The economic impact of shopping local

It’s no secret that local shopping has become a buzzword. Have you ever wondered what the economic impact of shopping local is? Read on to learn about the economic impact of shopping locally and how we can live healthier lives.

The economic impact of shopping local

The local economy will grow

When you shop locally, your money flows through your community and creates a multiplier effect. In turn, local money is then reused locally, increasing general economic activity. This includes paying more wages and strengthening the local tax base. It is estimated that if you spend with local business, more than 50% could stay local.

Also, house values ​​often go up in communities served by successful small businesses. This growth helps to attract new investment and increase local tax revenues over time. Increasing local tax revenue helps us invest in infrastructure and equipment.

The benefits of a successful small business don’t end with the economic benefits. Equally important is that independent companies define the community’s self-image and create a sense of pride for the people who live there. Simply put, these companies shape the identity of our communities. The places we eat, shop, and have fun have the potential to make a community feel at home.

Positive effects on your local economy

If you shop locally, a higher percentage of your money stays in the community- up to four times more than buying from a national supplier. This in turn stimulates the growth in the number of local businesses and jobs. Also, a higher percentage of the taxpayer’s money is passed directly to the local community.

Build a closer and stronger community

Local purchases ensure greater social and economic investment in our local communities by creating jobs and allowing more money to circulate in the local economy.

Shopping locally also has an impact on strengthening relationships with the community. Local businesses are more likely to share common interests with you and are therefore more likely to contribute to local concerns and make your neighborhood better.

Increased choice for consumers

Because local businesses have a smaller consumer base, they have the advantage of tailoring their products and sales strategies to their communities. This makes it possible to increase the diversity of local products and services and to better meet the demands of the community.

Also, products from local artisans or producers enable consumers to share their community’s culture with their friends and family around the world.

Reduces the impact on the environment

Local businesses are less likely to be importing globally, leaving a lesser carbon footprint.

For example. Every year the United States ships and ships products from more than 150 countries, valued at an estimated $ 2.2 trillion. With annual fuel consumption of 11 billion gallons and the associated CO2 pollution, shipping products cause around 25% of the US’s global CO2 emissions.

There is room for improvement. Also, industrial manufacturing accounts for about 50% of the world’s pollution. According to eLocal, it was found that a 10% shift to local meat/product would result in a 310,000-gallon reduction in fuel annually, as well as a 7.3 million pound reduction in CO2 production.

Other analyzes have even found a positive correlation between a higher concentration of small businesses in a community and a higher level of health in the population.

Best customer service

When you shop at local businesses, you are considered an individual rather than a consumption statistic. You get a personal connection with the local owners – face to face. The relationship between residents and small business owners often spans years and so the service is often better.

Promotes local entrepreneurship

By developing local entrepreneurs, we can “recruit from within” rather than always trying to recruit from the outside. Small businesses have the potential to grow into big businesses. Also, the local economic growth will attract new talent and skilled workers who, in turn, will be able to start their own business, thereby improving our local economy and promoting local entrepreneurship.

Contribution to local government with taxes

When consumers patronize local small businesses, they are essentially giving money back to their local community. A successful local business will generate high income, which means the business will pay higher taxes, including local property taxes.

This money is then used for the local police and fire brigade as well as for schools. A successful small business can also improve property values ​​across the community, improve the bottom line for every homeowner while generating more property taxes for local governments.

The impact of small businesses on the growth of the local economy also comes in the form of sales taxes. Local businesses levy sales taxes based on their location and can be the backbone of special tax districts that focus on unique projects like lighting and sidewalk projects to enhance historic shopping areas and attract customers.

Adaptation to Climate Change

Many small businesses also can respond quickly to and adapt to economic climate change. This is because small businesses are often very customer-centric and understand the needs of the community.

Many local customers remain loyal to their favorite small businesses amid the economic crisis. This loyalty means that small businesses can often stay afloat during difficult times, which can further boost the local economy. Small businesses also generate less income than large businesses, which means they may have less to lose during times of economic crisis.

Other economic impacts of shopping local

Aside from providing direct support to keep your local businesses, unique city, and economy alive, there are many more reasons to shop at your local businesses.

These include:

  • Developing a personal relationship with the local business, its owner, and employees.
  • Improved personalized customer service from people who know your name and your tastes and interests
  • There is a wide variety of locally and ethically sourced produce from local farms, bakers, grocers, etc. There is often an opportunity to try the products before buying
  • Be free from hidden or neglected charges like time, fuel, postage for returns, taxes, and fees.


We cannot imagine a world without our local businesses – they help keep our communities alive.

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