When Small Business Fails, It Impacts Everyone
In a world where everything can be bought by the click of a button, it is becoming even more critical that communities make a concentrated effort to shop locally. While the convenience of online shopping is unmatched, it may be costing you more than you think.
Studies have shown when consumers shop local, significantly more money stays in the community. One particular study in Chicago found that independent retailers brought back three times as much money to their communities when compared to chain store rivals.1 In addition, small, local business, supports our community sports teams, school programs, local non-profits and of course hire many of our children for their first job.
Buying online, while convenient takes away from small businesses that make a difference in the communities. Spending with non-local vendors creates a massive gap between a community’s current economic state and what it could be if the money was kept in the neighborhood.
It is imperative to community development that local businesses are chosen over non-local alternatives. When money is spent in the community it is circulated through the local economy, which allows businesses to grow. As businesses expand, jobs are created and wages increase. An increase in jobs and wages creates more disposable income for local consumers.
As local businesses prosper
, sales tax base grows. That tax revenue can then be reinvested back into the community. Local governments can focus on neighborhood improvements in critical fields like education, public services, and infrastructure. This adds value to the area making it more attractive for prospective entrepreneurs and homebuyers.
While shopping locally may be costlier, it is important to keep in mind that the extra you might be spending is an investment in your community. In addition, you receive customer service that a computer can never provide and the pride in knowing you did your part to support your community.
Even government entities realize the importance of keeping their spending local. The Purchasing and Contracting Department for the County of San Diego spent $1.2 billion on procurement in the past year alone. The County prefers to do business with local businesses because they understand the tremendous economic impact they have on the region.
To encourage shopping local this holiday season, the North San Diego Business Chamber will be launching a “Think Local First” awareness campaign. The Think Local initiative is designed to grow jobs, strengthen our local tax base, and champion commerce in the region by encouraging local purchasing, hiring, and contracting of services. All of us can make a difference because change starts locally.
For communities to succeed, businesses, citizens, and government must make it a unified priority to keep spending in the region. Whether that be through contracting, hiring, or shopping, everyone plays a role in supporting the community. Where dollars are spent, plays a major role in the future of our neighborhoods. Together we can promote strong commerce and build vibrant communities.
1 The Multiplier Effect of Local Independent Businesses, https://www.amiba.net/resources/multiplier-effect
November 19, 2018
When small business fails, we are all impacted but rarely understand why.