Everywhere you look, there are companies out there engaging in community involvement. In my hometown of Fort Wayne, Indiana, we recently have seen Vera Bradley sponsor golf and tennis events to raise money for breast cancer research, and the Culver’s restaurants donating 20 percent of a particular day’s sales to the Honor Flight program for U.S. military veterans. Other companies collect money on an ongoing basis for such worthy causes as the Riley Hospital for Children, donate money or their employees’ time to local not-for-profit organizations, sponsor fundraisers for their favorite charities, or offer free presentations to educate the public about a particular topic that is close to their heart or their corporate mission.
These companies are part of a growing trend for businesses to become socially responsible. In a 2015 study completed by Cone Communications in partnership with Ebiquity Research, 91 percent of consumers from around the world felt that companies should do more than make money; they believed that corporations should also “operate responsibly to address social and environmental issues.” This belief coincides with a previous finding from Cone’s 2013 Social Impact Study that the “U.S. consumer likelihood to opt for brands associated with a cause, given comparable price and quality, has jumped from two-thirds of the population in 1993 to nearly the entire population in 2013,” an expectation that continues, based on later studies from 2014 to 2016.
WHY COMMUNITY INVOLVEMENT IS A MUST
So, what does all of this have to do with you, a small business owner who is considering becoming more involved in your community or in global causes? It has to do with this: evidence shows why you must make community involvement a priority, according to strategy consultant Bea Boccalandro—not only for the good generated, but also for the potential benefits to your business!
To gain a better perspective, I and my colleagues at the Northeast ISBDC identified several of our small-business clients who are very engaged in their communities (I call them our “hometown heroes”) and asked them to complete a survey about their activities. Five entrepreneurs completed the survey, which produced insightful responses that shed more light on the importance of community involvement for small business:
All of the NE-ISBDC small-business clients host worthwhile community events and/or participate in such events, which may or may not be directly related to their industry.
All of these entrepreneurs offer free educational presentations or training in their communities to provide valuable information related to their chosen cause and/or their company’s products and services.
Three out of the five small-business owners currently chair or serve on the board of directors for one or more local not-for-profit or civic organizations, making a difference in their communities.
All of the small businesses have reaped the benefits of their owners’ participation in community service.
INTRODUCING FIVE ‘HOMETOWN HEROES’:
Let’s take a look at these five “hometown heroes” who are very active in their local communities in Northeast Indiana (click on their names to learn more about these entrepreneurs):
LESLEE HILL is a certified image consultant who founded Hill Image, LLC to help individuals improve their appearance and wardrobes. She believes that volunteerism “not only is important to help build and elevate the community in which we work, but deeper connections are made when you are working for a larger purpose than just your business.” Leslee has chaired or served on the boards of local women’s and arts organizations, interacted with local universities on student projects and donated her time and talents to present free image-related workshops for local not-for-profits. These volunteer activities have provided valuable connections and client referrals while allowing her to have a positive impact on her hometown. Her take on community involvement: “It is a MUST. Entrepreneurs have a unique opportunity and an obligation to create a better place to live. . . . As far as a personal gain for our companies, you HAVE to know people, be trusted by people. The best way to do that is to put your creative ideas to good use and show the ‘movers and shakers’ what you’ve got.”
ALEX CORNWELL owns and publishes The Waynedale News, a weekly newspaper devoted to his hometown of Waynedale, a close-knit community located within the Fort Wayne city limits. While creating community awareness through his newspaper, the young entrepreneur has gone out of his way to ensure that Waynedale is a great place to live. He co-founded the Waynedale Business Chamber in 2015 and co-founded a community improvement team, making significant strides to improve the business district that have led to higher property values and an energized business environment. But his volunteerism doesn’t stop there. His civic activities include being a co-planner and sponsor of his hometown’s annual community picnic, membership chair of the local Lion’s Club, a board member for the Southwest Conservation Club, and the president of his homeowners’ association. In addition to putting Waynedale “on the map,” his community service “has grown our clientele base, reinvigorated a positive image for the company, created more awareness and improved our business building’s property values,” he said.
