The Importance of Supporting Local Businesses
What Local Businesses Mean to Us
Living in the new millennium, we can see that the growth of small local businesses has been blooming more frequently as well as their transcendence with current trends. Local owners are taking upon themselves to revolutionize the industry they’re in and give the community a fresh breath of air. Although we still live in a market of large corporations and businesses, it is important to not forget that we also live in a world of many independent, family-run businesses that exist with storefronts often located just down the street from your house. By supporting your local businesses, you are not only directly supporting people in your immediate community and broadening your own horizons, but you are also making your own community a better place to live in.
Mom and Pop Shops
Imagine if instead of ordering all your groceries online or at the large food chain, you went to the local family-ran grocery store. Sure, it can be said that doing so would be potentially inconvenient. Given their independent nature; local, independent shops might not have the exact same stock or variety that you are used to from larger corporate outlets. Unlike online vendors, most local shops aren’t open 24 hours a day. However, given they have economic freedom, independent businesses can choose what products they will carry. They often provide alternatives that are even better or fresher than the products you would get at a large corporate store, and also carry items of a local or wider variety.
The Multiplier Effect
According to the American Independent Business Alliance, the Multiplier Effect is the idea that independent locally-owned businesses recirculate a far greater percentage of revenue locally, compared to absentee-owned businesses (also known as franchises). The Multiplier Effect is comprised of three elements. The “direct impact” is spending done by a business in the local economy to operate the business, including inventory, utilities, equipment, and pay to employees.
The “indirect impact” happens as dollars the local business spent at other area businesses re-circulate. The last element, the “induced impact” refers to the additional consumer spending that happens as employees, business owners, and others spend their income in the local economy. The AMIBA put together a graph from a Civic Economics 2012 study that showed the local recirculation of revenue by chain retails v. independents. The graph details chain retailers at recirculating 13.6% of local revenue while independent locally-owned businesses recirculated 48% of local revenue.
AMIBA also shared another study conducted by the Institute for Local Self-Reliance studying the Multiplier Effect in small communities in Maine. The study found that for each $100 spent at local independents generated $45 of secondary local spending. With big chain businesses and franchises only generated $14 of secondary local spending. These two studies show the power of $1 when spent at your local businesses.
Local Restaurants Care More
Nowadays, the public is flocking more to the new, trendy independent restaurants than the big restaurant chains. When eating at an independent restaurant, you will likely find a fresh and innovative take on a standard dish. The trend of going to a local eatery or any local business is serving as a way to break out of the mold and widening your horizons. A big difference between local eateries and corporate ones is that your feedback at the local restaurant will be more heavily appreciated and could determine future service (and there is a good chance you will also get to meet the owner or the cook!). http://www.gourmetmarketing.net/independent-restaurant-can-beat-national-chain-eateries/ (Hyperlink). Furthermore, local restaurants tend to get more involved with local charities and community events, while showcasing foods of the community.
How about when it comes to the patronage of white-collar businesses? Although large companies may be more prominent in the land of billboards, such companies often charge much more for the same service that a local independent company provides, all while spending significantly less time and energy on you and your business than the local company would. If you go to a local business that deals with local clients, you are not only signing up for specialized help from a team that intimately understands the local market, but you are also joining a network with other businesses and customers that support that local company too. Let us not forget, given this local company exists primarily to serve members of your immediate company, they are very likely going to be more interested in you do more to help you succeed than any corporation would.
How We Can Push Local Businesses Forward
When push comes to shove, there are plenty of compelling reasons to support local businesses. However, they all boil down to the same thing: local businesses create a better, stronger community for you and your neighbors to live in. We, at Promotion LA, are a digital marketing agency devoted to being a local business advocate and help to expand our clients’ brand through social media, website development, and SEO, among others. Our approach is to elevate our clients’ identities and integrate them into the community through the digital landscape. We only care about supporting local businesses and pushing them forward. Contact us at 310-405-7598 to learn more about what we can do for you.