WHY SUPPORT LOCALLY OWNED BUSINESSES?
The problem facing our economy is the lack of jobs and all indications are that it won’t be getting better soon for many. Many are turning to entrepreneurship and starting their own businesses as their solution – and THEY need our help and support.
People are starting small retail businesses and business out of their home in the thousands every day selling products and services they believe in. We have the power to help revitalize our economies by spending our money where it is best used – in our communities.
Here are some points to think about before you read on to some of the reasons why Buying Services and Products Local is a good idea –
- For every $ spent in a large chain store, little of the money stays within a community
- For every $ spent in a small local business, a majority of the money stays within the community and is supporting someone in the community.
We read in the papers all the time what some of the larger chins do with the extra 24% – they waste it on themselves. This is less likely to happen in small communities that are balanced.
So Why local?
1. KEEPS MORE DOLLARS IN THE COMMUNITY
For every $100 spent at a locally owned business, $45 stays in the local economy, creating jobs and expanding the city’s tax base. For every $100 spent at a national chain or franchise store, only $14 remains in the community. *
2. SUPPORTS ENTREPRENEURSHIP IN OUR COMMUNITIES
Entrepreneurship fuels America’s economic innovation and prosperity, and serves as a key means for families to move out of low-wage jobs and into the middle class. Plus, the success of locally owned, independent businesses provides real-life inspiration to our young people, proving that they can stay in their community and prosper on their own terms.
3. FOSTERS LOCAL JOB CREATION
Small local businesses are the largest employer nationally and in our community, and provide the most jobs to residents. Studies show that locally owned businesses create more jobs locally and, in some sectors, provide better wages and benefits than national chains.
4. HAVE MORE CHOICES
A marketplace of thousands of small businesses helps to ensure more innovation and competition, and lower prices over the long term. Independent businesses, choosing products based on what their local customers need and desire, not a national sales plan, guarantees a more diverse range of product and service choices.
5. BENEFIT FROM LOCAL OWNERS’ EXPERTISE
Local business owners and employees often possess a level of expertise and a passion for the products they sell that is unmatched by employees and managers of national chains. They also tend to have a greater interest in getting to know their customers—who are, after all, also their neighbors. Simply put, local owners and employees take a special pride in their trade.
Local businesses often hire people with a better understanding of the products they are selling and take more time to get to know customers.
6: BUY LOCAL TO SUPPORT YOURSELF
Studies show that when you buy from an independent, locally owned business, rather than a nationally owned business, significantly more of your money is used to make purchases from other local businesses, service providers and farms continuing to strengthen the economic base of the community. Support them and they support you.
This question is best answered by Michael H. Shuman, author of the book Going Local. “Going local does not mean walling off the outside world. It means nurturing locally owned businesses. Control moves from the boardrooms of distant corporations and back into the community where it belongs.”
Hi Andy, I couldn’t agree with you more. I always try to stay within my city limits when purchasing items. That’s why I like using businesses from the Chamber or my referral groups first before going to someone else.
On my website, I only chose products that are made in the USA. I know they aren’t local to me, but it’s better than buying from another country. We’re in dire circumstances and we need to help each other as much as we can.
Excellent points, Andy. I am passionate about supporting local businesses too. So much so that I combined it with another passion of mine, supporting our schools, and created a program called the 10% Solution. Here’s how it works. We get the local businesses to agree to give 10% off their services when a “10% Solution” card is presented. And we ask the businesses to make a small donation (typically $25-$50) to offset marketing costs. Then we give the cards to our local non profits and they sell the cards, keeping 100% of the proceeds. Everyone wins! Local businesses get more exposure and business, schools and other non profits get a 100% fundraiser and the community as a whole is stronger and more focused on supporting local endeavors. Thanks for your post.
This is something I have followed for many years. It has become more challenging since I moved downtown Minneapolis. The number of locally owned business not including restaurants is limited. Thanks for reminding me to look a bit harder.
After watching “Walmart, the high cost of low prices”, I got a new awareness of the benefit of buying local. It’s easy and convenient to buy at a place like Walmart, but as I find my favorite local merchants I try to visit them whenever I can.
Great points Andy! My neighbor and I were just talking about this the other day. One other thing we mentioned was that, in most cases, you get much better customer service and a locall ownened business. – Sort of goes along with # 5.
I always aim to do this and sometimes am better then others. I love the local farmers markets for better fresher food but sometimes don’t have the time to go and do lots of ‘little’ shopping trips as they are only on at certain times. I would buy clothes in little local stores but they cost so much more but I do sometimes. It’s harder where I live here as these local stores are not as accessible – I loved living in Australia where in one short stretch of stores I could visit an independent greengrocer, a butcher, a kids clothing store, an independent shoe store. But when I have to drive between independent stores and spend so much more time it’s difficult when I’m so busy. Thanks for the reminder though – I shall make more of an effort.
