by Civic Economics, December 2002
This study examines the local economic impact of two locally owned businesses in Austin, Texas—Waterloo Records and Book People—and compares this with the economic return the community would receive from a Borders Books store. The study finds that spending $100 at Borders creates $13 worth of local economic activity, while spending $100 at the local stores generates $45 in local economic activity.
The difference is attributed to three factors: a higher local payroll at the independent stores (because, unlike Borders, none of their operations are carried out a an out-of-town headquarters office); the local stores purchased more goods and services locally; and the local stores retained a much larger share of their profits within the local economy.
BAYSIDE BARK / Bayside Bowl / Benchmark Real Estate / Bull Feeney's / Caravan Beads / Casco Bay EyeCare / Clark Insurance / ClickToast – Digital Advertising / Coffee By Design / CornerStone Building & Restoration / CrossFit Beacon / The Fish & Bone / Float Harder Relaxation Center / Gorham Savings Bank / Green Clean Maine / Joan Leitzer / Knack Factory / Liquid Riot / Longfellow Books / Maine Business Immigration Coalition / Maine Outdoor Film Festival / Malone Commercial Brokers / Marsh Agency / Nine Stones / Nomads / OTTO / Philip Spalding / Port Property Management / Portland Discovery Land & Sea Tours / Portland Food Co-op / Portland Downtown / Renys Department Store / Taproot Magazine / The SunriseGuide / University Credit Union / Wellness Connection of Maine / XPress Copy / YMCA of Southern Maine / Young’s Furniture