How To Back Local, On A Budget.

Every dollar has a destination; Do you want yours to support your community or disappear into a corporate bottom line?

Especially now, many people think shopping from small businesses is out of their budget. But supporting local businesses doesn’t require big purchases to make an impact- a single coffee, pastry, or a handmade gift adds up. This money spent at small, local businesses also stays local; Civic Economics found that when you spend $100 at a locally-owned retailer, $45 of it tends to stay in the local community, compared with only about $13 when spent at a chain store. 

Beyond just where you spend, it’s also about how that spending spreads throughout the local economy. Local businesses are more likely to use local suppliers, hire local staff, donate to local causes, and reinvest profits locally- amplifying economic benefits. For example, The Institute for Local Self-Reliance found that independently owned stores recycle a much larger portion of their revenue into their communities than large chains do. This means that even small, few-and-far-between purchases can create a multiplier effect: your $5 here and $10 there, though it seems minute, can support a cycle of growth in your local economy and community.

Budgeting for local support can fit into anyone’s day-to-day. Maybe buying less product at a higher quality from a small business, delaying a purchase until a local option pops up, using your social power by sharing, tagging, or reviewing local businesses for free, or gifting local. All of these moves make a difference, even when money is tight. Data shows that income growth is correlated with the density of small, locally owned firms- so whenever you can make a small purchase or simply shout out your favorite local spot on social media, you support the growth of these small businesses, and in turn, your community. 

Buying locally doesn’t have to be all or nothing. With each small action, you help to build thriving neighborhoods, resilient economies, and stronger connections within your community.

Sources:

Economic Impact Analysis: A Case Study, Local Merchants vs. Chain Retailers, Civic Economics, December 2002 

Locally Owned vs. Chain: The Local Premium, Institute for Local Self-Reliance, July 2006 

Does Local Firm Ownership Matter?, Economic Development Quarterly, Volume 25 Issue 3, April 2011