Are you a little skeptical about the impact of supporting local independent businesses? Or maybe you’re thinking that local is more expensive and inconvenient. Let’s take a look at the most recent research.
According to the private research firm Civics Economics (http://www.civiceconomics.com/home.html ) on average, 48 percent of each purchase at local independent businesses was recirculated locally, compared to less than 14 percent of purchases at chain stores. This is significant! Recirculation is where you, the tax payer, see the greatest impact of your dollar! Recirculation means someone else in your community is also spending that dollar, probably the independent business where you made your original purchase. Each time that dollar is spent, more money goes into services in your community such as fire, police, ambulances, roads and parks. This ultimately reduces your tax burden. Additionally, local independent businesses are far more generous to local clubs and activities such as Little League, 4-H, and local festivals. The Institute for Local Self-Reliance estimates that local, independent businesses contribute four times more than Wal-mart and twice as much as Target to local charitable organizations and activities.
So ask yourself: If I purchase a $100 item at a local independent business, is that item $35 less expensive (the recirculation difference) if I buy it at a box store or online? Probably not. But even if that $100 item at a box store or online is $10 cheaper, have I really saved $10? Probably not. In reality that $10 savings, just turned into an additional $20 expense in higher property taxes and money for the kids’ baseball jerseys. Box stores and online shopping comes with a price most people don’t consider. That price is the economic vitality of your community!
Join us in celebrating local independent businesses during the month July! Click on the Shift 10% button to learn more!