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Shopping Local: Why It’s Good for the Economy

Shopping Local: Why It’s Good for the Economy

Shop local or buy from large big box stores or online retailers? That is the ongoing question that many consumers ask themselves. Many feel that they are getting a better deal at the larger online retailers, but at what cost?

Since the inception of large retail online stores, there is no doubt that small businesses have suffered. But have you ever stopped to consider the big picture? Would it be better for the economy to shop locally?

Shopping local businesses has many advantages, including lower prices, more variety, better customer service, and stronger communities.

Let’s look at some reasons why shopping local is good for the economy.

Shopping Local Boosts the Economy

To begin with, let’s clarify what it means to shop locally. Shopping locally does not include your big box stores and large franchises. Instead, it refers to your mom and pop stores, boutiques, and privately owned businesses in your community.

Want to better your community? A big benefit of shopping local includes keeping more tax dollars in the community.

Shopping at large local retailers will not funnel as much tax money back into the community as it does when you shop at local shops and smaller businesses. You want to keep those tax dollars in your community and not send them elsewhere.

According to Better Accounting, a recent study shows that for every dollar spent at a small business, 68% of that amount funnels back into the community. Compare that to the 46% that trickles back from large companies.

In addition, on average local shops and stores circulate 52% of their revenue locally, whereas the larger chains only distribute 14%. That’s a huge difference.

That means more tax dollars are available to help fund services such as fire and police, education, libraries, health services and road maintenance.

Shopping Locally Creates More Jobs

Shopping locally stimulates the community’s economy, which means more demand for services and goods, which in turn means more jobs are needed to keep up with demand. It’s very simple. More business equals more jobs.

Small local businesses account for a large percentage of new jobs created each year. In addition, local community businesses provide some of the most stable employment. These employees then turn around and spend in the community. It’s a win win for all!

The U.S. Small Business Administration (SBA) estimates that small business owners create two-thirds of all new private-sector jobs and over half of the nation’s workforce is employed by small businesses. In fact, the SBA reports that nearly one out of four Americans works for a small business. Moreover, this number has been steadily increasing since 2000.

Do You Agree?

Shopping locally has become an increasingly popular trend in recent years, and it just makes sense. The economy is still struggling, and consumers are looking for ways to save money. When you shop locally, you support your local businesses and communities.

However, shopping local isn’t just about saving money. It’s also about supporting small businesses and helping your community.

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