It is very important to shop in your local community for many reasons. All business is – frankly – big business. The Small Business Administration identified that there are more than 28.2 million businesses in the United States as of March 2014, of which 63% of new jobs are being created from small businesses between 1993 and mid 2013. Out of these 28.2 million businesses, most are “self-employed” and that makes up about 3/4 of the U.S.’s total businesses. Meanwhile, approximately half of small businesses survive five years or more, many of which make up your local LOCM +% coffee shops, fashion boutiques, preferred chiropractor or local pet shop. The Small Business Administration also states that the 28 million small businesses in America account for 54 percent of all sales in the U.S. Also small businesses have provided 55 percent of all jobs and 66 percent of all new jobs since the 1970s. When you make a purchase at a small business, you are doing your part to stimulate the local economy in which you live in, which in turn is benefiting you indirectly.
Several studies have shown that when you buy from a locally owned business instead of a nationally owned businesses or corporations, significantly more of your own money is being used to make purchases from other local businesses and as mentioned before, the more local business thrives, the more you thrive off these benefits. What does this mean exactly? It means that your money is being put to good use instead of being used to build corporations empires larger and larger. When you shop local you are continuing to strengthen the economic base of your community. According to The Multiplier Effect of Local Independent Business Ownership, each dollar you spend at independent businesses returns 3 times more money to your local economy than one spent at a chain store (almost 50 times more than buying from an online mega-retailer)- this is something we can all feel good about if we shop locally.
Fiscal Impact Analysis states that all local businesses also generate more tax revenue per sales dollar. This being said, a greater percentage of local independent businesses keeps your taxes lower. Who doesn’t want lower taxes? Also, sales taxes fund our communities and provide very important services such as police and fire protection, town repairs and trash collection and damage control. It is important to keep sales close to home, to help your community in more ways than you think. “Local businesses are more likely to shop with other local businesses, keeping money moving in our local economy even longer,” explains Morgan Harris, owner of Green Bambino (www.green-bambino.com), the largest cloth diaper retailer in the state.
According to Civic Economics – Andersonville Study of Retail Economic when you shop local you are not just benefiting your community, but you are helping yourself. When you shop at locally owned businesses they pick the items and products they sell based on what they know you like. In other words, local businesses carry a wider array of unique products because they buy for their own individual markets and you will be able to purchase products that are unique, one of a kind and hand selected. You are also investing your money in entrepreneurship when you shop local. Creativity and entrepreneurship are what the American economy is founded upon, it is a special trait and when you support local business it will help ensures a strong community.
Statistics from epa.gov show that local shops produce a net anual return of $326 per one-thousand square feet. On the other hand, big box stores create an annual deficit of $468 per one-thousand square feet. this being said, it is evident that not only is shopping locally better for your community, but it is better for the entire world. Small local businesses are less susceptible to national downturns, therefore they are more likely to work really hard to stay open. “Local ownership means that important decisions are made by people who live in our community and feel the impact of those decisions,” explains Chris Branson, co-founder of Keep It Local OK.
Next time you go shopping think twice about where your money is going. You have the power to negatively or positively affect the world we live in. Buying local is worth every cent. According to www.civiceconomics.com for every $100 spent at a locally-owned business, $73 remains in the local economy, and $27 leaves. Compare that to the same $100 spent at a non-locally owned business, where $43 remains in the local economy and $57 leaves. “When profits stay local, it increases the community’s wealth, tax revenue and standard of living,” Sue Lynn Sasser, PhD and professor of economics at the University of Central Oklahoma says. All you have to do is shop locally and you will be surprised to see how much your community grows and prospers.
Content Source: http://www.amiba.net/resources/localhero/
“The Multiplier Effect of Local Independent Business Ownership” provides an overview of the topic. The consulting firm Civic Economics has executed multiplier studies for many communities
“Neighborhood stores: An overlooked strategy for fighting global warming” by Stacy Mitchell, Grist.
Fiscal Impact Analysis of Residential and Nonresidential Land Use Prototypes (pdf) – by Tischler & Associates, July 2002
Civic Economics – Andersonville Study of Retail Economics.