Recently, I was looking through one of my designer’s sites (www.soundearth.com) and noticed the quote they had in their sidebar, “Every dollar spent with a local company will circulate within your community 21 times. Every dollar spent with a larger "big box" store will circulate only 7 times.”
Being a proponent of shopping locally and the owner of a small business, I thought this was intriguing and refreshingly scientific. I decided to do a little more research and it turns out that it is no secret that every dollar spent at a locally-owned business generates approximately three times more regional economic activity than a dollar spent at the typical "big-box" retailer.
Very interesting. You hear a lot of talk lately of how small business is the back-bone of the U.S. economy but not a lot of discussion on how and why. And even worse, as a small business owner you feel as though you are the most insignificant and under supported group in the mighty American economy. Completely taken for granted and left to fend for yourself.
When you break it down it is a very simple and basic premise and when you magnify all the thousands of small businesses across the country you begin to realize that the simple act of deciding to shop locally as often as possible has the power to change our communities and culture as a whole, to build a healthy, sustainable economy that encourages innovation and collaboration.
Simply put small local businesses…
1. Create higher paying jobs and reinvest back into the community.
2. Serve as community pillars and maintain a community’s character. They are unique places where a neighborhood’s individuality shines and citizens can experience a sense of place.
3. Employ an array of supporting services. They hire architects, designers, cabinet shops, sign makers and contractors for construction. Local accountants, insurance brokers, computer consultants, attorneys, advertising agencies help run it.
4. Carry a higher percentage of locally-produced goods than chain stores, meaning more jobs for the community.
5. Ensure choice and diversity. Though a single local shop may carry a smaller selection than a big chain, a multiplicity of independent retailers creates great diversity. Our freedom of choice suffers when a few buyers from national chains choose what does and does not reach customers.
6. Are essential to charitable endeavors, and small business owners frequently serve on local boards and support numerous causes.
7. Encourage walking, mass transit and less of a dependence on the car.
It seems so simple and makes total sense. But the American consumer (and yes I am one who is not so perfect myself) has to realize the impact of each decision they make when it comes to their purchasing power. Multiply your single decision to shop for convenience at the big box retailers by millions and millions and the result is sterile strip malls, fast food restaurants and chain stores that encourage sameness instead of individuality. What a scary future!
Want more info…check out BALLE’s website (Business Alliance for Local Living Economies) at http://www.livingeconomies.org.
