Small business owners: do you currently give sponsorships and donations to anyone who happens to request them?
Do you feel that you are simply “too small” for a well-defined strategy?
Do you fear saying “no” to nonprofits out of concern that it might reflect badly on your business?
If so, you are not alone.
Strategic giving programs are not only for large companies with global reach and dedicated staff. Small and medium-sized businesses can benefit from giving, and devising a strategy is really easy with a little bit of direction.
Greater benefits for your small business
Small and medium-sized enterprises (SMEs) can, and should, tailor their giving in ways that maximize their benefits for the business. Doing this can, and should, simultaneously maximize outcomes for the community.
Community investment matters for businesses. How your business makes gifts and engages in sponsorships is important in the eyes of customers.
The truth is that this is the same for a Fortune 500 Company and a small ma-and-pop shop.
For small and medium-sized businesses, this offers a great opportunity for competitive advantage.
Business between friends
Small business is built on the premise of buying and selling from friends, neighbours, and other local small businesses. In fact, small businesses help to form the very fabric that makes up the identity of a community.
It makes sense then, that the giving choices of small businesses have a deeper impact than those of large corporations. Sure, large companies might have the ability to give a large sum in your community, but your smaller local giving may have as much or more impact on growing your customers.
Price isn’t everything
Big businesses may be able to sell things for less, but knowing what you give to locally may sway people to buy from you anyway. A good local community investment strategy can make the difference in drawing customers to your small shop or local service. In fact, research shows that consumers are more likely to buy from socially-conscious businesses, even at a higher price.
Small Business, Big Impact
Think large corporations are the only ones with a big enough footprint to make significant change? Think again. Today, small and medium-sized businesses (SMEs) represent about 90% of businesses and more than 50% of employment worldwide.
Perhaps even more surprising are the statistics on the impact that SMEs actually have through giving. One study showed that SMEs give 250% more than larger businesses to charity. SMEs also tend to give more of their profits than big businesses – 75% giving more than 6%.
Your local giving, alongside other small businesses, is important to your local community and the charitable sector overall. But it should have a great bottom line for your small business too, which is why a clear strategy is so important.
(Click here to learn about how to develop your giving strategy.)
