This document provides an overview of a thesis examining the contributions of small and medium enterprises (SMEs). It discusses how SMEs have significantly impacted local communities and the US economy through job creation, charitable donations, event sponsorships, and more. While SMEs have made large economic and social impacts, they have lagged in environmental initiatives due to lack of awareness of their impacts and legislation, as well as limited financial resources to enact changes.

1. Small and Medium Enterprises and their Impact on Local Communities
Cieara Juliano
CCSU Honors Thesis
May 2015
Advisor: Dr. Drew Harris

2. Table of Contents
Subject Page(s)
Introduction 1
Chapter One: Growth of Small
Businesses
2-7
Chapter Two: Small and Medium
Enterprises and Their Impact on
Communities and the Country as a Whole
8-13
Chapter Three: Corporate Social
Responsibility
14-19
Chapter Four: Case Study: East
Hampton, Connecticut
20-31
Conclusion 32-33
Appendix 34-38
Bibliography 39-41

3. Introduction
This thesis aims to explain the various contributions made by small and medium
enterprises for the advancement of their communities and its citizens. The chapters in this thesis
cover recent growth of small and medium sized businesses over the past twenty years in the
United States, how these SMEs have impacted their communities, states, and country as a whole,
the role corporate social responsibility plays in SMEs, and a case study of small businesses in
East Hampton, Connecticut and how they have impacted their town and state. My motivation for
writing about the aforementioned topic relates to my desire to open my own small business. I
feel small businesses in America are not getting the credit they deserve and I am working
towards pointing out the positive acts they do for society whether it be economically, socially, or
environmentally. In wanting to own my own small business there is nothing better than to do
extensive research on the growth of small businesses in the past two decades as well as
understanding the impacts these businesses have on society. This newfound knowledge will aid
me in understanding what the future has in store for small businesses in America. It will also
assist me coming up with ways that my future business can make an influence and contribute to
the community in which I will one day belong. I would like to thank Dr. Drew Harris, a
professor of Entrepreneurship and Business Strategy at Central Connecticut State University, for
advising me while I wrote this thesis. His guidance, knowledge, and reassurance lead me to
completing this work both on time and to the best of my ability. I would also like to thank my
fellow Honors Program colleagues for listening to all my ides, questions, and opinions; as well
as helping support myself and everyone else through this incredible experience.

4. Chapter One
Growth of Small Businesses
Over the past ten years the number of small startups opened have continually increased
leading to their extreme popularity today. Small businesses will be explained using the US
Small Business Administration’s definition, “a company with beginning year employment of less
than 500” (Audretsch and Link, 2011, p.142). Small business startups have been rapidly
growing, accompanied by a decreasing rate of failures. Since 1982 the number of small
businesses has increased 49% (sba.gov, 2015). This percentage is still growing. US small
businesses are not just growing in number, but also growing in operations (expanding
product/service base). This growth is dependent on a range of factors and is influenced by many
driving forces. The growth of small businesses also offers many benefits for both the firm and
its owner/s. Even during recessions, small businesses find the positives and utilize them to
expand.
For already established businesses, a major decision to be made by the owner/s is
whether or not to expand. Their decision is dependent on a variety of factors.
 The quality of management is an important aspect because if management does not have
the capability or drive to push the business forward it most likely will not grow any
farther.
 Customer preference deals with whether or not the customer is willing and/or able to
purchase more products/services from the firm, as well as if they are looking for a larger
variety of products/services. If the customer is looking for neither of these it would not
be beneficial for the firm to expand.

5.  Government policy can often restrict certain operations or pose certain taxes on firms that
would deter the owner/s from growth. Conversely, government policy can also offer
incentives for certain business activities that could be an encouragement for growth.
 Owner characteristics and behaviors can either drive a firm towards expansion, or act as a
deterrent. With owners that are motivated and have the desire for innovation, expansion
could almost be expected. Owners who are driven by perfecting their current
product/service, may not be focused on growth.
(Dobbs and Hamilton, 2006)
Motivations, marketing activities, employee interests, money lending, and innovation all
have one thing in common; they are all driving forces of growth.
 The motivations of the owner when first opening the business play a key role. A business
created with the intentions of “exploiting an opportunity” is more likely to grow (Dobbs
and Hamilton, 2006, p.308; Fadahunsi, 2012). In opposition, a business created with the
influence of negative drivers, such as unemployment or dissatisfaction with previous
employment, is most likely to become stabilized with no further growth (Dobbs and
Hamilton, 2006; Fadahunsi, 2012).
 The various levels of marketing and the means in which it is utilized affect the popularity
of the products/services offered by the firm. If marketing activities are increased with
more of a variety, the popularity of both the products/service and the firm will also
increase, leading to boosted profits and demand. Ultimately, this could result in firm
growth (Fadahunsi, 2012).
 Owners’ interests in the recruitment and training of employees can be a make or break
factor when aiming for expansion. Firms that attract potential employees and then takes

6. the time to understand and utilize their skills to their full extent have a high probability
for growth. Individuals that are acknowledged for their skills will be more inclined to
work harder and ultimately strive to increase profits (Dobbs and Hamilton, 2006). Firms
that believe in taking the time to train their workforce demonstrate a sense of caring
about their future opportunities, most likely leading to growth (Fadahunsi, 2012).
 Financially speaking, business owners that take out a loan to finance their firm may see
positive effects. Businesses with owners who share equity are more likely to grow and
do so at a faster rate than those that do not share equity (Dobbs and Hamilton, 2006;
Fadahunsi, 2012). This may be due to the availability of money that can build up a
business quickly, which will in time result in increased profits. These profits can then be
used to buy back equity and expand their product/service base.
 Firms which pursue product/service innovation and differentiation are aware of new
technologies and competition. This awareness allows them to better understand what
steps need to be taken in order to make their product/service stand out. When an
innovative or differentiated product/service is created, consumers direct their attention to
the firm behind it, often leading to major profits while exercising expansion at the same
time. (Dobbs and Hamilton, 2006) (See appendix) * DOBBS
There are many benefits for small businesses and their owner/s resulting from growth.
Often growth symbolizes high performance, implying the owner/s is receiving an increased
return on their investment, and is also an indicator of increased potential for survival (Dobbs and
Hamilton, 2006). Small businesses have many advantages that directly relate to their small size.
Small firms with few departments/operations are flexible. When the market shifts, small firms
can react quickly. Small businesses are also personal, meaning they easily and directly interact

