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.
Allagash Brewing Co. / Bayside Bowl / BENCHMARK Residential & Investment Real Estate / Bull Feeney's / Casco Bay EyeCare / Casco Bay Frames & Gallery / Coffee By Design / CornerStone Building & Restoration / CrossFit Beacon / The Fish & Bone / Gorham Savings Bank / Green Clean Maine / Joan Leitzer / Teel Law Office, LLC / Liquid Riot / Longfellow Books / Maine Business Immigration Coalition / Malone Commercial Brokers / Marsh Agency / Max Ashburn / Nine Stones / No Umbrella Media, LLC / Nomads / OTTO / Philip Spalding / Port Property Management / Portland Food Co-op / Portland Downtown / Portland Farmers’ Market / Portside Real Estate Group / Renys Department Store / Runaways Run Club / Sanctuary Tattoo / Sebago Brewing Company / Stacy Mitchell / The SunriseGuide / Tsunami Tattoo / University Credit Union / University of Southern Maine / Wellness Connection of Maine / Young’s Furniture