Curious about why local matters?
Here is an overview of studies and books that support why our mission matters and some examples of success!
Source: Local Works! Examining the Impact of Local Business on the West Michigan Economy, September 2008, by Civic Economics, Local First West Michigan
Percentage of Revenue Re-‐circulated Locally: Wist (a local Arizona company) vs. Office Max
Source: Civic Economics, Wist Office Products financial survey, Office Max Annual Reports 2005, 2006, via Local First Arizona The Impact of Buying Locally
The Economic Impacts of Buying Locally: SCF Arizona Case Study, 2010, Applied Economics, Local First Arizona
A 555-‐employee company that makes a point of Thinking Local First in Arizona has a significant affect on the Arizona economy, and indirectly supports 3,573 jobs and $538 million in total output in Arizona.
Local Works! Examining the Impact of Local Business on the West Michigan Economy, September 2008, by Civic Economics, Local First West Michigan
This in-‐depth study from Grand Rapids shows, among other things, that a 10% shift in spending to locally-‐owned businesses could create 1,600 new jobs and a $137 million increase in local output.
Andersonville Study of Retail Economics, October 2004, by Civic Economics, Andersonville Chamber of Commerce & Andersonville Development Corporation
For every $100 spent at a locally owned business, $68 stays in the community compared with $43 that stays in the community when that $100 is spent at a chain. 70% of survey respondents prefer to shop at a locally owned business.
Local Works! Examining the Impact of Local Business on the West Michigan Economy,
September 2008, by Civic Economics
Local First in Grand Rapids, Michigan in partnership with Civic Economics and in western Michigan, a 10% shift of spending from chains to locally-‐owned businesses would create nearly $140 million in new economic activity, add over 1600 new jobs to the area, and provide over $50 million in new wages.
Procurement Matters: The Economic Impact of Local Suppliers, November 2007, by Civic Economics, Local First Arizona
This study demonstrates that a locally owned office supply company has 3 times more economic impact than a non-‐locally owned competitor. Local First Arizona used this study to influence the state’s procurement policies to favor locally owned businesses.
Charitable Contributions Comparison, January 2003
Small businesses give two and a half times more (per employee) to local charities than do medium or large businesses.
Santa Fe Independent Business Report, November 2003, by Angelou Economics
Money spent at a locally owned business has two times the economic impact of non-‐local businesses, and locally owned businesses preserve the important cultural uniqueness of the city.
The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Mid-Coast Maine, September 2003, by Institute for Local Self-Reliance
Money spent at a locally owned business creates three times the economic impact compared with non-‐locally owned big-‐box retailers. Locally owned businesses also give more (as a percentage of their total revenue) to local charities compared with their big-‐box counterparts.
The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Mid- Coast Maine
Institute for Local Self-Reliance and Friends of Midcoast Maine: A 2003 study in Maine found that when residents of the Midcoast region spend $100 at a big box retailer, their purchase generates $14 in local spending by the retailer. That same $100 spent at a locally owned business generates $45 in local spending, or three times as much. Dollars spent at a local retailer support not only that store, but also a variety of other local businesses, including local banks, accountants, printers, and Internet service providers.
Economic Impact Analysis: Local Merchants vs. Chain Retailers, December 2002, by Civic Economics, Austin IBA
Locally owned bookstores have about three times the local economic impact compared to national chains. A $100 shift in per-‐household holiday sales to locally owned businesses would create a $10 million impact to the local economy.
Thinking Outside the Box: A Report on Independent Merchants and the New Orleans Economy
The Urban Conservancy in partnership with Civic Economics: A 2009 study in New Orleans finds that shifting 10% of spending from chains to locally-‐owned businesses would create hundreds of new jobs and have the equivalent of injecting $60 Million annually in the form of re-‐circulating currency.
San Francisco Retail Diversity Study
SFLOMA & Civic Economics: A 2007 study in San Francisco analyzes the market share of several categories to find out what percentage is held by chains or locally-‐owned
businesses. It then calculates that if 10% of spending were shifted from chains to locals it would increase economic output by almost $192 Million, create almost 1300 new jobs, provide almost $72 Million in new income for workers, and create over $15 Million in additional retail activity.
Andersonville Study of Retail Economics
Civic Economics: A 2004 study (an extension of the Economic Impact study in Austin, 2002) compares the economic impact of ten Andersonville businesses and their chain store competitors and finds that for every $100 in consumer spending with a local firm, $68 remains in the Chicago economy whereas for every $100 in consumer spending with a chain firm, $43 remains in the Chicago economy. The study also states that great care must be taken to ensure that public policy decisions do not inadvertently disadvantage locally owned businesses. Indeed, it may be in the best interests of communities to institute policies that directly protect them.
Economic Impact study
Civic Economics: A 2002 study in Austin found that for every $100 spent at a chain bookstore, the economic impact was $13, whereas when spent with a local bookstore the economic impact was $45. It also shows that local merchants spend a much larger portion of total revenue on local labor to run the enterprise and sell the merchandise, keep their modest profits in the local economy, and provide strong support for local artists and authors, creating further local economic impact.
Indie City Index, January 2011, by Civic Economics
Bloomington’s independent retail sector ranks lower than the national average, yet many communities with Local First networks show a healthy independent retail sector.
Time to Switch Drugstores? October 2003, by Consumer Reports
Independent drugstores provide better service, are less likely to be sold out of key drugs, and have fewer lines at the counter. Overall, customers rate independent drug stores higher than all other types.
Impact of “Buy Local” Alliances on Local Business
Study Shows 58% of Local Citizens Are “Thinking Local First” More Often, November 2006, by Applied Research Northwest, Sustainable Connections
Sustainable Connections changed the buying behavior of their community. Many theorists will tell you that behavior change is difficult—but Bellingham begs to differ.
Holiday Sales Increase at Independent Businesses, National Survey Finds, January 2011, The New Rules Project
Each year, the Institute for Local Self Reliance surveys retailers, and consistently shows that independent businesses show stronger sales than large chains, especially in places with Think Local First campaigns. Local First Indiana member businesses participate in this annual survey.
Books
Small Mart Revolution: How Local Businesses Are Beating the Global Competition, by
Michael H. Shuman
Big Box Swindle, by Stacy Mitchell (Senior Researcher at the Institute for Local Self-‐ Reliance)
Agenda for a New Economy, by David Korten (BALLE Board Member)
Deep Economy: The Wealth of Communities and the Durable Future, by Bill McKibben Business Alliance for Local Living Economies (BALLE) is a national organization that supports local business networks in over 65 cities in the US and Canada.
http://www.livingeconomies.org
The Institute for Local Self-Reliance (ILSR) proposes a set of new rules that builds community by supporting humanly scaled politics and economics.
http://www.newrules.org/
