The Economic Case for Shopping Small: Statistics You Need to Know

The Economic Case for Shopping Small: Statistics You Need to Know

Small businesses are the lifeblood of communities across the nation. They’re the cornerstones of Main Streets, the incubators of innovation, and the employers of millions. While the allure of big-box stores and online giants is undeniable, the economic case for shopping small is more compelling than ever. Let’s delve into the statistics that illuminate why supporting our local businesses is so crucial for the health and vitality of our communities.

The Multiplier Effect: Keeping Dollars Local

One of the most significant reasons to shop small is the “multiplier effect.” When you spend a dollar at a local business, a significantly larger portion of that dollar recirculates within the community compared to when you spend it at a large, often out-of-state, corporation. Studies show that for every $100 spent at a local business, roughly $68 to $73 stays in the local economy. This compares to only about $40 to $43 when that same $100 is spent at a national chain. This discrepancy is partly because local businesses are more likely to source their supplies and services locally, keeping the money within the community. National chains, on the other hand, often have centralized purchasing and their major expenses (rent, utilities, etc.) frequently go to large, often out-of-state, corporations like big banks or large utility providers, meaning those dollars leave the local economy quickly. This means your money is reinvested, supporting other local businesses, creating jobs, and funding community initiatives.

“Every small purchase makes a big difference.” – Unknown

Job Creation: The Engine of Local Employment

Small businesses are the primary drivers of job creation in communities across the country. They provide a substantial portion of local employment opportunities, often offering flexible hours and entry-level positions vital for young people, students, and those re-entering the workforce. Nationally, small businesses create approximately two out of every three new jobs. The potential impact of consciously shifting even a small portion of consumer spending to local businesses on job growth is substantial.

Community Investment: Building Stronger Communities

Small business owners are often deeply invested in the well-being of their communities. They are more likely to sponsor local sports teams, donate to local charities, and participate in community events. They are our neighbors, friends, and fellow community members, and their success often directly translates to the prosperity of the area. They understand the unique character and needs of their towns and are more likely to cater to them.

Beyond the Bottom Line: The Intangible Benefits

While the economic benefits are undeniable, shopping small also offers intangible advantages that enhance the quality of life in our communities. Local businesses often provide personalized customer service, unique product selections, and a sense of community connection that large corporations simply can’t replicate. They contribute to the character and charm of our towns, making them more vibrant and desirable places to live, work, and visit.

Making the Choice: Shop Small, Shop Local

The next time you’re deciding where to spend your money, consider the statistics. Choosing to shop small isn’t just a feel-good gesture; it’s a powerful economic decision that directly impacts the vitality of your community. By supporting our local businesses, we’re investing in our shared future, creating jobs, fostering economic growth, and preserving the unique character that makes our communities our homes. Let’s make a conscious effort to shop small, shop local, and build a stronger, more prosperous future together.

Article: The Economic Case for Shopping Small: Statistics You Need to Know created by Locally-owned the SBD