Hello, my name's Mrs. Tomassi, and I'm here to work with you on your citizenship lesson today.

If you've got everything you need, you're all settled and you're all good to go, we will make a start.

So today's lesson title is How can communities improve the local economy? And this forms part of the unit on How does the economy support sustainability? So hopefully by the end of today's lesson, you'll be able to explain what businesses make up my local economy and how small businesses contribute to the local economy.

There are gonna be two keywords in this lesson.

To start with, it's local economy.

They are all business activity and wealth creation in a specific area, town, or community.

The second one is small business.

These are independently owned companies that contribute to local employment and the local economy.

They contain 0 to 49 employees.

That's the key part there, is the 0 to 49 employees.

If you ever need to, then you can refer back to them, or you're not too sure what they mean, you'll see them in bold and you can refer back to them here.

So we're gonna make a start with the first of two learning cycles today.

The first one is, What businesses make up my local economy? So a local economy is, do you know what it is? It's a variety of businesses that provide good services and employment to residents.

Can you think of any examples in your local area? If you thought of anything that's like retail shops or restaurants, markets, financial institutions, social enterprises, community-run businesses like cooperatives, any of those kind of examples would be examples of businesses that support local economies.

And even better if you could think of some in your own area.

So each type plays a unique role.

They all have different roles that they do to ensure money stays within that local area and benefits that community.

Strong local economies support job opportunities.

So what do you think they might be doing? So these are the local economies that are opening new businesses, and what this is offering is jobs for the local residents and that therefore can help to improve their quality of life.

It also means that people have access to goods and services that they need to without relying too much on big national or international businesses, because they can use their local area for what they need.

Sam says here, "My community doesn't have a very strong local economy.

Lots of the small businesses have shut down due to high rent and low customer numbers now the new big supermarket is opened." And andeep says, "My local economy is strong.

We have markets every week and have lots of small businesses that are thriving.

Our council paid some of their rent so they could continue to trade." So this is a good example of the differences that can occur in different local areas depending on how the local economy is.

Now, retail businesses, like Sam is there, are a key part of any local economy.

Things like markets, independent shops, family-run, small businesses all contribute by selling goods directly to the public.

So to give you an example, Brixton Market in London is well known for its diverse range of products and particularly African and Caribbean food stalls which attract both local shoppers and visitors from across London.

It's these kind of markets that help to boost local economies.

Unlike large supermarkets, local markets allow small businesses to continue to grow.

They often sell unique or specialist products that reflect the culture and diversity of that area.

And what this means is they're offering something that maybe the larger supermarkets aren't able to do, and also offering something that residents might buy into 'cause they understand the culture and diversity of that area.

So markets create social spaces as well, where people meet each other and help build a sense of community.

Have you ever been to a market? If you have, think about the vibe that you get there.

You know, how people are able to chat to each other.

It tends to be quite uplifting and people get to know each other as well.

So that's how, it's an example of building that sense of community.

Check for understanding now.

Complete the sentences below with the correct words in the box.

A local economy is made up of businesses that provide goods, services, and, to residents.

A strong local economy means people shouldn't have to rely on big, or, businesses for their goods and services.

Brixton Market is well known for its, range of products, especially African and Caribbean food stalls.

You've got the six gaps there.

Take some time, see if you can work out which goes in each box.

How did you get on? So the first one, that's unemployment to residents.

Now, the second one is big national or international businesses.

Then Brixton market is well known for its diverse range of products, and markets also create social spaces and that helps to build a sense of community.

Well done if you managed to get that.

And now we will move on and have a look at financial institutions.

Now, when we say finance, if you think about that, what does that mean? Can you link that to money? Then you might be able to understand what some of these institutions are that we're talking about.

So these are things like credit unions, local banks, banking hubs, anywhere that deals with the financial side.

And these are also essential to local economies.

Can you think, why might financial institutions be essential? To give you an example, the London Mutual Credit Union helps people manage their money by offering loans and savings accounts at lower interest rates than many high street banks.

So if we're thinking about the local economy, in order for it to get better, what do we need more people doing? Well, we need them spending money and buying more in the local economy.

So sometimes, in order to do that, they might need better ways of managing their money.

These institutions and how their interest rates are could impact the local economy as well.

So unlike traditional banks, credit unions are not-for-profit organisations.

Have you come across that word before? So, it kind of says it in it, not-for-profit.

So it's this idea that they are reinvesting their earnings back into the community.

And what this does is it helps people who might struggle to get financial support elsewhere and make sure the money circulates locally rather than going to large bank corporations.

Then we've got social enterprises.