7. with their customers. The owners are recognized for knowing their customers personally, taking
the time to interact with them and ensuring they are pleased with their experience they have had
while doing business with the firm. Compared to large corporations, small businesses create
diverse markets. Small firms are able to represent a specific product/service coupled with a
specific business process and atmosphere, allowing for a large variety of businesses offering
similar products/services each in their own unique way. In the long run, diversity generates
more competition and innovation. The aforementioned advantages are specific to small sized
firms, meaning that large firms either have difficulty coming by these benefits or these benefits
do not exist at all for them. (Cahoots, 2013)
Not only do firms benefit from growth, but the communities they are located in also see
positive outcomes. A community that has many growing small businesses, in both size and
profitability, gives off the impression that the community itself is thriving and doing well. As
stated by John Maguire, a community development director, “The visual impression of a
community is very important. With thriving small businesses, the impression can be one of
vitality and wealth. It can create positive vibes for the entire community.” (Morell, 2010, p.1)
Furthermore, small businesses that are experiencing growth are a prime source of job creation for
their community. As a growing firm, owners are usually looking for more employees to help
keep up with the increase in sales and production. These owners will turn to their local
communities in search of individuals searching for a job and whom are qualified for the position.
This creates a domino effect as explained by Peter Gill, a spokesperson for Illinois Retail
Merchants Association. “When you shop at small, local shops, you are putting money into the
pockets of local workers who may be your neighbors or even family members. That income will
likely be spent in town, making it a chain reaction.” (Morell, 2010, p.1)

8. Small businesses are usually created employing two different orientations;
entrepreneurial orientation (EO) or customer orientation (CO). Entrepreneurial oriented
businesses focus on innovation of products/services to lead them to expansion. Customer
oriented firms focus on the needs and wants of customers and fulfilling them, which would then
lead them to expansion. Firms utilizing EO usually witness “a period of positive growth
followed by a period of reversed growth and decline” (Eggers and Kraus, 2011, p.101). This
may be due to a lack of focus on customer preferences. Firms utilizing CO exhibit a short period
of growth followed by a plateau. This may be due to a lack of attention to financial resources
meant to support the fulfillment of customer needs and wants. Firms utilizing both EO and CO
equally are most likely to witness constant growth. These businesses focus on customer wants
and needs, then create innovative products/services to meet those needs all while ensuring the
financial resources are available to do so. (See appendix) (Eggers and Kraus, 2011)
When recessions hit it becomes a difficult time for all businesses; however, small
businesses can also see some positive effects. The hardest factor to deal with is usually the lack
of financial resources coming into the business. During a recession small businesses are
passionate on making sales. In order to get business they need to negotiate with customers
whom are also suffering. The experience they receive in negotiating not only helps them in the
short run, but also allows them to gain more business in the future when they are looking for
extra profits. During a recession, highly skilled workers are often laid off from large
corporations. These laborers are now easily accessible to the small businesses. A recession
becomes a great time for small firms to hire because these skilled workers are available, needing
work, and these small firms can afford them. Once small businesses come to the realization that

9. they can benefit from a recession, they will then be able to move forward, understanding that
growth is possible in their future. (Eggers and Kraus, 2011)

10. Chapter Two
Small and Medium Enterprises and Their Impact on Communities and the
Country as a Whole
Small and medium enterprises (SMEs) greatly impact their communities in many ways.
This section focuses on economic, social and environmental impacts. For the purposes of this
thesis, an SME will be defined using the USITC (2010, p.19) explanation; “…firms that employ
fewer than 500 employees.” In the United States in 2006 SMEs made up over 99.9% of the total
number of firms, with the majority having less than 20 employees (USITC, 2010; Theyel &
Hoffman, 2012; Daddi et al., 2010). This data implies that SMEs have extremely influential
effects and impacts on all facets of everyday living in the United States.
Among the 6.0 million non-farm firms in the U.S. in 2006, only 0.3%, or 18,000, firms
have more than 500 employees (USITC, 2010) (See appendix A title). Furthermore, in “2004
SMEs contributed about 50% of U.S. nonagricultural GDP,” specifically $4.7 trillion (USITC,
2010, p.2-2). SMEs represent a substantial portion of jobs created; as of 2011 there were 25
million to 27 million SMEs which represented 60%-80% of all jobs in the country (Bagley,
2012; Leebaert, 2008). This is extremely important because it basically exemplifies how crucial
SMEs are to the United States economy. Without them, job creation would drastically drop
causing the unemployment rate to sky rocket.
While some may believe this is a new trend in the U.S. economy it is not the case. Birch
(1979) provided the first evidence that proved SMEs were the primary driving factor of U.S. job
creation. Between 1969 and 1976 SMEs with fewer than twenty employees created 66% of all
net new jobs, and for those with 100 or fewer employees, the percentage jumped to 81.5%
(Birch, 1979; Neumark et al., 2011). About ten years later Birch found that the overall

