The benefits of businesses for the local economy are varied and numerous.
Local businesses have been a staple of economies all around the world ever since people first began trading for goods and services. With the increase of large corporations and chain stores, many local businesses have closed down or sold their assets and ceased operations. This is a problem on a number of levels, but economically, local businesses provide many advantages to the economy where they operate. Because of their advantages, it is important to patronize local businesses whenever possible to help preserve the local economy in your area.
Support Staff
One major advantage of local businesses to the local economy is that they typically employ a wide variety of supporting services that must also be obtained locally. For example, if a local business needs to add to its facilities, it will hire a local contractor. Local businesses might also require the services of a tax preparer, cleaning service or other local businesses, which increases the amount of work for everyone in the local economy.
Locally Made Goods
Small businesses also typically offer more locally produced goods than large chain stores do. If you have a product that you want to sell, like produce, you may find a local farmers’ market that will allow you to sell it. A chain store might purchase all of its strawberries from California or Florida, while you can sell yours right near your home. Because of this, individuals in the local economy are able to sell their goods and services at a local business, which benefits everyone in that area.
Keeping Money in the Area
Another advantage of local businesses is that more of the money spent at a local business stays in the local area. A study done in 2003 in Austin, Texas, by the American Independence Business Alliance found that out of every $100 spent at a nationwide chain store, only about $13 stayed in the local economy. However, out of every $100 spent at a locally owned and operated business, about $45 stayed in the local economy. This provides a huge boost to other local businesses, workers and families in the local area.
Tessier's Hardware and Home Brew 