Again, have you heard of that before? If you've heard of social, and an enterprise tends to be businesslike, so these social enterprises are aiming to benefit the society as well as making a profit.

So give you an example of this one, Staffordshire Community Energy is a non-profit in Staffordshire, working with partners to deliver clean energy that benefits people, places, and the planet.

This cooperative started with a shared vision for a cleaner, more sustainable future that creates both social value and reduces carbon.

So it's an example of a small business that benefits the community in multiple ways, 'cause, can you think why? So it's supporting the employment in the local area, protecting the environment, and encouraging scientific research.

So it's all about supporting that local community.

Check for understanding now.

Decide whether the following statements are true or false and tick the correct column.

The London Mutual Credit Union is a for-profit bank that operates nationwide.

The Remakery turns waste materials into new products while supporting local jobs, and social enterprises seek to help the community.

True or false? How did you get on? So that first one is false.

Can you remember the word? It's not-for-profit.

The Remakery is true.

It's supporting new jobs, turning waste into products, and social enterprises do seek to help the community, so that's true as well.

Great job.

Now, we'll have a look a bit deeper.

So community businesses are owned and run by the local people.

They also help to strengthen the local economy.

Again, start to have a think why.

Small businesses run as, like, community-run shops, cooperatives, cafes, pubs, and they reinvest their profits back into the area rather than being owned by shareholders or large corporations.

So again, it's this idea of bringing the money back to the community, which in turn, if we think about the local economy, it's helping to circulate it back round and boost that local area.

It means it helps to create more jobs and ensures the money stays in the local economy, like we were saying, rather than being sent to national or international companies.

A strong local economy reduces dependency on large businesses, making communities more self-sufficient and resilient.

Do you know what those two words mean? So self-sufficient.

Self-sufficient.

Think of the word self there.

So they can rely on themselves rather than having to heavily rely on importing or on those larger international and international businesses.

And it makes them more resilient.

So when you might be struggling, they're gonna keep going and they're gonna keep finding ways to carry on.

In this case with the local economy, if they know that they can do it, they're gonna keep pushing and trying to get through them harder times, 'cause they know the good will come out of it again.

So check for understanding again.

Can you study this image and answer these two questions? How can you tell this community has a strong local economy? The second question, what do some of these community-run shops do with their profits? If you need a bit of extra time, you could always pause.

If not, can you work it out? So how did you get on? So it's a strong local economy because there are small businesses on the high street and not as many big national shops, which shows the local economy is thriving.

And the community-run shops, some of these shops are not-for-profit because they put their money back into the community.

This ensures that the money circulates locally rather than going to large corporations.

It helps to create a strong local economy.

Now, that moves us on to task A for today.

Can you write two paragraphs explaining the different type of businesses that make up a local economy and how they contribute to the community? Use examples to support your answer.

You must include at least three types of businesses in a local economy, e.

g.

retail, financial institutions, social enterprises, community businesses, at least one example of each type of small business, and explain how it helps the local area and the terms such as local economy, employment, services, investment, and taxation.

You might need a bit of time to prepare that and to read through it again, so take some time now, if you pause, and then when you're ready with your answer, we can come and feedback.

How did you find that task? Now, your answer could have looked like this.

So a local economy is made up of different types of businesses that provide goods, services, and jobs to the community.

Retail businesses such as Brixton Market sell essential products like fresh food and clothing, helping people access what they need while keeping money circulating locally.

Financial institutions like the London Mutual Credit Union offer services such as savings accounts and loans which help residents manage their money and support local investment.

Social enterprises such as The Remakery also play an important role by providing jobs while benefiting society, for example, by reducing waste.

Finally, community-run businesses such as local shops or cafes owned by residents reinvest their profits into local projects rather than sending money to big corporations.

Together, these small businesses help create jobs, strengthen the community, and ensure that money stays in the local economy, making the area more self-sufficient and prosperous.

How did you find that? Now, some of your examples could have been from your local area, and that would be brilliant.

That means that you are able to see first-hand how local economies can impact your area as well.

Now, we're gonna move on to the second learning cycle for today.

So this is now, How do small businesses contribute to the economy? So small businesses are crucial in the economy as a whole, making up a large percentage of the UK's total businesses.

Now, this is a real test of memory.

We had a look at the keyword at the start.

Can you remember how many people small businesses employ? Small business is defined as one that has between 0 to 49 employees.

Brilliant if you remembered that.

And the government reported that at the start of 2024, there were approximately 5.

5 million private sector businesses in the UK.

Of these, 5.

45 million were small businesses, accounting for 99.

