Question

Why are small businesses
important to a
country's economy?

Answer 1

Small businesses are important because they provide Growth within the economy. They provide laborers in small community or rural areas job opportunities. Due to the fact that small businesses have small amount of employees and a small target market they can effectively specialize in niche marketing. This produces goods on a small scale, which means they are more likely to produce goods from local resources. This means they are more likely to produce goods from backward linkages.

Answer 2

Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established.

Step-by-step explanation: