You’ve probably heard the phrase before, especially during election cycles. Small businesses are the backbone of America. You might be quick to roll your eyes and dismiss this as an outdated saying, especially with major eCommerce retailers and big-box stores commanding all the headlines. However, small businesses make up over 99% of all US employers and account for 60% of all jobs added annually. Nearly all consumers in America prefer to support small, locally-owned businesses when possible. On average, a greater portion of the money spent locally stays local compared to money spent at a non-local business.
If you made a list of the small businesses in your community, would you include franchises? Many consumers – and even some politicians – believe that franchise businesses and corporate-owned chains are one in the same. This is a widespread misconception. Franchisees are entrepreneurs who invest in a proven model, which lowers risks and streamlines processes. Franchises provide their communities with necessary jobs and services; over 8 million Americans are employed by franchise businesses, almost all of which are locally owned. Even at McDonald’s, perhaps the world’s most famous franchisor, almost every location is owned and operated by an independent, local business owner.
Franchise owners support their economies in other ways, too. Just like any other small business owners, they pay local taxes that contribute to things like schools and public works. Many franchise owners also involve themselves in charitable endeavors. The greater franchising community is behind a wide range of philanthropic initiatives that benefit local communities, especially during the coronavirus crisis. So, next time you are seeking to support local business, don’t forget about the franchises in your area.
As far as timing goes, there’s no beating around the bush. The pandemic and recession have hit many small businesses hard. However, small business optimism is high among owners. An overwhelming majority of consumers supported small businesses during quarantine and plan to continue doing so. The coronavirus crisis has galvanized support. Many recession-resistant sectors are primed for growth and showing signs of a rebound. The backing of a parent organization is a major advantage that makes a franchise the best of both worlds for entrepreneurs. This can be especially helpful in times of uncertainty.
If you’ve ever considered entrepreneurship, this is a great time to start a local business of your own, and meaningfully contribute to your community. This is especially true if you’re one of the many Americans dealing with professional uncertainty. Owning your own business and being your own boss could end up being a decision you wish you’d made years ago.
No two small businesses are alike. At FranFund, we know that firsthand. That’s why we design funding solutions that meet entrepreneurs’ individual needs. If you’re interested in taking the next step, or if you just want to learn more, we’d love to hear from you.