11. percentage of SME job growth was 88.1% (Birch, 1987; Neumark et al., 2011). This early
evidence seems to have paved the way for SME job creation research and helped create
awareness of the strong connection we see today between SMEs and the U.S. economy. These
firms are vital to the U.S. economy through both monetary means and creating millions of job
opportunities for all.
SMEs are a great source of social advancement for local communities. Small businesses
make donations to local causes, sponsor local events, and hold employee programs to encourage
everyone in the firm to help out around town. A study completed in 2002 by MassMutual
Financial Group surveyed 1,143 family owned businesses and found that the average donation to
charity was $50,000 with a range of $250 to $3 million. The median number of employees in
these family businesses was 50 employees (Ciocirlan, 2008; MassMutual, 2002). These
donations go to great causes helping a range of recipients from humans, to animals, and even the
environment.
SMEs are also known for sponsoring local events and groups. Some of the most common
recipients are sports teams, schools, girl and boy scouts, road races, etc. Ciocirlan (2008, pg.91)
cited a study by Perrini (2006) that reported “75% of [SMEs] surveyed participate in sponsoring
local events.” With these percentages illustrate SMEs impact in helping to support local
programs.
SMEs often offer opportunities for their employees allowing them to participate in
programs that benefit the local community. Some of these programs include employing older or
disabled individuals to give them an equal opportunity, offering employees set amounts of time
weekly to go off and volunteer within the community, and holding projects to rebuild homes,

12. schools, parks, etc. around their area (Ciocirlan, 2008). Perrini (2006) found that 83% of the
businesses surveyed offered these programs (Ciocirlan, 2008).
Unlike economic and community service impacts, SME are not leaders in positive
environmental actions. Numerous studies have shown that SMEs lack awareness and/or
resources in relation to environmental issues (Daddi et al., 2010; Theyel & Hoffman, 2012;
Gadenne et al., 2008). Often these firms are simply unaware of their environmental impact.
Many, because of their size, do not believe they make any effect on the environment (Daddi et
al., 2010; Gadenne et al., 2008). Furthermore many business owners/managers are unaware of
the environmental legislation and standards they are subjected to (Daddi et al., 2010; Theyel &
Hoffman, 2012; Gadenne et al., 2008). The lack of knowledge concerning government
standards/legislation explains why so few SMEs perform environmental practices (Gadenne,
2008). One of the reasons as to why the owners and managers are unaware of the legislation
could be that they simply work so many hours focusing on finances and such that they cannot
find the time to focus on their environmental impact (Gadenne, 2008).
In some cases awareness may not be the issue. Some owners and managers may be
completely aware of their firm’s impact but just do not have the financial resources to make a
change (Gadenne et al., 2008). For example, for an SME to cut back on electricity costs and use
they may want to purchase solar panels. However, the costs of installation and maintenance of
the solar panels may be unrealistic and unattainable, forcing them to give up on the idea until
possibly a later time (Daddi et al., 2010). What they may not know is that often the government
offers state-based incentives for solar installations as well as other environmental options. This
in itself creates another awareness and knowledge gap. For firms in this situation it becomes
evident that there are good intentions, but the owners do not know the options they have

13. available to them. Specifically in the State of Connecticut a company called Energize CT has a
wealth of information about programs and incentives regarding energy efficiency that are offered
to business owners and homeowners. The company’s webpage includes a detailed list of all
incentives and programs offered, who is eligible, and how they can go about applying
(EnergizeCT). The company makes it simple and stress-free for Connecticut business owners to
research and utilize the programs they are eligible for. Resources such as Energize CT can be
extremely helpful to business owners who want to save money and be efficient in the long run,
yet do not think they can afford to in the short run. Without the knowledge of resources
available, firms give up on the notion that they can be energy efficient and save money.
This gap between wanting to be an environmentally friendly firm and actually being so
needs to be bridged. There are a couple of known ways to close this gap; almost all of which
include the help of other people who are an integral part of the firms. Stakeholders have a major
part in making environmental practices feasible. To define what exactly a stakeholder is Theyel
& Hoffman’s (2012) reference to Harrison et al. (2010, p.60) is used stating, “…groups and
individuals who can affect, or are affected by, the strategic outcomes of a firm.” Some examples
of a stakeholder include investors and bankers, public suppliers, owners, the government,
customers, and employees. Stakeholders are a crucial asset to have that can help an SME attain
the resources necessary to become environmentally friendly. When SMEs have close ties and
healthy relationships with their stakeholders they are able to communicate with them about their
needs.
Investors and bankers are especially important because they want to see the SME thrive.
Therefore, they are more willing to give the owner/manager the financial, technological, and/or

14. physical resources necessary to meet their needs. Investors usually have a good set of
contacts/network that often times help fund projects to aid the firms (Theyel & Hoffman, 2012).
While bankers are primarily for financial resources, they can also offer advice on successful
ways to manage money, what type of loans to apply for, and how to use the loans to their
greatest advantage.
If public suppliers for these SMEs have been producing products in an environmentally
friendly way then SMEs can market their goods and services with the message that their goods
only come from suppliers who stand for green practices (Gadenne et al., 2008). Further, SMEs
can ask their suppliers for their knowledge, technology, and other resources to help them become
more environmentally friendly (Theyel & Hoffman, 2012).
The employees and owners of the SME can also work towards environmental practices at
very small costs. Some simple ways they can do this include reducing waste, recycling
materials, minimizing the use of certain materials, and cutting down on unnecessary packaging
(Gadenne et al., 2008). Furthermore, these firms can hold events such as bottle drives, battery
collections, etc. By doing so they are helping the entire community while also creating their own
environmental practices/awareness (Gadenne et al., 2008).
An additional way to bridge the gap between wanting to be environmentally friendly and
actually doing so may need to start with the government. Instead of just creating legislation,
which is often times difficult to abide by, the government needs to add incentives. Whether it be
cuts on costs, providing aid, or offering ways to gain knowledge on the legislation and how to act
upon it, incentives may make it all around easier and actually attainable (Daddi et al., 2010).
Currently, the government offers state-based incentives that have helped firms who have taken
the time to research what they offer. The Tax Incentives Assistance Project is a country wide

