Economic Studies
Curious about why local matters? Here is an overview of studies and books that support why our mission matters and some examples of success!
Source: Local Works! Examining the Impact of Local Business on the West Michigan Economy, September 2008, by Civic Economics, Local First West Michigan
The Impact of Buying Locally
The Economic Impacts of Buying Locally: SCF Arizona Case Study, 2010, Applied Economics, Local First Arizona
A 555-employee company that makes a point of Thinking Local First in Arizona has a significant affect on the Arizona economy, and indirectly supports 3,573 jobs and $538 million in total output in Arizona.
Local Works! Examining the Impact of Local Business on the West Michigan Economy, September 2008, by Civic Economics, Local First West Michigan
This in-depth study from Grand Rapids shows, among other things, that a 10% shift in spending to locally-owned businesses could create 1,600 new jobs and a $137 million increase in local output.
The San Francisco Retail Diversity Study, May 2007, by Civic Economics
Redirecting 10% of the money spent at non-local retailers to locally owned retailers would create $200 million in increased economic output, 1,300 new jobs, and $72 million in new wages.
Andersonville Study of Retail Economics, October 2004, by Civic Economics, Andersonville Chamber of Commerce & Andersonville Development Corporation
For every $100 spent at a locally owned business, $68 stays in the community compared with $43 that stays in the community when that $100 is spent at a chain. 70% of survey respondents prefer to shop at a locally owned business.
Buying Locally Pays Big Dividends for Maine’s Economy, Dec. 2011, by The Maine Center for Economic Policy
A recent MECEP study found that when consumers buy from locally owned businesses Maine’s economy benefits much more than when they they spend at national chain stores.
The Impact of Local Procurement
Procurement Matters: The Economic Impact of Local Suppliers, November 2007, by Civic Economics, Local First Arizona
Percentage of Revenue Recirculated Locally: Wist (a local Arizona compnay) vs. Office Max
Source: Civic Economics, Wist Office Products financial survey, Office Max Annual Reports 2005, 2006, via Local First Arizona
This study demonstrates that a locally owned office supply company has 3 times more economic impact than a non-locally owned competitor. Local First Arizona used this study to influence the state’s procurement policies to favor locally owned businesses.
The Impact of Local Businesses on the Economy and Community
Santa Fe Independent Business Report, November 2003, by Angelou Economics
Money spent at locally owned businesses has two times the economic impact of non-local businesses, and locally owned businesses preserve the important cultural uniqueness of the city.
The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Mid-Coast Maine, September 2003, by Institute for Local Self-Reliance
Money spent at a locally owned business creates three times the economic impact compared with non-locally owned big-box retailers. Locally owned businesses also give more (as a percentage of their total revenue) to local charities compared with their big-box counterparts.
Charitable Contributions Comparison, January 2003
Small businesses give two and a half times more per employee to local charities than do medium or large businesses.
Economic Impact Analysis: Local Merchants vs. Chain Retailers, December 2002, by Civic Economics, Austin IBA
Locally owned bookstores have about three times the local economic impact compared to national chains. A $100 shift in per-household holiday sales to locally owned businesses would create a $10 million impact to the local economy.
Impact of “Buy Local” Alliances on Local Business
Study Shows 58% of Local Citizens Are “Thinking Local First” More Often, November 2006, by Applied Research Northwest, Sustainable Connections
Sustainable Connections changed the buying behavior of their community. Many theorists will tell you that behavior change is difficult—but Bellingham begs to differ.
Holiday Sales Increase at Independent Businesses, National Survey Finds, January 2011, The New Rules Project
Each year, the Institute for Local Self Reliance surveys retailers, and consistently shows that independent businesses show stronger sales than large chains, especially in places with Think Local First campaigns. Local First Indiana member businesses participate in this annual survey.
More…
Indie City Index, January 2011, by Civic Economics
Bloomington’s independent retail sector ranks lower than the national average, yet many communities with Local First networks show a healthy independent retail sector. Read our post about this study.
Time to Switch Drugstores? October 2003, by Consumer Reports
Independent drugstores provide better service, are less likely to be sold out of key drugs, and have fewer lines at the counter. Overall, customers rate independent drug stores higher than all other types.
More studies are also available here.
Books
Small Mart Revolution, by Michael Shuman (BALLE Research & Economic Development Director)
Big Box Swindle, by Stacy Mitchell (Senior Researcher at the Institute for Local Self-Reliance)
Agenda for a New Economy, bu David Korten (BALLE Board Member)
More relevant titles available here.