So happy to see you write this blog! It is something we, too, are very passionate about. The city of Mountain View, where we operate our business, is also passionate about this and last year I joined a team of other small business owners here to support a Shop Local program that encourages people to shop local; as part of that program, the businesses participating committed to donate $500 to support the local schools, and that money has been accepted by the Mountain View Educational Foundation to support their math acceleration program. The city chamber is always exploring new ways to promote shopping locally while giving back to local causes. I think most people are not aware of where their dollars go or how they are spent within (or without) a community, so raising that awareness is important. I hope lots of people read your blog! I plan on sharing it on my facebook page.
First of all, I enjoy the visuals of your blog. And, you got me on the word “Passion.” As a Passion Test Facilitator, I have a deep respect for the force of passion, the purpose of passion, and how important it is in peoples’ lives. Having said that, I appreciate your community spirit by urging us to embrace our local businesses in the spirit of community thriving and fully owning the richness that already surrounds via the businesses that might be “at our finger tips.”
Hi Andy…thank you for this article. I’m in the process of writing a book on Slow Home, an off shoot of the Slow Food and Slow Movement. One of the tenets is to stay within your community. It’s a way of slowing down, simplifying and being sustainable. Your points are clear and perfect. Thanks!
Andy, I couldn’t agree more!! This has always been important to me. Most of my life was spent in urban areas (San Francisco & Seattle), and patronizing locally owned businesses was not difficult, as there are many to chose from. Whether a business services company or a restaurant, small, local and family operations are in abundance.
I now live in a suburban area, and it is much more difficult. Retail and dining options are dominated by big-box chains, which I loathe.
Bottom line… buy & support local businesses as much as possible. It sustains your community.
Andy I wholeheartedly agree and belong to SLGT Houston which stands for Support Local Grow Together. I look for opportunities to buy from local small businesses – farmers, cleaners, wine, vodka… It’s actually a pretty big list.
My friends joke that I buy groceries like a European because I go to market every several days because I always buy fresh. I also rarely eat at chain restaurants prefer locally owned establishments where the menu isn’t generic and you have some flexbility.
thanks for bringing to light this topic.
Love this post. I remember growing up, we never went anywhere execpt to Main Street where anything we needed was there- butcher, cheese shop, grocery store, book store, 5&10 (remember them?) gas station etc. We knew all the shop owners and they knew us (even as kids). It seemed the only big ‘box stores’ back then were Sears, Pennys, Monkey Wards and a clothing store like Macys.
I especially try to support the local mom and pop bookstores as they have really been eaten up by Borders and B&N box stores. The owners tend to learn your tastes and will recommend books for you. I also love the resurgence of Farmer’s markets over the past few years.
Your information was succinct and clear as to why there actually is an economic reason as to why we should be supporting local businesses. Thanks!
Candace Davenport
Our Little Books- Little Books with a Big Message
Great article
As a business owner I completely agree and love connecting with other local businesses to support & cross-promote one another. You just can’t beat the customer service and loyalty created when you develop a relationship with a local business owner.
Brandy Mychals
Awesome! I will be buying local! One of the reasons I love doing events is because I get to give small, local business owners the opportunity to put their business before the community.
I think its wonderful to educate people and remind us all of the benefits to our lives and to our own environment when we recognize and reward local establishments. I love to support local business, but I will acknowledge that most people think of the small picture – the price – when shopping and the chains and box stores often have great deals that local merchants cannot compete with. Our wages are so low for average workers they are caught in a cycle that is difficult to break. I am so happy that the cycle of life is returning back to service quality and taste, so small business can thrive once more, and the big picture benefits to all in a community, are being highlighted.
Great post.
Jen Duchene
The Home Makeover Mixtress blending cool and cozy style.
Thanks for all the great comments. As part of my passion in life, I help people find the right business to start and then to help them overcome their fears and beliefs that they don’t know how. Many of the businesses I use as “incubators” are the low cost of entry direct sales or MLM businesses. I find it interesting that many of the people I talk to that are in that industry – 95% of them DONT BUY from another home business. But they want others to buy from them…I think next week I’ll do a Post just on that.
Andy I had to comment because I so agree with your blog AND your last comment. I have been saying this to small buisness owners for years and their eye glaze over! I think the problem is how people “network” or connect. They try to make it reciprocal, instead of thinking of karma and getting the word out about who they buy from locally.
Ann Evanston
The Warrior is Within You
Excellent reasons for buying local. If I’m able, I would rather spend more money (within reason) buying from a local “Mom & Pop” business.
Looking forward to your post on home businesses that DON’T buy from other home businesses!