For years now, we have heard that Amazon and the big chains are crushing small businesses, but independent bookstores are suddenly making a comeback.
About 422 new indie bookshops opened in 2025, according to the American Booksellers Association, a 31% rise from 2024. Countless independent restaurants, coffee shops, fitness centers, movie theaters, clothing stores and other small businesses also continue to thrive even in this era of ever-bigger retailers, fast-casual restaurants and massive e-commerce platforms.
The reasons are obvious.
For starters, we live in a big country. There are 360 million Americans spread out across 4m sq miles of land. Big companies can’t cover all that ground, and even if they could, it’s irrelevant. There were too many different preferences, tastes, likes, dislikes and penchants that will drive consumers to any different type of retailer that they choose.
There’s also no shortage of entrepreneurism and independence in this country. For the past few years, there have been between 400,000 and 500,000 new business applications filed every month! Millions of people want to own businesses and be their own boss, and these people will find their unique way to present their business products and services to their customers in order to earn a livelihood. The more the economy consolidates, the more opportunity there is at the edges.
It’s generally better and more enjoyable for people who work in small businesses, which is why, despite the compensation that larger organizations can offer, small businesses make up half of the country’s workforce. It always amazes me when I see clients who are clearly paying their employees less money than they could earn at a big company, retain those employees let alone attract new ones. Why? It’s because when you work at a small business, there is less bureaucracy and more flexibility and more of a chance to make a difference than when you work at a bigger company. The smartest owners of independent businesses realize this and leverage these advantages to recruit people that are committed, loyal and believe in what their leader is trying to do.
Independently owned businesses tend to have more of a connection with their communities, which, in turn, generates more loyalty and attention to their promotions, activities and special holidays commemorating their existence such as Small Business Saturday and National Small Business Week. As opposed to the chain store, they create an image of the Main Street merchant fighting the system.
As a result, people like to show they care for their communities by supporting their small businesses, even if prices may be slightly higher. Consumers don’t just tolerate small businesses – increasingly, they choose them as a reaction against big corporations. And these businesses also give back in the form of sponsoring Little League teams, holding charity events and leading local chambers of commerce and rotary clubs.
Small businesses fill a void that big businesses don’t. Big companies scale efficiency. Small businesses scale relevance.
The Barnes & Noble outlet near me has to meet their numbers each month and is focused entirely on moving product to make the most of every square inch of space. It’s not as profitable as a location to inventory slower-selling titles, even if there’s an audience for them. Small businesses fill in that space. They sell more obscure books that only a small percentage of people will buy. Big companies optimize for scale. Small businesses win by ignoring it.
Small business owners earn, on average, about $80,000 a year. Their businesses – particularly if they’re a single location – tend to be less profitable than a chain store because they don’t have economies of scale. But these business owners, as long as their bills are being paid, often times prefer the flexibility and individuality of being their own boss and are willing to take home less pay for that freedom. As a result, independent businesses can be more flexible with pricing and less bureaucratic about their discounts and sales policies in order to keep their customers’ happy.
Believe it or not, many suppliers and landlords also prefer to work with smaller companies. Big companies routinely take longer to pay, are difficult to penetrate for collection and retain a staff of salaried workers in their accounting departments that still get their paycheck every week regardless if a payment is late. Having a small business customer or tenant means dealing with the owner directly if there are any problems, and working with someone who is often more reliable in buying products or occupying a space that’s too small for a bigger fish to consider.
This isn’t to say that independent business owners aren’t at a significant disadvantage to their larger counterparts. Inflation, tariffs, regulations and taxes hit them harder. Competition is fierce. Ad agencies, PR firms, online platforms and social media sites give preference to larger clients with deeper pockets. Standards, processes, procedures and systems are harder to formalize. Technology is more disruptive. Resources are lower. Stress levels are higher. Economic shifts are tougher to endure.
But independent businesses can be more niche and focus on a certain type of clientele. They can pivot quicker, add or delete product lines, start or end a service, or hire and fire a poorly performing worker faster. Decisions are made quicker. If they want to expand, they can. If they don’t, they don’t.
All of these reasons explain the success of the independent bookstore owner, the retailer, the restaurateur. Whenever you read of the big corporate giant eating up its smaller competitors, don’t get worried. There’s plenty of room for independent small business in this country, and there always will be. Big companies will keep getting bigger. But they’ll never be everything – and that’s exactly where small businesses win.
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