An independent business is a business that is free from outside control. It usually means a privately owned establishment, as opposed to a public limited company, the latter of which is owned by investment shares traded in the stock market. In many cases, independent businesses are sole proprietorship companies.[1]
These businesses are often local small businesses that may be recruited for membership in an Independent Business Alliance, or participate in a Local First or Buy Local campaign. To be considered for these campaigns, Independent businesses are often defined as private, worker or cooperative or community ownership, minimum of 50% of the business is locally owned, decision-making authority is in the local business owners and the business has limited outlets and range geographically. [2]
Local, independent businesses have been linked to higher income and less inequality; "In 2013, for example, an economist at the Federal Reserve Bank of Atlanta found that counties with larger shares of local small businesses outperform their peers on three critical economic indicators: they have stronger per capita income growth, faster employment growth, and lower poverty rates."[3] Independent businesses also generate a higher rate of tax revenue at lower cost to the public.[4]
See also
References
- ^ Masters, Terry. "The 5 Main Characteristics of Proprietorship". AzCentral. Retrieved 25 October 2014.
- ^ "» What is a Local Independent Business? (suggested definition)". Retrieved 2020-05-14.
- ^ Donahue |, Marie (2018-07-23). "Why Care about Independent, Locally Owned Businesses?". Institute for Local Self-Reliance. Retrieved 2020-05-14.
- ^ Minicozzi, Joe (2013). ""Thinking Differently About Development."". Government Finance Review.