There’s a common misconception that “bigger is better” – but when it comes to your purchases, the best things come in small packages…sometimes very small ones.
That’s why so many people are choosing to start the new year by shopping at local, independently owned businesses.
Why shop local? Here’s a few reasons.
1. You are making a HUGE impact on your local economy
According to the 3/50 Project, for every $100 spent in locally-owned independent stores, $68 returns to the community through taxes, payroll and other expenditures. If that same $100 was spent at a national chain only $43 stays in the community, and shopping at a big online chain like Amazon means no money comes home. Like, ZERO.
Spending money locally directly affects the type of community you hope to live in, largely because of the importance of taxes. All sales taxes and property taxes from a local business rolls directly back into the community’s infrastructure, providing for excellent safety services, good schools and decent roads.
Even more impacting is the direct effect of local purchases on the profits and payroll of a business. A larger percent of a purchase at an independently-owned store stays with that business, and most businesses in town employ local people – who then spend their disposable income on other local businesses.
We asked Tracy Graziani, an organizer of the Mansfield, Ohio-based “Be Focal Buy Local” small business advocacy group for another perspective on local economies.
“When people are driving out of town to make purchases, they are driving on our roads to go out of town and make purchases that will pay for someone else’s roads,” Graziani said. “When you start taking your business out of town, it’s a cascading effect.”
2. You’re employing your friends and neighbors
Shopping locally is an easy way to give back to the community you live in, especially when you are buying from people you know. Think about it: How many people do you know that either own a business or know someone who does? In virtually every community, it is easier to find a small businessperson than a good cup of coffee.
When you shop local, you’re supporting businesses and your friends and neighbors who own and work in those businesses, and who in turn support the community.
The impact spreads beyond just commerce, too.
Supporting local business owners has a direct effect on your community because business owners are often active community members. We asked Jodie Perry, president of the Mansfield – Richland Area Chamber of Commerce about this, and she noted the owners of local small businesses are oftentimes serving on boards of nonprofits, as city council members or trustees, or fundraising for local athletic teams.
3. You are enriching your own community
So – besides you being super cool – what happens when more shopping dollars stay home and support your friends and neighbors? Good stuff, it turns out.
By shopping locally and rolling dollars back into the infrastructure of your community, you are directly influencing the quality of where you live.
LocaLynx’s hometown of Mansfield, Ohio, is bearing witness to that effect, according to Jennifer Kime, CEO of Downtown Mansfield, Inc. which organizes events such as the Final Friday concert series, the First Friday shop hops and the downtown Mansfield Farmer’s Market. The events as well as others are growing attractions partly because of a strengthening “buy local” economy.
“Customers who support those type of local events here and throughout the county, strengthen business growth and enable and encourage more events and businesses,” she said. “Growth in entrepreneurship means growth in the local economy and that is developed primarily through the support of local shoppers encouraging and investing in local businesses.”
So there you have it. You don’t have to be wealthy, famous, or particularly powerful to have a huge impact on your community. All you have to do is make the choice to keep a little more of your money here at home.
From investing dollars back into the local market to employing your friends and neighbors, your money spent locally ultimately comes back to you in the best way. It’s the easiest way to invest in yourself, and to become a catalyst of change in your community.
About the author — LocaLynx is a free mobile app that helps people shop local and save money. It was launched in Mansfield Ohio in September of 2015 and features over 120 Mansfield Area Businesses. Since September LocaLynx has been downloaded by over 5,000 people and is used daily throughout the area. Click here to download.