15. coalition of non-profit groups and government agencies that give business owners the
information needed to take part in energy efficiency and advise them on how to make use of tax
incentives (EnergyTaxIncentives). Specifically, in the state of Connecticut there are many
resources available through the company Energize CT. Two of their most popular are the Office
of Energy Efficient Businesses (OEEB) and Green Buildings Tax Credit. The OEEB offers
services that send out professionals who analyze a firm’s energy use and recommends ways to
become more efficient and save money. The Green Buildings Tax Credit is a tax incentive for
commercial building owners and developers who meet or exceed a certain standard set by the US
Green Building Council regarding clean energy. (EnergizeCT) These resources are always
available, however; business owners need to take the time to do the research necessary to learn
about the incentives and apply for those which they are eligible.
There are a multitude of internal benefits that come with being an environmentally
friendly firm. When customers see that a firm is green they are most likely going to notice and
want to do further business with them, as well as share their opinions with others (Gadenne et al.,
2008). This will then result in more customers, ultimately boosting profits (Gadenne et al., 2008;
Theyel & Hoffman, 2012). Also, employees will be happy to work for a green business
improving their commitment to the firm and overall moral. Being green will also improve their
products and give the firm a competitive advantage (Gadenne et al., 2008).

16. Chapter Three
Corporate Social Responsibility
Corporate social responsibility is often used to promote growth and success in a small
business or a corporation. These firms do so not only because they feel it may carry with it
increased profits and customer support, but also because they want to improve the lives of those
both in their community and nationwide. This thesis uses Besser’s (1999) definition of corporate
social responsibility (CSR): “the contribution that businesses make to the public good above and
beyond the provision of goods and services that they exchange in the market. (p.16)” Exhibiting
corporate social responsibility is an exceedingly important responsibility for firms which want to
make their community, state, country, and/or world a better place.
It is a common belief that if a business displays strong social responsibility, the
community will be more likely to support it. When a business strives to help its community it
creates a positive public image for themselves. Furthermore, this positive image makes potential
customers transform into actual customers. When individuals in the community realize what a
certain business is doing to improve their life, they are much more willing to support the
business and what it stands for. (Besser, 1999) When businesses give back to their communities
they make it stronger; economically and socially. However, this is not the only driving factor.
Not all business owners exhibit social responsibility in order to gain increased profits and
customer support. Put perfectly by a construction contractor, “Businesses have an obligation to
society, but it’s not codified. It’s in their self-interest to contribute. It helps business if the
community is strong,” (Besser and Miller, 2004, p.404). This statement directly relates to the
enlightened self-interest model of corporate social responsibility. The enlightened self-interest
model suggests that businesses greatly benefit from displaying and practicing social

17. responsibility. Some benefits consist of having a happy, intelligent, well-trained employee base;
a safe work environment; and a “thriving community in which to do business” (Besser, 1999). It
is necessary to look further and understand that all of these factors in a larger form completely
benefit the community, and its citizens as a whole.
Corporate social responsibility practices come in many shapes and sizes. Some help
benefit one’s local community, others their county, sometimes the entire state. In larger scale
practices, it is even possible to benefit the entire country or another country across the world. It
is common to see local businesses in small towns sponsoring children’s sports teams, giving
away scholarships for graduating high school seniors, or even holding events where a certain
amount of the day’s profits go towards a specific cause important to the townspeople.
Specifically, Besser (1999) surveyed 1,008 small business owners and managers, in randomly
selected small Iowa cities and towns with populations ranging from 500-10,000, about the
amount of socially responsible behavior they exhibit. A small example of some of the questions
asked involving business support include, “How often has your business assisted the local
community by supporting local youth programs?” and “How often has your business assisted the
local community by financial donation to local schools?” Another sample of questions asked
regarding commitment to the community included, “Whenever possible, I purchase business
supplies locally even when the cost more?” and “As a business owner/manager I am willing to
expend resources to help the community.” The results go on to show that the average support the
businesses give to local youth programs and financial donations to schools was considered
“sometimes”. As for commitment to the community, the participants agree that they are willing
to expend resources to help the community as well as purchase supplies locally regardless of
cost. (Besser, 1999) This study provides examples of how small businesses attempt to improve

18. their communities by supporting other local businesses, making youth sports and other programs
of the like more easily accessible and doable.
More locally and recently The Hartford insurance company commissioned a study on
small businesses and social responsibility, The Hartford’s 2014 Small Business Success Study.
This study used telephone survey reaching 403 small business owners in Connecticut; and 2,024
nationally. All of the companies, which were for-profit, had fewer than 100 full-time employees
and had been in business for at least one year. The survey report compared Connecticut’s
businesses and the national average. (The Hartford, 2014) The survey explored how these small
businesses help their communities in which they do business. Five questions asked during the
survey included “Do you hire locally?”, “Do you donate products and services?”, “Do you
sponsor community activities?”, “Do you volunteer time regularly for community improvement
projects?” and “Do you encourage employees to volunteer their time in local community
activities?” (The Hartford, 2014) For every question asked, Connecticut exceeded the
percentage at which business owners said “yes” versus those who said “yes” in the national
businesses. (The Hartford, 2014) When analyzed all of these questions relate directly to
enhancing the community, unifying the citizens, and ensuring success. Hiring locally helps to
increase the town/city’s employment rate and make sure that the citizens are making the money
they need to survive. Donating products and services helps those in need that do not have the
means to acquire those items or services. Sponsoring community activities helps bring citizens
together for a cause or simply a fun and enjoyable event. This alone improves the community
and makes it a more pleasurable and gratifying place to live. Volunteering time for community
improvement projects as well as having your employees do the same benefits the community by
making it again a better place to live. Having a great environment to make your home ultimately

