(with documentation to back them!)
By choosing local and independent businesses for your services, shopping, dining and other needs, you not only get real value and personal service, you’re helping:
The casual encounters you enjoy at neighborhood–scale businesses and the public spaces around them build relationships and community cohesiveness. (source 1, source 5) They’re the ultimate social networking sites!
STRENGTHEN YOUR LOCAL ECONOMY!
Each dollar you spend at independent businesses returns 3 times more money (source 2) to your local economy than one spent at a chain (hundreds of times more than buying from an online mega-retailer) — a benefit we all can bank on.
CREATE A HEALTHIER ENVIRONMENT!
Independent, community-serving businesses are people-sized. They typically consume less land, carry more locally-made products, locate closer to residents and create less traffic and air pollution. (source 3) More on this topic: Buying Green Means Buying Local.
More efficient land use and more central locations mean local businesses put less demand on our roads, sewers, and safety services. They also generate more tax revenue per sales dollar. The bottom line: a greater percentage of local independent businesses keeps your taxes lower. (source 4)
A wide variety of independent businesses, each serving their customers’ tastes, creates greater overall choice for all of us.
CREATE JOBS AND OPPORTUNITIES!
Not only do independent businesses employ more people directly per dollar of revenue, they also are the customers of local printers, accountants, wholesalers, farms, attorneys, etc., expanding opportunities for local entrepreneurs.
GIVE BACK TO YOUR COMMUNITY!
Small businesses donate more than twice as much per sales dollar to local non-profits, events, and teams compared to big businesses. (source 5)
INCREASE WEALTH OF RESIDENTS!
The multiplier effect created by spending locally generates lasting impact on the prosperity of local organizations and residents. (source 6)
ENHANCE LOCAL DEMOCRACY!
Local ownership of business means residents with roots in the community are involved in key development decisions that shape our lives and local environment.
ENHANCE HEALTH OF RESIDENTS!
Research shows a strong correlation between the percentage of small locally-owned firms and various indicators of personal and community health and vitality. (source 7)
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1. “Scale of Agriculture Production, Civic Engagement, and Community Welfare” by T Lyson and R. Torres, Oxford Journals, 2001.
“The Configuration of Local Economic Power and Civic Participation in the Global Economy” by T. Blanchard and T. Matthews, Project Muse, 2006.
2. “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.
3. “Neighborhood stores: An overlooked strategy for fighting global warming” by Stacy Mitchell, Grist.
4. Fiscal Impact Analysis of Residential and Nonresidential Land Use Prototypes (pdf) – by Tischler & Associates, July 2002. Key findings: Specialty retail — primarily small neighborhood-located business — generate a net annual return to municipalities of $326 per 1,000 square feet of store space. Business parks, offices, and hotels also generated positive net revenue. However, the infrastructure and maintenance costs generated by big box retail outweigh tax revenues, resulting in a cost to taxpayers of $468 per 1,000 square feet of floor space each year. Fast-food outlets were the most burdensome development, costing taxpayers $5,168 per 1,000 square feet.
5. In a study for the Small Business Administration, Business Contributions to Community Service (1991), Dr. Patricia Frishkoff of Oregon State University analyzed charitable giving by firm size. She found companies with fewer than 100 employees gave an average of $789 per employee in cash and in-kind donations, compared to $334 per employee at firms with more than 500 employees.
Dig deeper and master one key concept: The Multiplier Effect of Local Independent Businesses