Community Businesses
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What you will learn
- 1Tell the difference between a local small business and a national or global business
- 2Explain why local businesses matter to a community
- 3Describe how communities and businesses depend on each other
Mini Lesson
Walk down almost any street in a town or city and you will see businesses — the bakery on the corner, the hardware store, the pharmacy, the restaurant. Businesses provide the goods, services, and jobs that communities need, and they pay taxes that help pay for public services; in return, communities give businesses workers, customers, and roads. But not all businesses are the same. Understanding the difference between local small businesses and national or global businesses helps us appreciate the role each plays in our daily lives and our economy.
What is a local small business?
- A local small business is owned and operated by one person or a small group, usually within a single town or city.
- It typically employs a small number of people — often neighbors, family members, or people from the same community.
- Examples: a family-run bakery, a neighborhood barbershop, a local bookstore, a small farm stand, a community plumber, a single-owner restaurant.
- Profits stay largely within the community — when you buy from a local business, more of your money stays in the area and supports local families.
- Local businesses often know their customers personally and can offer more individual attention and customized service.
What is a national or global business?
- A national business operates in many locations across an entire country — it has a consistent brand, product, and price no matter which location you visit.
- A global business (also called a multinational corporation) operates in many countries — it produces, sells, or both across international borders.
- Examples of national businesses: a nationwide supermarket chain, a large pharmacy chain, a national fast-food brand.
- Examples of global businesses: car manufacturers, technology companies, international clothing brands, global airlines.
- Global businesses often benefit from economies of scale — by producing huge quantities, they lower costs and can offer lower prices to consumers.
Why local businesses matter
- Jobs: Local businesses are among the largest employers in most communities — they hire local workers and keep unemployment low.
- Money circulation: When you spend at a local business, a larger share of that money stays in the local economy and is spent again nearby.
- Community identity: Local businesses often reflect the culture, history, and character of a place — a long-standing family bakery is part of a community's story.
- Diversity: Local businesses offer unique products and experiences that national chains do not — they keep communities interesting and distinctive.
Words to know
Local business
A business owned and run by one person or small group, serving a single town or area
e.g. The family bakery on Main Street is a local business that has been here for twenty years.
National business
A business with many locations across an entire country, offering a consistent brand and price
e.g. A national pharmacy chain has stores in nearly every city in the country.
Multinational
A business that operates in many countries across international borders
e.g. The multinational clothing brand sells the same jackets in Tokyo and in New York.
Economy
The system of producing, buying, and selling goods and services in a place
e.g. Local spending helps keep the community economy healthy.
Profit
The money a business has left after all its costs are paid
e.g. The shop uses its profit to pay employees and buy more supplies.
Community
A group of people who live and work together in the same place
e.g. Our community supports its local businesses by shopping nearby.
Entrepreneur
A person who starts a business, takes the risk, and works to make it succeed
e.g. The entrepreneur opened the bookstore after saving for two years.
Consumer
A person who buys and uses goods or services
e.g. A smart consumer compares prices before buying a new backpack.
Ask yourself: "Think of a local business in your town or neighborhood. What does it sell or do? Who does it employ? How would your community change if that business closed?"
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