Why Buy Local? Economic Advantages Of Local Businesses.pdf

## Why Buy Local? - Key Advantages Summarized

This report from Michigan State University's Center for Community and Economic Development (CCED) highlights the economic benefits of shopping at locally owned businesses. It emphasizes eight key concepts:

1. Job Creation: Small local businesses, defined as independently owned with fewer than 100 employees, are the largest employers nationally, accounting for over 52% of all U.S. employees. They have been responsible for adding 5.1 million new jobs since 2003.

2. Keep Money in the Community: When consumers spend money at local businesses, it stays within the community and circulates repeatedly, boosting economic activity and funding local services. The "Local Premium" represents this added benefit of locally owned businesses compared to chains.

3. Recirculation of Dollars: A study comparing a Grand Rapids locally-owned business to its non-local competitor shows that significantly more money recirculates within the local economy when purchases are made at the local business, due in part to their tendency to source from other local businesses.

4. Enhanced Economic Impact: For every $100 spent at a locally owned business in Grand Rapids, $73 remains in the local economy. In contrast, only $43 stays local when spending occurs at a non-local business.

5. Charitable Contributions: Locally owned businesses contribute more to local charities and fundraisers than national chains. A case study of Mid-coast Maine found that one local business contributed $4,000 for every $1,000,000 in sales compared to Wal-Mart's $1,000 contribution.

6. Community Investment: 91% of local business owners contribute to their community through volunteering and donations, supporting local schools, nonprofits, and community groups.

7. Sustainable Practices: Locally owned businesses often use local resources sustainably and employ workers at decent wages, contributing to a more self-sufficient and less dependent community.

8. Fostering Local Identity: Buying local helps nurture a vibrant and distinctive local culture, strengthening the sense of community.