Feb. 20: OPINION: BBB Business Tip: Local businesses gain an edge by leveraging community connections | Opinion

Small businesses competing against national brands may have more power than they realize, and the Better Business Bureau (BBB) says the key advantage is their strong local connection. According to BBB, community-oriented companies often resonate more deeply with customers than larger corporations, thanks to their authenticity, relatability, and neighbor-focused approach.

When consumers shop locally, they are not only purchasing a product or service, they are reinvesting in their own neighborhoods. The U.S. Chamber of Commerce notes that local spending helps fund public schools, parks, roads, sidewalks and essential services such as fire departments through sales tax revenue. As economic fluctuations push consumers to seek businesses that share their values, the “local factor” is increasingly shaping where people choose to spend their money.

Strengthening trust through neighborly service

BBB says one of the biggest advantages small businesses have is the ability to engage customers on a personal level. Whether delivering a job quote, sending a message, or having an in-person conversation, local companies can be more approachable and personable. Adding human touches, such as introducing team members by name or sharing community ties, helps build trust in ways larger brands often cannot replicate.

Encouraging local reviews

Local voices carry weight, and BBB encourages businesses to actively seek customer reviews. Strong online reputations can serve as digital word-of-mouth marketing, particularly on platforms like BBB.org and Google. Responding to feedback also shows customers that a business values transparency and accountability.

Targeting marketing efforts locally

BBB recommends that small businesses tailor their marketing strategies to connect with neighborhood consumers. This includes optimizing online listings with consistent addresses and phone numbers, participating in community events, advertising through local media and using social media tools to engage with nearby audiences. These grass-roots efforts help ensure a business appears in local search results and remains top of mind within its community.

Using the local factor to compete

While national brands benefit from scale and broad name recognition, BBB notes that small businesses can remain competitive by emphasizing what big companies cannot: authenticity, personal service and shared community interests. With consumers increasingly leaning toward organizations that reflect their local identity, now is the time for small businesses to highlight their roots and connection to the people they serve.

Want more ways to strengthen your business? Visit the BBB Business Resources page at bbb.org, or learn how to stand out from the crowd at bbb.org/get-accredited.

By Jan Diaz is the president and CEO of the Better Business Bureau serving Northern Indiana. The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for more than 110 years.