Civic Economics Localization Study
"Choosing a locally owned store generates almost four times as much economic benefit for the surrounding region as shopping at a chain, a new study has concluded. The analysis also found that eating at a local restaurant produces more than twice the local economic impact of dining at a chain restaurant.
The research firm Civic Economics analyzed data from fifteen independent retailers and seven independent restaurants, all located in Salt Lake City, and compared their impact on the local economy with four chain retail stores (Barnes & Noble, Home Depot, Office Max, and Target) and three national restaurant chains (Darden, McDonald’s, and P.F. Chang’s).
The study found that the local retailers return an average of 52 percent of their revenue to the local economy, compared with just 14 percent for the chain retailers. Similarly, the local restaurants re-circulate an average of 79 percent of their revenue locally, compared to 30 percent for the chain eateries.
What accounts for the difference? In a handy graphic, Civic Economics shows the breakdown. Independent businesses spend much more on local labor. They also procure more goods for resale locally and rely much more heavily on local providers for services like accounting and printing. This means that much of the money a customer spends at a local store or restaurant is re-spent within the local economy, supporting other businesses and jobs." (http://www.ilsr.org/independent-businesse-deliver-bigger-economic-benefit/)
- The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/independent-businesse-deliver-bigger-economic-benefit/