Rose Stuckey Kirk is Senior Vice President and Chief CSR officer for Verizon. Watch Rose Stuckey Kirk at Aspen Ideas Festival 2021.
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The largest corporations depend on the smallest enterprises not only to fuel a healthy economy but also as vendors, customers, partners and innovators. Small business is the backbone of the U.S. economy and the engine that drives our communities. For the U.S. overall, small businesses create new jobs and help to drive innovation and competitiveness. Without small businesses, over 99% of U.S. employers and 33% of export value would vanish (as of 2016, per U.S. Small Business Administration data), and about 65% of net new job creation between 2000 and 2018 would have too. We’d all feel the negative impact.
But even as small businesses recover from the effects of the pandemic, they face new headwinds, as the third annual Verizon State of Small Business Survey conducted by Morning Consult finds. The survey found that:
• 82% struggle with inflation’s rising costs, which can mean life or death to many merchants that are already operating on a shoestring as their customers cut back.
• 72% feel financially insecure, an increase from 66% last year and even worse than the 67% during the depths of the pandemic in 2020.
• 65% of retailers, including most food and beverage companies, are concerned about inventory as supply chain disruptions continue, while 66% worry about cash flow.
• 44% of small businesses think that supply chain issues could affect sales during the crucial holiday season.
Further, a recent survey by Kabbage (via CNBC) found that 75% of small-business owners and operators surveyed said inflationary pressure had affected their bottom line over the last year.
Given that small businesses are continuing to face challenges, what can large businesses do to help? First, they can commit to supporting small businesses, especially those owned by women and people of color and that are in under-resourced areas, something Verizon has done.
Throughout our work and support of small businesses, we’ve learned a few things. While I don’t have all of the answers, I would like to share a few ways that large enterprises can support small businesses:
Coaching, Mentoring And Networking
It’s important for large corporations to devote people, time and resources to help small businesses create a plan of action that positions them for short- and long-term success. Expert guidance and mentoring can help small businesses streamline their operations and supply chains, bolster their sales and marketing strategies, shore up their finances, and strengthen other function areas to help drive positive business outcomes. Large enterprises can also help small-business owners network with peers and customers as a way to raise their visibility and bolster their credibility, which could, in some cases, help to stimulate sales.
Financial Support
Capital is another essential tool that small businesses need to evolve from surviving to thriving in the long term. For its part, Verizon has offered a series of small-business grants. As corporations strive to fulfill their social responsibilities, they should consider partnerships with community-based and national organizations that focus on providing grants or loans to small businesses—whether to suppliers or those serving under-resourced communities.
Encouraging Their Networks To Shop Small
During the holidays and throughout the year, large companies can encourage their staff and others within their ecosystems to shop small. “Choosing to shop small is choosing to invest in your community,” the U.S. Chamber of Commerce said during last year’s holiday shopping season in an article titled Shopping Small Benefits More Than Just Local Businesses. Encourage that in any way possible.
Like many Americans, small business means a lot to me, not just at my job but also personally. My father was a small-business owner in Pine Bluff, Arkansas, where I grew up. Big businesses should always remember the small businesses that many came from—and help them realize their full potential.
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