19. leads to the citizens sharing what makes that town/city a great place to live in and why. When
people start talking up their town/city they encourage others to live there, which in turn brings up
the population, makes more money flow into the town which would then go back to the people
and businesses in many different ways. It is a cyclical factor, the more a business does for its
community members and the town itself, the more successful the town, its citizens, and that
business becomes, which just comes back around to improve the community in its entirety. This
element then brings into play how the size and ownership of these businesses affects the
community.
It is much more common for the customer to know and interact directly with the owners
of small businesses. In larger businesses and corporations this is much less common. In larger
firms there are many departments with numerous individuals in authoritative roles making it
difficult for the customer to come in any contact with the owner. For example, if there is a
problem with a product or service, the customer usually is directed to customer service in large
businesses and corporations. When a customer encounters a problem with a product or service in
relation to small businesses they are usually put directly in contact with the owner who then
personally helps them with the matter. Perfectly summed up by Blombäck and Wigren (2009)
“In the large firm, corporate social responsibility activities are often the responsibility of certain
departments, like accounting or marketing. Small and medium enterprises often lack
departments for accounting and marketing, implying that corporate social responsibility activities
are more likely embedded in the firm’s everyday life.” (p.261) Another example related directly
to corporate social responsibility is when a business owner donates a product or service or
sponsors a community event. For instances such as these in small businesses where there most
likely are not departments and groups of people who handle donations and sponsorships, the

20. owner themselves organize and perform the tasks involved, working directly with those who are
receiving the donation or sponsorship. When this happens the receiver gets to know the owner
and is truly thankful for what they are doing. People that can see and interact with these owners
are much more likely to purchase from them in the future over companies and owners whom do
not personally interact with their customers. Besser (1999) covers this idea when summarizing a
study performed by Brown and King (1982), “The researchers concluded that individuals who
operate their own business are significantly influenced by the communities in which their firms
are located. These research findings lead to the expectation that socially responsible behavior of
businesses operating in small towns will be more generally known by residents and then
rewarded or sanctioned by local residents…” (p.17) It is quite clear that size makes a big
difference on owners’ performance of socially responsible activities, as well as the impression
customers have of those businesses. Just because these large businesses and corporations have a
larger disposable income can often lead to the assumption that they are expected to be socially
responsible. Small businesses do not have as much of this disposable money and therefore when
they perform socially responsible acts are seen in a greater light. However, this does not go on to
say that small businesses have an overall larger impact on communities than do larger businesses
and corporations.
Just because a specific business or corporation is very large does not mean that it does not
make an important impact. As previously stated, it is possible to benefit the entire country or
another country across the world. A prime model for this is the company called TOMS owned
by Blake Mycoskie. TOMS was created in 2006 as a company that sold shoes with a major
cause behind it. For every pair of TOMS sold, one pair was given to a child in need in
Argentina, one for one. At first the company was ran by Mycoskie and a couple of interns out of

21. a Venice apartment bedroom. After one year the company grew into a multimillion dollar
business selling shoes all over the world, with the same crucial mission, giving children in
Argentina shoes that they so desperately needed. Eight years later TOMS has grown its product
line and now sells shoes, coffee, books, eyewear and more. Each of these products carries the
same promise of one for one but now they help people all over the world, not solely Argentina.
For every bag of coffee sold one family in a developing nation is given clean water for a week.
As for the eyewear, every pair of glasses sold, one person receives restored vision. When a book
is sold, a new book is given to a child in need. And as for the shoes, every pair sold still leads to
another individual getting their own free pair. Every single product sold by TOMS leads to an
individual receiving something they need free of any cost. (Mycoskie, 2012) It is this type of
mission that makes large businesses and corporations stand out. They may not help that small 8-
9 year old soccer team in Buffalo, New York get uniforms, but they are helping thousands of
people all over the world.
Large businesses, such as TOMS, do make a difference in the world, it is simply on a
different scale than small town businesses. It cannot be said which holds more value, it is purely
how one decides to look at it and evaluate it for themselves.

22. Chapter Four
Case Study: East Hampton, Connecticut
East Hampton, Connecticut is a small town located 22 miles south of the capital,
Hartford, and is just east of the Connecticut River (easthamptonct, 2015). Dubbed “Belltown,
USA”, East Hampton was incorporated in 1767 and was put on the map for its bell
manufacturing by the Bevin Brothers Manufacturing Company (their bells were even featured in
“What a Wonderful Life”). Today, East Hampton is a small rural town with a large lake in the
center and many farms and forests surrounding the outskirts. The town is bordered on the west,
north, and south by state forests which boast dozens of hiking trails (easthamptonct, 2015).
There are many locations throughout the town that have become symbols for East Hampton.
Some include; Bevin Bells, Lake Pocotopaug, the Comstock Bridge, the Airline Trail, and the
Salmon River. It is a place where everyone knows everyone.
East Hampton covers 36 square miles with the lake taking up 512 acres (easthamptonct,
2015). Its population in 2012 was 12,953 and the median age was 41. The town is not very
racially diverse with 94% of the population being Caucasian. As for its economy, East
Hampton’s total revenue for 2012 was $41,214,379. The median household income for the same
year was $93,083 and the poverty rate was 4.1%. The factor that will be most important for the
purpose of this study is the levels of business in East Hampton. The town contains 222
businesses, which is a slightly higher amount compared to its bordering towns. There were
1,887 individuals employed in East Hampton as of 2013 but only 712 of these individuals were
residents of the town. One of the major employers was the large grocery chain, Super Stop and
Shop. All of these statistics come into play when evaluating the businesses that are prevalent in

23. the town of East Hampton (both local and chain) and how they affect the community;
economically, and socially. (CERC, 2014)
The reason for utilizing the town of East Hampton relates to its small size, mix of both
small local businesses and large Northern East Coast chains, and closeness of the individuals of
the community. All of these factors affect citizens’ shopping behaviors, meaning where they
choose to shop and why. Because East Hampton is a small town there are limited options and
availability of certain products and their substitutes. The mix of similar businesses that are either
large chains or locally run lead to one’s decision on which to purchase from and why; is it to
support local businesses or is it because of the convenience of the chains? Because the
community is close knit, the shopping behaviors of one may affect the behaviors of another.
This can happen by one individual talking up a business and the other having never been, but
will now plan to because of the great things they heard. The opposite can happen when an
individual talks down a business. While there are many other influential behaviors, overall they
affect where people shop and why. This is one aspect this study is trying to further understand.
This case study tries to understand how business owners feel their firms give to the
community as well as how its customer’s view its presence in the community and why they
choose to shop at these businesses. Ten businesses were approached for an interview with only
five responding. The study contains two parts; a short five question interview/questionnaire for
the owners/managers of five businesses in East Hampton, and a short survey for twenty
randomly chosen residents of East Hampton regarding the levels of product/service quality,
customer service, community giving, and ownership of the businesses as well as why they
choose to shop there and how they feel the firms give back to the community. A sample of both