2% of the total businesses in the private sector.

So when we say small businesses are crucial, this is why, that is a huge percentage.

So this highlights the significant role small businesses play in both the national and local economies.

What kind of things can we think of when we think of small businesses? Any ideas? Small businesses range from family-run shops and local restaurants to independent tradespeople and online sellers.

There are such a variety that it could be.

Now, despite their size, they play a huge role in providing employment, generating income, and keeping local high streets alive.

Again, we started to see a little bit of that in the first learning cycle, so you can start to think of some reasons why.

Unlike the large chains, small business are often more flexible and responsive to the needs of their community, providing niche products and personalised services.

And again, these can differ from each area.

So maybe, if you think of your own local area, and if you've ever been to a different area, have you seen different products being sold? 'Cause you might see that actually one community has different needs and requires different products for the area that they are in.

So one of the biggest contributions that small businesses have is through job creation.

Now, that is where we are creating the jobs for people.

So they employ local people, often offering jobs that suit a wide range of skills from apprenticeships all the way up to managerial roles.

Employment in small businesses helps support families and individuals by giving them financial independence.

Do we know what that means? So if you're independent, you're able to do it on your own.

So if you're financially independent, you've then got your own money to be able to rely on.

And career development opportunities, so this is the idea that if they are an apprentice, they can work their way up, all the way up to the managerial role.

Check for understanding now.

Answer the question below.

How does employment in small businesses help support individuals and families? Employment in small businesses help support individuals and families by giving them financial independence and career development opportunities.

Great job if you got that.

We're gonna talk a bit more about small businesses.

So between 2023 and 2024, small businesses in the UK that are certified as B Corps, which are businesses that meet high social environmental standards, increased their employee numbers by 9.

6% in a year, compared to a decrease in employment in larger companies.

Just have a little think about why that might be.

It shows that small businesses play a significant role in maintaining employment levels.

These B Corps businesses are also 25% more likely to pay above the minimum wage, which keeps more money in the local economy.

What is one way small businesses contribute to the local economy? Is it A, reducing employment opportunities, B, increasing consumer spending, or C, limiting innovation and new ideas? Which one? It is B.

So well done if you've got that.

Now, small businesses also drive innovation by introducing unique products and services.

Any ideas what innovation is? So it is this idea of creating new ideas.

So that's where the unique products and services come from.

Now, small businesses aren't restricted by large corporation structures.

So they can adapt quite quickly to changes in the market and then they can respond to the customer's needs.

So it might be a case that they see something in the local community and they were able to adapt quickly to that.

To give you an example, so during the COVID-19 pandemic lockdowns, many small businesses changed to online platforms offering home delivery or new services to survive during the lockdowns.

This adaptability allowed them to stay open while large businesses struggled with supply chain issues.

Innovation also keeps high streets vibrant and competitive, preventing them from becoming dominated by just a few major brands.

Jacob says here, "My uncle set up a new online business during lockdown which only delivers to the local community.

His small business has improved the local economy and his bank balance." Sofia says, "My local shop still carried on with deliveries 'cause they realised how many vulnerable people were living in our communities, so now they get more help, which is great.

It also helps the local shop keep their business." And there's some great examples.

So we're gonna do a check for understanding now.

Each sentence is missing the same word.

Can you work out what it is and fill in the blanks? Small businesses drive, by introducing new products and services to meet local needs.

During challenges like the COVID-19 pandemic, businesses showed, by adapting and finding new ways to operate.

Mm, helps small businesses stay competitive, allowing them to grow and strengthen the local economy.

See if you can work out what word is missing.

Did you manage to work out? It was innovation that was missing.

And again, this shows how important innovation is for small businesses.

So small businesses also support the local economy through taxation, which helps fund public services.

When we say taxation, we're talking about taxes.

Business rates contribute to the budgets for schools, healthcare, road maintenance, a lot of different things in the local community.

And business rates are the rates that those businesses will pay, which will go to their local authority, and then they will use it to spend on some of those services.

Now, the local councils rely on this revenue to support investment in infrastructure, develop projects that improve living standards.

Without the taxes from small businesses, there'd be less funding for key services, making it harder for communities to grow and prosper.

Check for understanding now again, 'cause there's some tricky concepts in that.

So identify the mistakes in each statement and correct them.

Small businesses do not pay taxes, which decrease funding for local services.

Taxes from small businesses only benefit the national government, not the local community.

Did you manage to work it out? So they do pay taxes and that increases the funding, and they benefit both the national government and the local community.

Finally, small businesses contribute beyond just the local economy.

They help build strong, connected communities.

