DO YOU SHOP LOCAL???? A study was conducted in Chicagos Andersonville neighborhood by the firm Civic Economics. The study analyzed ten locally owned restaurants, retail stores, and service providers and compared them with ten national chains competing in the same categories. The study found that spending $100 at one of the neighborhoods independent businesses created $68 in additional local economic activity, while spending $100 at a chain produced only $43 worth of local impact. The difference was due to four factors: Local Payroll—The locally owned businesses spent a larger share of their revenue on local labor (29 vs. 23 percent), because they carried out all management functions on-site, rather than at corporate headquarters. Procurement—The local retailers spent more than twice as much buying goods and services from other local businesses. They banked locally; hired local accountants, attorneys, designers, and other professionals; advertised in local media; and sourced inventory from local firms. Profits—Because their owners live in the area, a larger portion of the local retailers’ profits stayed within the local economy. Charitable giving—The local retailers donated more on average to local charities and community organizations than the chains did. Happy Small Business Saturday:-)
Posted on: Sat, 30 Nov 2013 19:52:59 +0000
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