These days, its hard for local businesses to stay open. They face stiff competition from big-box chain stores, as well as from online retailers, which can usually offer lower prices and a larger selection.
Despite the competition from large retailers, small businesses are thriving and still make up 99.7% of U.S. employer firms.[1]
If you want to see your town’s local businesses survive, the best thing you can do is go the extra mile – or more accurately, stay close to home – to shop there.
-why it matters-
When you have shopping to do, don’t let major chain stores and internet retailers tempt you. By keeping your dollars in your hometown has other advantages that are just as important as saving a few bucks, even if they’re not immediately obvious.
Here are just several of the many benefits you can reap by shopping locally:
Stronger economy
Local businesses hire local workers. In addition to staff for the stores, they hire local architects and contractors for building and remodeling, local accountants and insurance brokers to help them run the business, and local ad agencies to promote it. They’re also more likely than chain stores to carry goods that are locally produced, according to the American Independent Business Alliance. All these factors together create a “multiplier effect,” meaning that each dollar spent in a local store can bring as much as $3.50 into the local economy.
Closer Community
Shopping at local businesses gives neighbors a chance to connect with each other. It’s easier to get to know someone you see often than someone you only wave to on your way in and out of your house. Knowing your neighbors makes it possible to exchange favors, such as pet-sitting or sharing tools.
Clearner environoment
Keep your city clean and green for future generations to be seen.
Having stores in your immediate neighborhood means you can leave your car parked and do your errands on foot or on a bicycle. If you could make just one trip each week on foot instead of making a 10-mile round trip by car, you would reduce your annual driving by 520 miles. This would save more than 24 gallons of gas and keep 0.2 metric tons of CO2 out of the atmosphere, according to calculations from the Environmental Protection Agency.
To learn more about local businesses in your area, set aside a day to explore your town and see what it has to offer. Since part of the benefit of shopping local comes from being able to run errands on foot, leave your car at home and focus on the area within walking distance, if possible.
Better Health
Running errands on foot is better for your health. It provides much-needed exercise that helps keep your weight under control, strengthens your heart, and prevents disease.
-Shopping locally-
Once you’ve identified local businesses in your area, the next step is to make shopping at them part of your usual routine.
Budget
Set aside a small sum in your personal budget each month specifically for local shopping. Then when you want to buy something at a local store but you’re hesitating over the price, you can simply take the extra dollars out of your local shopping budget. For instance, if a local, independent bookstore is charging $20 for a book that’s only $14 on Amazon, you can count the extra $6 as part of your local shopping budget for the month.
local services
Goods are often cheaper at big-box stores that sell cheap, mass-produced wares. However, services are often just as cheap (or even cheaper) when you buy them locally. For example, my local auto mechanic typically charges lower prices (and does better work) than the dealership. Likewise, taking a pair of worn-out shoes to my local shoe-repair shop for resoling is cheaper than buying a new pair.
holiday season
Shopping local is a great choice for holiday gifts, because a present feels more special when it comes from your own hometown. Each year, American Express sponsors an event called “Small Business Saturday” on the Saturday after Thanksgiving to encourage people to start their holiday shopping at local businesses, and many independent businesses offer special sales on this day. Other local businesses have special deals or events for Plaid Friday, the day after Thanksgiving, as an alternative to the Black Friday sales at major retailers.
-eating locally-
Did you know that the food that you eat travels an average of more than 1,500 miles to reach your plate? When you buy local food or products that were manufactured in your country or even more locally, you are helping your nation’s economy. You also are supporting farmers directly. Most importantly, you are also reducing how much pollution you are causing indirectly through consumption. Local consumption can really help reduce your greenhouse gas emissions and your impact.
Buying items from farmer’s markets as opposed to buying from supermarkets is incredibly less energy intensive. A typical meal bought from a conventional supermarket chain uses 4 to 17 times more petroleum for transport than the same meal using local ingredients.
According to Local Harvest, on average, only 18 cents of every dollar spent on produce at the supermarket goes to the farmer. The remaining 82 cents goes to transportation, packaging and marketing. By buying local, you help local farms survive, protect local ecosystems and strengthen communities.
Shopping at farmers’ markets has several advantages over shopping for groceries at the supermarket.
learn more
-banking locally-
Another way to keep your money in your community is to literally keep your money at a local community bank or credit union, rather than at a large national bank. Banking locally offers several benefits:
lower cost
Many locally owned banks and credit unions offer the same services as the big national banks, such as credit cards and online bill payment. However, their rates and fees are typically quite a bit better.
The National Credit Union Administration, the federal agency that regulates federal credit unions, reports that compared to banks, credit unions typically offer higher interest rates on deposits, lower interest rates on loans, and lower fees. Furthermore, according to Bankrate, community banks have lower fees than “mega-banks,” and their rates on car loans are better.
better service
Community banks and credit unions offer more personal service because they serve a much smaller area. At a community bank or credit union, you can expect the teller to recognize you, remember your name, and take time to answer your questions.
- support -
- Write Online Reviews for Your Favorite Local Business
Your local business owner can’t compete with the marketing budgets of larger companies, but writing positive review for your favorite local haunts area on sites like Yelp is a great way to help the business gain exposure. Yelp reaches over 85 million people monthly and 90% of Yelp users say positive review affect their purchases.
Engage with Local Businesses on Social Media
If a local business you frequent has a Facebook page, Twitter account, or is on any other social media network, connect with them through your social media accounts. Whether you’re checking into a business on social media with your phone, or “liking” their posts, engagement with a local business’s social media page will have a huge impact on their visibility.
Make Recommendations to Friends and Family
Word of mouth marketing is vital to a small business. A great way to expose your friends to your favorite local businesses is to bring them there. Next time you’re setting up a lunch or meeting up with a friend for coffee, instead of meeting at a retail chain like Starbucks, choose to meet at an independently owned coffee shop or bookstore.
FINAL WORDS
When you invest money in your local economy, you’re not just helping local business owners – you’re also helping yourself. You’re making your town a better place to live in, with a rich character, a thriving economy, and a tightly knit community.
Although it may be difficult to execute this on a monthly basis, a good starting point is this holiday season.