locally instead of from a big chain, make that choice. Small actions add up, and by consciously supporting local businesses, you contribute to a stronger, more connected, and more resilient Australia.

Supporting local businesses isn’t just about shopping -it’s about creating a stronger, more connected Australia. Government initiatives and consumer awareness play a role, but real change starts with our everyday decisions. The long-term impact of shopping local means more jobs, a thriving economy, and unique, diverse products and services. 

So, why not start today? Visit a local café, buy from a farmer’s market, or follow a small business online. Every small action helps build a big future for Australian small businesses. Let’s talk local, shop local, and keep our communities thriving.