Residents of a given town or city are often encouraged to support local businesses by looking to these firms to fill their needs. Small businesses are not just integral parts of communities, employing millions across the country, they also are operations that fund the very communities they service.
Efforts to promote shopping local appear to be working. According to the Commonwealth Financial Group, over the last several years there has been a shift in consumer purchasing behavior marked by a preference among consumers to support locally owned shops and stores over big-box retailers and even online shopping. The following are some key reasons why shopping locally not only benefits small business owners, but also the communities they call home and the customers they serve.
• More money stays in the community: According to the American Independent Business Alliance, for every $100 spent at a local business, $68 remains in the community. Conversely, only 43 percent of every $100 spent at a chain retailer stays in the community.
• Job creation: The Business Alliance for Local Living Economies says local businesses create the majority of economic growth. They employ millions of Americans by creating roughly two-thirds of private sector jobs. Local business owners also tend to hire people who represent the demographics of the communities where the business is located, which may include historically underserved populations.
• Diversity of products: Local stores tend to diversify their products and services to meet the needs of the local communities, whereas chain stores often stock their shelves based on national demands.
• Personalized service: A small business owner may be more inclined to go to great lengths to make customers happy because the long-term success of the business depends on customers becoming repeat customers.
• Personal connection: Knowing the people behind a business facilitates a connection not easily achieved with other companies. Customers may celebrate when a favorite business succeeds and look to spread the word about that business because they feel like they played a positive role in its success.
Shopping locally has gained momentum and is fueled by the many advantages to supporting local businesses.