Why We Should All Support Locally Owned Small Businesses
“If every family in the U.S. spent an extra $10 a month at a locally owned, independent business instead of a national chain, over $9.3 billion would be directly returned to our economy,” according to CustomMade Infographics.
Not only does buying from locally owned businesses put dollars back in our local economy, but it adds jobs and a number of other benefits.
According to the U.S. Small Business Administration (SBA), small businesses (those with 500 employees or less) represent 99.9 percent of all U.S. businesses. As of 2018, the SBA estimates there are 30.2 million small businesses employing a total of 58.9 million workers.
Keeping Dollars in the Local Economy
Compared to chain stores, locally owned businesses recycle a much larger share of their revenue back into the local economy. The Institute for Local Self-Reliance found that “for each $100 spent at local independents $45 of secondary local spending was generated compared to $14 for a big-box chain.”
Job and Wages
More jobs are created by locally owned businesses and, in some sectors, provide better wages and benefits than chains do. SBA statistics show that “since 1990, big businesses eliminated 4 million jobs, while small businesses added 8 million jobs. Small businesses created 1.9 million jobs in 2015 with some of the smallest firms – those with 20 employees or less – adding over half of the positions with a 1.1 million increase.”
Locally owned businesses contribute to strong communities by sustaining vibrant downtowns, building social and business networks, and contributing to local causes. In research done by Indiana Main Street, “only six cents of every dollar spent at a big box retailer stays in the local community.”
Small independent businesses select and create products based on their own interests and the needs of their local customers. This guarantees a much broader range of product choices. Small businesses often offer a more diverse inventory or specialize in providing unique or personalized customer experiences.
Better Public & Community Services
Locally owned businesses contribute to a stronger tax base and better use of public services compared to nationally owned stores. This means better public services like schools, transportation, and emergency response for you and your family. Local non-profit organizations, like youth sports leagues and social services, also receive strong support from locally owned businesses.
Support Locally Owned Businesses
So when given the chance to buy from a locally owned business we’d encourage you to do so. We think it is a great investment in our community and those that live here.