24. the owner/manager questionnaire and the customer survey are available to view in the Appendix
(FIGURES).
The following sections of this study will go into further detail about each business
interviewed; giving a short description of the firm, owner/manager input on their community
giving, and why customers choose to shop there as well as how they view the firm’s level of
community giving.
Old Bank Flowers and Greenery (Lori Caldwell, 2015)
Old Bank Flowers and Greenery is a small shop that opened in January of 2013 in the
historic village center in what used to be the old town bank. They offer not only flowers,
arrangements, and corsages/boutonnieres; but also knick knacks, candles, furniture, soaps, art,
jewelry, and much more. It is a beautiful shop with everything perfectly placed to show off each
item’s uniqueness. The store offers not only its own products but also those of many local
vendors. The shop is advertised in a magazine called “Ink”, as well as in the local newspaper,
Facebook, and their personal website.
Old Bank Flowers and Greenery is owned by a friendly, outgoing, and personable woman
named Lori Caldwell. She describes herself as a “people-pleaser, picky, and family oriented,”
which can be seen as her son comes in the shop after his day at school.
When discussing how her business gives back to the community she spoke highly of her
“All Arts Night”. Every first Friday of each month the event is held and artists of all kinds are
brought into showcase their pieces. Some include photographs, paintings, drawings, and
sculptures. However, visual arts are not the only ones present. Old Bank Flowers and Greenery
also has an open mic event with local musicians. In these ways the business helps support the

25. locals whom many of which “make a living off of their art.” The store also has over sixty
vendors who sell their handmade products, giving them an outlet to make money and share their
creations with the community. Recently, Old Bank Flowers and Greenery donated floral
arrangements to the local high school’s Annual Prom Fashion Show, to help dress up the stage.
While the shop does numerous acts for the community only five of the twenty residents
surveyed had shopped there and acknowledged their actions. While this number is low, it does
not come as too much of a surprise. Lori had stated during the interview that “they do need more
local support” and that many people thought she was just a florist. Furthermore only 60% of
those who shop at the store were moderately satisfied with the amount of community giving.
After analyzing the comments of those customers it became clear that they did not know how the
business’s vendor support benefits the vendors. Furthermore, only two of the five customers
mentioned the “All Arts Night.”
As for the customers who have never shopped at Old Bank Flowers and Greenery, when
asked why they often commented on the fact that they do not purchase flower arrangements or
have a need for a florist. After mentioning to them that there is more to the store than just
flowers, they had no idea and had never been on the website or Facebook page. They also
mentioned that the name gives off the impression that it is only a florist. Lori had mentioned
during the interview the need for larger signage on the side of the building as well as including
“local vendors” on it. This may make a drastic change for the business in bringing in more
customers who previously thought the shop to only be a florist.

26. Abbeez Premium Frozen Yogurt Bar (John Tuttle, 2015)
Abbeez Premium Frozen Yogurt Bar opened its doors in March of 2013 and is located in
a small shopping center in the business district of East Hampton. They offer not only frozen
yogurt with sixty different toppings, but also soft serve ice cream, soup, and Sabrett Hot Dogs.
The shop has a completely unique design that is vibrant pink and green. Abbeez is advertised
through a-frame signs on the streets, loyalty cards, Facebook and Twitter.
Abbeez Premium Frozen Yogurt Bar is owned by a man named John Tuttle who came up
with the idea after taking his daughter, Abbey, to a frozen yogurt shop 25 miles away numerous
times. He wanted to keep kids in town and avoid them driving back and forth down an accident
prone highway or through a deadly stretch of Route 66 called “The Ledges”. John is also a
respectable owner. He had wanted to sell ice cream in the shop but had decided not to because it
may take business away from another local business that sold ice cream. Unfortunately, that
business recently shut down and only then did John actually bring in ice cream, not only to offer
another product but to also keep people buying in town versus going to the Dairy Queen the next
town over.
When discussing how Abbeez gives back to the community, John went straight to the
subject of jobs. Abbeez hires “13 individuals, 12 of which are high school students.” Giving
these high schoolers jobs that are close to home help them save as much money as possible
especially for those interested in attending college. In addition to jobs, Abbeez sponsors the
local little league, and donates to the local schools (See Appendix Figure). They also donate gift
cards to local causes. While other towns do ask for gift card donations, John strives to keep
everything exclusively local. Recently, they held a yogurt tour for a local Daisy troop (girl
scouts) and taught them different aspects of the business.

