The increase in the number of businesses in your community is a sign of progress. It shows economic growth that can potentially bring about urbanization. As the quality of life improves due to a booming industry in the area, people are likely to transfer to that location. This is a reason cities are the most populated part of any country.
When there are companies that can cater to the needs of the inhabitants of an area, amenities are more accessible. This is one of the advantages of living in an urbanized location. Important establishments such as hospitals and supermarkets are often staples. Still, when these are supplemented by startups that focus on a specific market gap, people will no longer have to travel too far to avail of a service or purchase a product.
There are many other benefits that an individual can experience, such as more social welfare programs, better access to goods and services, and a higher employment rate. The government is aware of the positive impact businesses have, indicated by the support they provide, such as the relief of the IRS fresh start program. Being an entrepreneur in a community is incentivized because it is a step on the path toward community improvement. Here are some examples of how startups contribute to the development of an area:
More Taxes, More Programs
Although startups are incentivized by tax holidays, the successful ones are subjected to a significant levy by the government. As a result, there will be available funds that can be flushed into programs to provide services to those in need or improve the entire community’s quality of life. For example, the money can be used to pay for scholarship programs or an amelioration project of public spaces like a park.
Other possible programs could be focused on social welfare and getting people back on their feet after being unemployed or sick. These individuals often have no one else to turn to. Allowing them to feel supported by their government can encourage them to further their career development while reigniting trust in their officials. This is one way to build the resiliency of a community.
Better Goods and Services
As mentioned earlier, startups can be the solution for accessibility toward products and services that would be unavailable otherwise. They can meet market gaps that local shops cannot cater to, encouraging more community members to stay instead of migrating to other urbanized areas. It will be a lot easier for individuals to feel content when everything they need is available to them.
Furthermore, the increase in businesses offering the same products and services will be the healthy competition that will benefit consumers. Without competitors, companies can monopolize markets and charge hefty prices to their clients because they do not have a choice. As more startups are set up in the community, it can lead to a reduction in the prices of the goods and services and the improved quality of both. This is because businesses will do their best to beat the competition to get as much of the market share in their books.
Provides Employment
Needless to say, more employers will need more employees to make their business functional. When industries are set up, job vacancies will follow. Entrepreneurs are crucial for economies to function and grow. Therefore, they need to be supported in their pursuit of employing their fellowmen.
Once employed, the community members will become taxpayers who can provide for themselves and their families. This continues the cycle of levies that can be allocated to social amelioration programs that get people off the streets and on their feet. It is a positive feedback loop that requires a startup at the very beginning.
One of the reasons specific projects do not last very long is due to the lack of funding. By encouraging businesses to set up in their jurisdiction, governments hit many targets with one arrow. They can kickstart a loop of steady income for members of a community, and money can be earned for projects that will help the area improve and thrive.
Overall, the impact of startups in a community should be positive when handled correctly. As long as safeguards to the local culture and environment are in place, integrating a more urbanized perspective will be met with greater acceptance. Startups are created not just for themselves but also for the community where they are located. It is up to entrepreneurs to make the economy function well. Doing so, in turn, affects countless lives.
