Small businesses are getting their groove back & South Florida’s leading the way
Bottom Line: It’s not possible to go more than a week or so without hearing about more major retail closings. As of today, more than 6,200 store closings have either taken place or are planned to happen in 2019. This after more than 5,800 closings last year. When you consider just how good the economy is, it’s even more telling about the transformation that’s been playing out in retail trends. Beyond the big-box retail carnage however, there are increasingly positive stories local business stories.
In the mist of all of those closings last year we had more than 3,200 stores pop up across the country. About half of which were locally owned and operated business. According to research by Fox Business, 96% of all Americans patronize locally owned and operated businesses. Increasingly the trend appears to be one in which big box stores are viewed as commodities and our shopping habits, which have always been driven by price and convenience, reflect the cheapest and easiest way to buy that stuff. This is where local businesses can shine.
Well run local businesses can create unique experiences that can’t be easily replicated online or in a big box store. As shopping trends are continuing to rapidly shift, these businesses are increasingly benefiting. Here’s a new stat that’s compelling for you.
- 70% of all retailers in the US have 10 or fewer employees
What does that tell you about the shift that’s taking place? I’m a fan of businesses of all shapes and sizes but I will appreciate small businesses the most. We get the biggest economic impact in our communities out of them and they provide most new jobs that are created over time. The average dollar spent in a local business touches approximately seven hands before it makes its way out of our communities compared to about four hands for national companies. Shopping local is the ultimate win-win. But here’s the next great thing. For the first time on record South Florida is the best place for small business nationally.
According to Biz 2 Credit which provides annual coverage on small business health – Miami's metro is the best in country. This segs with recent info from WalletHub showing several Florida cities in the top 20 nationally for Hispanic Entrepreneurship. We have a good news story that keeps getting better in South Florida.