27. When analyzing the customer surveys it is clear how popular Abbeez is in the
community. Ninety percent or eighteen of the twenty residents surveyed frequent Abbeez.
Furthermore, 50% rated the customer service as excellent with the other 50% rating it as good,
and 40% being highly satisfied with their community giving and the other 60% being satisfied.
It became clear that Abbeez actions to support the community are well known by their
customers. Some of the examples the customers gave included sponsoring little league, holding
fundraisers for the schools’ Parent Teachers Organizations, donating money to East Hampton
High School Sports Boosters, and supporting walk-a-thons such as Benny’s Walk (a charity walk
in East Hampton). A number of individuals mentioned a specific reason for why they do
business with Abbeez is specifically because of all they do to support their community and that
they would rather give them business than any other chain frozen yogurt shop.
Rossini’s Italian Restaurant (Angelo Simoni, 2015)
Rossini’s Italian Restaurant is an extremely well known restaurant in East Hampton. It is
a “small, family-run business that has been in business for the past 30 years.” Rossini’s offers
many Italian options for lunch and dinner but are especially known for their pizza. The business
strives for putting out quality products and great customer service. They also feel as though
because of their success in the town and their support from customers over the years, they have
become a true part of the community. To keep their customers coming back they do their best to
connect with them in person as well as through social media to ensure their happiness and that
they have had and continue to have positive experiences. They are extremely family oriented
and try to make both their staff and customers feel like they are a part of the family. They even
invite their staff to family gatherings and events. This was supported by a waitress who worked
at Rossini’s when they first opened and current resident of East Hampton, Laura Allegretti who

28. stated, “Every Sunday during a slow hour the entire family would sit down and have a family
dinner and included all of us who were not part of the family. They made you feel like you were
one of them and made sure you joined them.” Rossini’s “strives to run a business where people
actually like coming to work to serve our customers.”
Angelo explained Rossini’s community support with a number of examples. The
business donates to local schools, both monetarily, with food, and other types of offerings. They
also donate gift cards to local causes and special events. Rossini’s has sponsored local sports of
all types in the town. These donations have made a large impact on the citizens of East Hampton
and were explained in the customer surveys.
When analyzing the customer surveys it was clear to see the support the community gives
to Rossini’s with 90% or 18 out of 20 customers regularly buying from Rossini’s. Sixty-seven
percent of those customers rated the customer service as excellent with the other 33% rating it as
good. Seventy-two percent of the customers felt the business was extremely well run, which
makes sense seeing as they have been in business for 30 years. Lastly, 55% of the customers
were highly satisfied with Rossini’s community giving, the remaining 45% being satisfied. As
for examples of how they give back, some of those surveyed stated Rossini’s donates to raffles
for special events in the community as well as donating food to school functions as well as
memorials for some of those who have passed. One customer gave a brief account of Rossini’s
personally contributing to their family when her husband had fallen. While the details about the
situation are not clear it is still necessary to mention this individual who personally witnessed a
contribution made by Rossini’s.

29. Paul’s and Sandy’s Too (Jill Kelley, 2015)
While time constraints made it difficult to directly interview with Paul’s and Sandy’s Too
there was no less of a wealth of information on the business’s contributions to their community.
Quite possibly the most influential business in East Hampton, Paul’s and Sandy’s Too is a family
owned and operated garden and hardware store that opened its doors in 1970. It was originally
owned by a married couple, Paul and Sandy Peszynski who created what the store has become
today. Now the store is run by the second generation, Paul’s and Sandy’s children. The store
sells flowers and other plants, animal feed, fruits and vegetables, mulch, stone, soil, hardware,
and much more. The store advertises through word of mouth, parades, local newspapers, flyers,
personal websites, Facebook, billboards, as well as having a section of the Connecticut Building
at the Big E in Springfield, MA.
Paul’s and Sandy’s Too does countless things for the community of East Hampton. After
briefly talking with Jill Kelley, a daughter of Paul and Sandy as well as manager of the business,
it became quite clear how much they truly do. One of the specific actions Jill mentioned was
beautifying the town. One can see the beautiful planters in front of all the local schools as well
as in front of numerous storefronts and other public areas in the town. All of these planters are
donated to the town and upkeep is provided by Paul’s and Sandy’s. An additional action Jill
mentioned was how the store lends churches, schools, and other local causes goods needed.
Some examples included lending hay bales to put in front of churches in the fall season to keep it
looking nice, lending poinsettias to the annual Breakfast with Santa event at the high school. Jill
made a point that while the store is extremely busy year round and it is difficult to lend her time,
she is always willing to lend supplies to help support events and make them possible. For
example, because of the busy schedule at the store it was difficult to donate her time with the

30. Parent Teacher Organization she was a part of, she was always willing to donate what they
needed; for example, stakes for signs to be put outside the school to advertise for upcoming
events. Paul’s and Sandy’s also sponsors numerous sports around town including youth football
and little league. These are not their only contributions.
Perhaps the most influential contribution Paul’s and Sandy’s makes to the community,
both of East Hampton and the State of Connecticut, is the Sandra Peszynski Breast Cancer
Foundation Inc. The foundation was started in 2009, just two years after Sandy, co-owner of
Paul’s and Sandy’s Too, passed away after a 25 year battle with Breast Cancer. The foundation
“strives to keep funds local,” by donating all the funds raised equally to two cancer centers; The
Middlesex Cancer Center located in Middletown, Connecticut, and the Hartford Hospital’s
Partnership for Breast Cancer located in Hartford, Connecticut (spbcf, 2015). These two
organizations were chosen specifically because of the personal care and help that Sandy and her
family received from them. The Sandy Peszynski Breast Cancer Foundation website states,
“There are no administrative costs taken out of the funds raised. 100% of the funds collected get
donated…LOCALLY.” Collectively, since the foundation began in 2009, the amount of money
raised and donated to these two organizations has amounted to $290,000 (spbcf, 2015). These
“donations make it possible to offer no-cost screening mammograms for uninsured women and
helps to provide special amenities for mastectomy patients” (RxTra, 2013). These funds are
raised through many means with the most significant being Pumpkintown. Pumpkintown is a
fall festival of sorts where Paul’s and Sandy’s sets up a Pumpkintown on their property. It is an
interactive festival where children and families are able to meet the Pumpkin People (see
appendix figure) as well as play in moon bounces, mazes, and a not-so-scary haunted house.
This event brings possibly 25,000 visitors every fall and began in the early 1990s (Pumpkintown,

