You’ve probably heard it a million times; however, buying within your local community from a locally owned business has never been more critical or beneficial than it is right now. We have been told over and over that small business is the true driver of our economy, yet we hear very little about small business or local economies in the news. So how can this be true if no one is talking about it? Simple… Jobs! According to the Small Business Administration, small business makes up about 98% of all U.S. employers and account for about 49% of all private sector employment.
What’s in it for me? I’m glad you asked! In general when we make a purchase, regardless if it is a local business or a national chain, our emotions are attached to either the money we just left in their cash register or to the item we just purchased. We tend to consider such transactions as being beneficial mostly to that business and not beneficial to us. We could not have been more wrong. Forget about reward cards and loyalty points, the main benefit to buying locally is RELATIONSHIP! Who cuts your grass? Where do you get your clothes dry cleaned? Who makes the best burger or pizza in your neighborhood? How about an oil change or car wash? In the famous words of Gary Portnoy, who penned and performed the themes song to 80s sitcom “Cheers”, I want to go where everybody knows my name!
A recent article in the Houston Business Journal listed 5 very specific and very selfish reasons to buy local, particularly in the B2B sector. According to this article, these benefits include: word of mouth advertising, favorable treatment or discounts from the owners, cross-promoting opportunities, time convenience, and extra support for your business/charity efforts. No matter which way you look at it, buying local helps everyone!
DOLLARS SPENT WITH LOCALLY OWNED COMPANIES ARE REINVESTED BACK INTO THE COMMUNITY SEVERAL TIMES OVER!
Here are some examples of why it makes sense to buy from local independent businesses:
- Local independent businesses support local accountants, attorneys, merchants, banks, insurance firms, restaurants, and other community resources.
- Local independent businesses pay more taxes and rarely receive tax breaks or subsidies.
- Local independent businesses make up the distinctive personality of the community.
- Local independent businesses sustain a healthy and vibrant main street USA.
- Local independent businesses support local charities.
- Every dollar spent at a local business will turnover five to seven more times in our economy, based on the national average.
- For every $100 you spend at a local business, $68 of it stays in our community, in comparison to $43 when buying from a chain store.
Source: Andersonville Study of Retail Economics