LISA COMPTON is the founder and president of SensoryCritters.com, a company that designs and manufactures therapeutic weighted products (i.e., blankets and vests, etc.) and creates multi-sensory environments that help people with autism, sensory-processing disorder, learning disabilities and other challenges to increase concentration, sleep better at night, and provide a calming influence. Since its inception in 2006, SensoryCritters.com has organized, sponsored and/or participated in various community walks that raise money for autism awareness and research. Lisa is well known in her hometown as being a valuable contact for area families who have questions and/or need resources related to their child’s special needs, and she has gained national attention for being a resource for autism providers, as well as agencies and schools that serve individuals with disabilities. She also shares her knowledge and expertise by presenting free educational programs. All of these activities have provided connections and credibility for SensoryCritters.com. Lisa believes that “becoming involved in your community allows you to know who is living in your community and what the needs are of those individuals that relate to your passion.”
LORI BERNDT is the owner of The Olive Twist, Inc., which operates two popular retail stores in Fort Wayne and Auburn with tasting bars that allow customers to experience natural olive oils and balsamic vinegars in various flavors, along with a variety of gourmet food, culinary products and healthy recipes. In addition to serving as chair of the Downtown Auburn Business Association in her hometown, Lori is well known for her Olive Oil 101 programs that educate the public about how to select and use extra-virgin olive oil. She offers Olive Oil 101 at various area colleges and also provides free educational programs for local churches and not-for-profits. Her community involvement has raised public awareness about the benefits of a healthy diet while also creating interest in The Olive Twist and generating more customers. She believes that community service increases visibility and credibility and allows business owners “to better understand a community and to feel a part of something they are passionate about.”
MELINDA DAVENPORT owns Melinda’s Balloons & Decorations, a retail store in the Waynedale area of Fort Wayne that offers festive balloons, fresh and silk flower arrangements, home décor, and event decorating. Being a one-person operation, Melinda is restricted from participating in most volunteer activities; instead, she uses her store as a beacon to the local community. During the school year, she welcomes special-needs students from a nearby high school to her store, providing them with real-world job skills training. “My work with special needs students allows me to be a part of their lives—by teaching, encouraging and caring for them,” she reflects. Her caring attitude also extends to neighborhood children, who are welcomed to her store on Saturdays for a book club that encourages their reading skills. Melinda also uses her store to conduct food drives for needy families during the holiday season, and volunteers her time and talent to decorate her church. While she cannot point to specific evidence that her community service has benefited her store, her activities have provided valuable awareness and connections for her small business that resulted in new customers.
HOW NEW BUSINESSES CAN BECOME INVOLVED
The above profiles provide a variety of ideas for getting involved in your community and demonstrate how your involvement may benefit your business. Our “hometown heroes” also offer some suggestions to new business owners considering taking the plunge into community involvement:
“My advice is to take care of your business first. Don’t say yes to every request. Set a policy of what your company will focus on, the amount of donation, and employee expectations toward involvement,” Compton said. She points out that “Community involvement is engaging and important, but it can also overtake a small company—so putting policies in place from the beginning is critical.”
Cornwell’s suggestions closely align with Compton’s: “From a financial and time commitment standpoint, new business owners should give only what they can. . . . Look after your primary business first and then when the business is stable and you are comfortable taking on more, become involved in the community. The rewards of community involvement and service are great, but a business owner must look after the business livelihood first. When ready, I recommend choosing a community group or organization that you are passionate about, connected with the type of business you do, or what might directly impact the wellbeing of your business.”
“Give, give, give, and it will come back to you threefold,” Berndt believes. “Always have faith and look for what you can do for someone else, not what they can do for you.”
FOR FURTHER READING:
The Power of Giving Back: How Community Involvement Can Boost Your Bottom Line: https://www.entrepreneur.com/article/226974
How Does Community Involvement Benefit the Business? http://corporatecitizenship.bc.edu/how-does-community-involvement-benefit-the-business
19 Compelling Business Reasons for Corporate Community Involvement: http://www.business4better.org/blog/?p=737
The Importance of Community Service to Your Business: http://www.the1thing.com/blog/small-business-advice/the-importance-of-community-service-for-your-business/
Community Involvement Helps Generate Capital: http://accesstocapital.com/community-involvement-helps-generate-capital/
Business Involvement in the Community: Everyone Wins https://www.bfscapital.com/blog/small-business-community-involvement/
Entrepreneurs Should Be Community Leaders: http://www.forbes.com/sites/patrickhull/2013/10/04/entrepreneurs-should-be-community-leaders/print/
Community Involvement is Smart Business for Women Entrepreneurs: http://www.triplepundit.com/2014/06/community-involvement-smart-business-women-entrepreneurs/#
Philanthropic Strategies for Entrepreneurs and Business Owners: http://www.ustrust.com/ust/pages/ArticleViewer.aspx?Title=Philanthropic-Strategies-for-Entrepreneurs-and-Business-Owners