by Civic Economics, May 2007
This study finds that San Francisco remains a stronghold for locally owned businesses, which generate sizable benefits for the city’s economy. The study has three parts. The first calculates market shares for independents and chains in several categories: bookstores, sporting goods stores, toy stores, and casual dining restaurants. In all four categories, independent businesses capture more than half of sales within the city of San Francisco, a much larger share than they have nationally. The second part examines the economic impact of locally owned businesses versus chains.
It finds that local businesses buy more goods and services locally and employ more people locally per unit of sales (because they have no headquarters staff elsewhere). Every $1 million spent at local bookstores, for example, creates $321,000 in additional economic activity in the area, including $119,000 in wages paid to local employees. That same $1 million spent at chain bookstores generates only $188,000 in local economic activity, including $71,000 in local wages. The same was true in the other categories. For every $1 million in sales, independent toy stores create 2.22 local jobs, while chains create just 1.31.
The final part of the study analyzes the impact of a modest shift in consumer spending. If residents were to redirect just 10 percent of their spending from chains to local businesses, that would generate $192 million in additional economic activity in San Francisco and almost 1,300 new jobs.
Aikido of Maine / 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 / Lena Geraghty / Liquid Riot / Longfellow Books / Maine Business Immigration Coalition / Malone Commercial Brokers / Marsh Agency / Nine Stones / Nomads / OTTO / Philip Spalding / Planet Dog / 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