31. 2015) with 100% of the admission costs and donations gathered going to the Sandy Peszynski
Breast Cancer Foundation. At the end of the season there is also a Pumpkintown Prom held at a
local restaurant that has been known to bring in $22,000 through admission costs, raffles, and
donations (Pumpkintown, 2015). However, Pumpkintown is not the only means of raising
money for the foundation. Online donations are accepted as well as an online fundraiser through
Rada Cutlery which gives 40% of sales to the foundation. There is also a community cookbook
that is for sale at the store as well as farm fresh eggs from a town resident who donates all the
proceeds to the foundation. On top of all of this the foundation also honors woman from East
Hampton or a surrounding town who has lost their battle with Breast Cancer. (spbcf, 2015)
The residents of East Hampton are well aware and proud of the contributions made to
their community by Paul’s and Sandy’s Too. After analyzing the customer surveys, 90% of
those surveyed or 18 out of 20 said they shop at the store regularly. Of these individuals,
fourteen said they were highly satisfied with the business’s community giving and the remaining
four rated themselves as satisfied. All of the eighteen individuals gave examples as to how they
business gives back to the community and all mentioned the breast cancer foundation. Some of
the other examples included sponsoring sports teams and donating goods such as pumpkins to
schools. A few individuals mentioned specific contributions Paul’s and Sandy’s made that
personally helped their families. Three people spoke about Paul’s and Sandy’s Too donating a
tree for a memorial for a mother of a boy on the high school soccer team who had passed away
due to cancer. Another person mentioned Paul’s and Sandy’s offering to supply woodchips to a
non-profit dog rescue, located in East Hampton, at a deeply discounted price. Overall, all of
these contributions have been well observed by the community. The citizens are truly grateful

32. for what the business has done for the town and many wrote that their support is the specific
reason as to why they choose to shop at Paul’s and Sandy’s Too.
McDonalds (Kyle Tuchay, 2015)
McDonalds is located in the business district of East Hampton. It is managed by Kyle
Tuchay who takes pride in running the business in the small town where he knows a large
amount of his customers personally. Kyle explains one of the East Hampton business’s strengths
as being incredibly friendly. During the interview Kyle stated, “Personally, I would like to have
a more friendly experience than a fast paced one where you feel like the employees are rushing
you through the line.” It is true that this is the case for many other McDonalds locations where
customers are rushed through the door with a generic greeting “What can I get for you?”
However, at the East Hampton location, many of the workers know the customers and ask them,
“How are things going?” “Did you win the game yesterday?” and “How is your son doing at
college?” This friendliness and sense of community is what Kyle’s store strives for.
When discussing how his location gives back to the East Hampton community Kyle
described a program allowing community organizations to rent their cooler. They also donate
cups and drink mixes to the organizations when needed. Kyle mentioned they donate to
fundraisers in the town as well. He went on to state, “Giving back to the community and being
responsible neighbors is a main priority and always will be.”
After analyzing the customer surveys 60% or 12 of the 20 surveyed purchase from
McDonalds. While ratings for customer service and quality of product/service were majority
rated as average, 42% of the 12 customers were highly satisfied with their community giving and
the remaining 58% being satisfied. This shows the customers do recognize what this specific

33. location is doing for their community. The same individual who reported Rossini’s helping out
her family when her husband fell also named McDonalds as one of the other businesses that had
stepped up to help. Another individual mentioned McDonalds’ support for Project Graduation,
an all-night-long after graduation celebration put on for graduates of East Hampton High. They
had stated that not only did they have donation boxes for customers to contribute but that
McDonalds also donates a portion of their sales to help support the event.
Stop and Shop (stopandshop, 2015)
While Stop and Shop chose not to be interviewed it is still necessary to cover it in this
study due to it being a major business and employer in East Hampton. Stop and Shop is located
in the business district of East Hampton and is a large northern East Coast grocery chain.
Stop and Shop’s East Hampton website offers links to applications for requesting local
donations. One specific link leads people and organizations to a page where they can request a
monetary donation by filling out an application six to eight weeks prior to the need of a decision.
There is also a link to their program Cash for Causes. This program allows organizations to
purchase gift cards at a discount of 5% with that 5% being the amount of money kept and put
towards the organization’s cause. There is a restriction, the organization must purchase a
minimum of $500 in gift cards. The final link on the website leads to a page for the A+ School
Rewards program. This program allows customers to register their loyalty cards with their local
schools. By doing this, every purchase made with a loyalty card earns money for the local
schools. This money can be used for anything; field trips, technology, supplies, scholarships,
playgrounds, etc. This program may be the most influential source of giving made by Stop and
Shop in East Hampton.

34. When analyzing the customer surveys 19 out of 20 individuals surveyed, or 95%, shop at
Stop and Shop and only 32% were satisfied with their community giving; none of those surveyed
were highly satisfied. Of the 19 individuals who shop at Stop and Shop five of them mentioned
the A+ School Rewards program. No one mentioned any of the other programs offered by Stop
and Shop. This may be because they do not know these programs exist, fore they are not
advertised regularly in the store.
Overall, all of these businesses have an impact on the community by helping with school
programs, special events, walk-a-thons, charities, beautifying projects, donations and through
many other means. A major question on the customer survey was “Why do you choose to shop
at these businesses?” The answers received ranged from convenience, to because my family and
friends shop there, to the want to support local businesses. However, some specific answers
gave an in depth reason as to why they choose these businesses and why it is important to shop
local. “They hire local people and pay taxes. They also offer goods and services with a personal
‘small-town’ feel.” Another individual was on the same track but went a little further, “These
businesses pay taxes to the town which helps to reduce overall taxes. They also provide part
time and full time jobs for residents of the town.” Lastly, another individual gave their reasoning
for buying local, “We need to build up our community and support our local businesses, whether
they are chains or locally owned. I want to help support those who have spent a majority of their
lives working hard to be successful business owners and who have provided us with quality
products and services.” These three customer responses speak volumes and show how strong of
an impact these local businesses have on their community as well as the support they receive
from their community. The close-knit community of East Hampton, Connecticut is a place

35. where businesses thrive because of their customers and their customers thrive because of the
support these businesses give them.

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