Citations for studies of economic impact of spending with



Anecdotal claims by local independent business owners are now replaced with detailed professional economic analyses, establishing repeatedly that spending with locally owned independent businesses generates substantially greater economic impact than chain retailers, and there have been no studies or arguments disputing these findings.


Three times as much money stays in the local economy when spent with locally owned independents rather than national chains. Specifically, for every dollar spent locally, about 45 cents stays in the local economy, while the same dollar spent in a national chain only leaves 13 -15 cents in the local economy. Up to 80% of money spent in national chains literally leaves town in the night deposit. (Local Merchants vs. Chain Retailers, Austin, 2002,; Economic Impact of Locally Owned Businesses vs. Chains, Maine, 2003,; Andersonville Study of Retail Economics, Chicago, 2004 & 2005,


Even moderate increases in market share generate dramatic local economic impact. (San Francisco Retail Diversity Study, San Francisco, 2007, For example, with a population of 600,000, a 10% shift of spending from chains to locally owned independents could create $140 million of new local economic activity, enough for 1600 jobs with a $53 million payroll. (Examining the Impact of Local Business on the West Michigan Economy,

Grand Rapids, 2008,

Without any change to existing tax laws or enforcement practices, shifting a portion of sales from the internet to local businesses would have a significant impact as well. A recent Florida study concluded that for every billion dollars in online sales by out-of-state e-tailers, the state loses 10,000 jobs. The money leaves the state (instantaneously) and, without sales tax collection, none of it returns. In

California, the Board of Equalization has said that the state has lost over $1 billion in sales tax to online sales, so do the math. A billion in taxes means about $10 billion in sales According to the Floridamodel, that's 100,000 lost jobs in the state.


The Benefits of Buying Locally [Infographic] from
The benefits of spending more money within our own communities are far-reaching. Although there is an ongoing movement to shop more conscientiously, we still have a ways to go before these effects can be felt nationally. If you’re wondering what the benefits of buying locally might be, take a look at this infographic. It represents a compilation of information on the ways our spending can affect our environment and our lives.


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