Independent Business

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

• Ownership
• Privately held company

References

External links

• American Independent Business Alliance
• National Federation of Independent Business

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