Many independent small businesses sponsor local events, donate to charities, or provide spaces for community activities.

For example, local bookshops often host reading groups, small cafes may hold music nights, and independent restaurants might source their food from local farms. So again, it's this idea of connecting the different people in the community together and together helping to make it stronger.

So it brings everyone together and it creates a sense of identity and pride in those areas as well.

People will be proud to be part of that local community, and this can help to improve their community spirit and wellbeing as well.

Check for understanding.

Explain which Oak National Academy pupil you agree with most and why.

Jun says, "I love my local shops, I go to the bakery and the butchers for my friend's mum who can't get out much, and I love my local news agent!" Laura says, "I prefer going to national shops because I can find out what they stock online before I go, and they always have lots of stock in." Who do you agree with most and why? So if you agreed with Jun, you might have said, "I like my local shops too, because they will order things that I asked for and I feel better knowing the money I spend is going back in the community and improving the local economy, rather than into profits of a national or international business.

Alternatively, you might have agreed with Laura and said, "I prefer ordering online and just picking it up from the shop, which is easier in large companies rather than local small businesses.

I think as long as the national economy stays strong, the local economy will too." Now, that leads us onto the final task for today.

So you've been asked to write the text for an information leaflet about how small businesses contribute to the local economy, which will be used to help local residents understand the importance of supporting small businesses.

Your text for the leaflet should include an instruction explaining why small businesses are important, four sections each focusing on a different way they contribute, so employment, taxes and public services, supporting other businesses, and innovation and growth.

Then, a short conclusion encouraging people to support small businesses.

Now, take your time here.

You can pause, you can go through each of those bullet points individually, to make sure that you've got everything included.

And if you want to, you could even design your leaflet and you could lay it out as well.

That's up to you.

So if you take some time, pause, and then when you're ready, we can feedback.

How did you get on with that? Now, your answer could look like this.

Why do small businesses matter? Small businesses are the backbone of the local economy.

They create jobs, keep money circulating in the community, and provide essential services.

Unlike large corporations, they're more connected to the people and needs of the area.

By supporting small businesses, we help our towns and cities grow, develop, and thrive.

Small businesses create jobs.

Small businesses provide employment for local people, offering opportunities at all levels, from apprenticeships to management roles.

They help reduce unemployment and give people the chance to develop skills and careers in their own communities.

For example, a local bakery hires staff for baking, customer services, and deliveries, keeping jobs in the area instead of outsourcing them.

This boosts the local economy.

Taxes from small businesses fund public services.

When small businesses pay taxes, they contribute to essential public services such as schools, hospitals, transport, and emergency services.

This money helps improve the local area and local economy for everyone.

Without these taxes, there would be less funding for vital services.

For example, a local cafe pays business rates that helps fund road repairs and better public transport.

Small businesses support other local businesses.

Unlike large chains, small businesses often buy from local suppliers rather than national or international companies.

This keeps money in the community and supports even more jobs.

When a small business buys fresh produce from a local farmer, both businesses benefit.

For example, an independent restaurant sources its ingredients from local farmers instead of importing food from other countries, keeps money circulating around the local economy.

Innovation and economic growth.

Small businesses are flexible, creative, introducing new products and services that improve the local economy.

They can quickly adapt to change, such as moving online during lockdowns or offering unique services to meet local demand.

This makes communities more resilient and competitive.

For example, a small clothing shop launches and online store to sell handmade products across the UK.

And finally, help your community support local businesses.

Next time you go shopping, choose a small business over a big chain.

Supporting local, small businesses keeps money in the community, creates jobs, and funds public services.

Together, we can make our local economy stronger.

Now, how did you go on with that? Obviously your information could have been different.

Maybe your examples were linked to your local area, which would be even better.

But all we're looking for there is that you manage to understand different ways that small businesses can contribute to the economy.

Now, that leads us onto the summary for today.

So to summarise, local economies consist of various businesses, including retail, shops, financial institutions, social enterprises, and community-run businesses, all contributing to growth and employment.

Retail markets like Brixton Market offer diverse products while institutions such as the London Mutual Credit Union support financial stability.

Small businesses create jobs, drive innovation, and reinvest locally, sustaining economic growth.

Taxes from businesses fund public services like schools, healthcare, and infrastructure, benefiting the community.

Communities also support charity, sponsor events, and strengthen local identity, making them vital for social development and a strong local economy.

And as I said, that summarises the lesson for today.

Hopefully you have a bit of a better understanding of how communities can improve the local economy.

Thanks so much for working with me today, and I hope you enjoy the rest of your day.