I've found that it is typical for people who run these small types of businesses also live in the neighborhood, or close by.
Another improvement is that people who both live and work in the community have time for more community engagement, but it their children's schools, local government, or local volunteer efforts.
The first chapter of The Death and Life of Great American Cities touches on this topic a lot. Community safety is enhanced by mixed use, because there are reasons for people to naturally be there at all hours of the day/night. This contrasts with single use areas, which are essentially ghost towns in their off-hours.
When people spend money at a locally-owned business, that money at least has a chance of staying in the community. When people spend money at a big national or multi-national chain store, a lot of that money is leaving the community, and never returns.
Another improvement is that people who both live and work in the community have time for more community engagement, but it their children's schools, local government, or local volunteer efforts.
Local businesses improve the community.