Small businesses are the backbone of our province. Beyond their economic impact, they are uniquely positioned to strengthen community bonds and drive positive local change.
When businesses engage with communities, everyone benefits. By actively participating in the community where your business operates, you build trust, foster loyalty, and enhance your reputation. A strategic approach to community engagement will create a cycle of betterment and shared value for your business and community.
Why local engagement matters
The Harvard Business Review has established the competitive benefits of corporate philanthropy. Doing good helps “improve the quality of the business by combining social and economic goals, which can lead to better business opportunities in the future.”
Community engagement is about creating authentic connections that benefit both your business and your local area. Unlike most corporate philanthropy, small business engagement often means direct, personal involvement that creates a lasting impact.
Key benefits
Stronger local relationships
Building genuine connections with customers forms the foundation of community trust. These relationships naturally lead to powerful word-of-mouth marketing through community networks. You'll develop valuable partnerships with other local businesses while strengthening ties with community leaders and decision-makers.
Enhanced business visibility
Community involvement organically grows local brand awareness, creating authentic storytelling opportunities for your business. This engagement often generates positive online and media coverage and builds your reputation through meaningful community presence.
Customer loyalty and growth
Community engagement deepens customer relationships beyond simple transactions, attracting customers who value local businesses. Through community trust, you'll see increased repeat business and gain valuable insights into local market needs.
Employee satisfaction
An engaged local business creates a more meaningful work environment that helps attract and retain local talent. Community involvement will improve your team's morale, while local initiatives will help employees develop leadership skills.
Competitive advantage
Strong community engagement differentiates your business from larger competitors through unique value creation based on local knowledge. You'll build natural barriers to entry through deep community relationships while developing business resilience through community support.
Business development
Community involvement opens valuable networking opportunities and helps identify new business possibilities. You can create mutually beneficial partnerships with other local businesses while building a strong foundation for sustainable growth.
How to engage with your community
The phrase "local community" means different things to different businesses, and your engagement strategy should reflect your unique position in the local ecosystem. A neighbourhood coffee shop, for instance, might focus on highly localized activities like hosting community meetings and supporting local artists. In contrast, an auto repair shop might serve a broader area through educational workshops and youth sports sponsorships. The key is identifying engagement opportunities that authentically connect your business capabilities with community needs. Focus on creating meaningful connections that make sense for your specific business model and customer base.
Engagement opportunities for small businesses include:
- Local events: Attend or sponsor farmers’ markets, festivals, or charitable runs (e.g., Terry Fox Run).
- Collaborate with non-profits: Partner with organizations like local food banks.
- Volunteer programs: Encourage employees to volunteer as a team at local events and fundraisers.
- Social media engagement: Use platforms like Instagram and Facebook to spotlight your community efforts.
- Customer-centric initiatives: Organize workshops or host Q&A sessions for customers.
- Sponsoring a local sports or school team: Youth development programs often have a broad community impact.
Non-profit Alberta’s Promise created a toolkit for giving back in Alberta that sets out a series of strategic elements:
- Define your business goals for giving/engagement
- Determine your priorities
- Identify your resources and budget
- Select your partners
- Manage and evaluate your program
It’s smart to start small. Pick one or two initiatives that align with your values. Focus on authenticity to avoid being perceived as opportunistic. Monitor engagement metrics and customer feedback.
For more details, access the complete toolkit, Creating a Community Involvement Program for Your Small Business.
Bottom line
Small businesses can create authentic, direct community impact that resonates locally. Small businesses build lasting relationships supporting business success and community vitality by actively engaging in community life. This genuine local involvement creates a competitive advantage that national chains and online retailers cannot match.
Tap into a community of support with ATB’s Alberta Entrepreneur Resource Network. It’s a central hub, designed for entrepreneurs and small businesses at every stage to connect with a variety of organizations that can help you learn, grow, and get involved.
At ATB, we’re committed to uplifting the legacies and livelihood of Albertans and their businesses. Driven by our values, we sponsor events and organizations that align with them. Learn more about our areas of focus and eligibility.
