More than just a marketing tactic, genuine community engagement can set your business up for greater success by fostering authentic connections and generating positive interactions with community members, employees, and other stakeholders.
What is a community engagement strategy and why is it important?
Small businesses play a crucial and multifaceted role in their communities by contributing to the local economy and culture. As such, small businesses have a responsibility to make a difference. Contrary to popular belief, business profitability and purpose are not mutually exclusive. In fact, creating shared value can help small businesses—and the communities they serve—thrive.
A positive reputation is a priceless asset for any business. When a small business participates in local events, sponsors community projects, and supports charitable causes, it shows that you care—and that you're committed to helping the community you serve. These initiatives not only attract new customers, they foster trust, build loyalty, and enhance brand visibility. The emotional connection formed through community engagement and philanthropy creates a bond that goes beyond a transactional relationship.
Small businesses contribute to local economies by generating income, creating jobs, and stimulating economic growth. The 2022 Small Business Economic Impact Study found that $0.68 of every dollar spent at a small business stays in the local community and creates an additional $0.48 in local business activity. But beyond the financial benefits, community involvement gives you invaluable opportunities to support causes you care about while growing your network.
Community engagement not only helps your business, it has been proven to improve employee engagement. Employees are increasingly interested in philanthropy, volunteerism, and working for a company that aligns with their values. A survey by Fidelity Investments found that 66% of respondents felt it was important for companies to be philanthropic and to support different causes. Among Millennials, this rose to 75%. A feeling of connection leads to higher employee engagement, which in turn drives performance, happiness, and loyalty.
As a community bank, Stellar Bank is enormously committed to empowering our Texas families, friends, coworkers, and neighbors to thrive. We’re focused on supporting the local economy in every way—by donating our time and talents as well as our money. So far, we’ve served over 3,000 hours, contributed more than $1.1 million, and supported 450 organizations and counting.
Learn more about how we support local businesses and give back to our community here.