Why Local Business Matters Essay Example

increased burden on taxpayers for safety and services. This means that when new big box stores arrive, it is likely that taxes will soon rise. Additionally, the supposed boost in sales tax revenue promised by these chains is largely misleading.

Unless there is rapid growth in a specific area, the retail spending, especially for mass-produced items sold at chain stores, remains relatively stable. A comprehensive study conducted by Dr. Kenneth Stone of Iowa State University on the impact of Wal-Mart on existing retailers revealed that 84% of Wal-Mart's sales merely diverted money from existing retailers, including some chain stores, in the same vicinity.

It is crucial to consider the actual consequences faced by a community when it loses its locally owned businesses. Independent local businesses provide employment opportunities for various supporting services such as architects, designers, cabinet shops, sign makers, and construction contractors.

Local professionals such as accountants, insurance brokers, computer consultants, attorneys, and advertising agencies contribute to the functioning of the local economy. Additionally, local retailers and distributors play a crucial role by carrying a higher percentage of locally produced goods compared to chain stores. This not only leads to more job opportunities for local producers but also fosters a sense of uniqueness in the community as chain stores are often identical to other units. Chain stores also bypass the need for local planning and rely on a minimal number of local goods and services. On the other hand, profits from company-owned stores are quickly sent to corporate headquarters rather than circulating within the local economy. Support for community-based merchants generates a multiplier effect, whereby each dollar spent at a local independent merchant results in three or

more times as much money re-entering the local economy compared to chain-owned businesses. For example, a 2003 economic impact study conducted in Austin, Texas by Civic Economics (commissioned by the Austin Independent Business Alliance) found that for every $100 spent at a chain store, only $13 remained in the community, whereas $45 remained when spent with hometown businesses.

Retailers play an essential role in offering choice and diversity to customers. While smaller local shops may have a limited selection compared to larger chains, the presence of numerous independent retailers contributes to a wide range of products. The existence of countless independent book and music shops catering to the preferences of their local communities ensures that there is demand for a diverse array of ideas and music. This allows for the availability of controversial books or music from emerging artists, as there is an expectation that there is a market for them in various stores. As the influence of major corporations in production and sales decreases, our choices are increasingly determined by a select few, leading to a decline in options available to us.

The risk to our freedom of choice arises when a small number of buyers from large national chains determine product availability for consumers. This concern applies to most goods, but it is particularly alarming when it affects our ability to choose sources of news, books, music, and other forms of expression. It is crucial that we support local businesses in order to maintain the character of our community. When we think about our favorite restaurant, cafe, or shop, we usually imagine a unique local business. The "Best of" poll published by our local newspaper

provides evidence that supports this trend. These local businesses contribute to the identity of our community; however, we often overlook the fact that their survival depends on us supporting them. Local owners have often invested a significant portion of their savings into their businesses and are deeply committed to the long-term well-being of the community.

Local businesses are important in supporting charitable endeavors and involving themselves in local initiatives, backing diverse causes. While some chain businesses also contribute to their communities, not all local businesses exhibit this behavior. The importance of local businesses is clear as they play a vital role within our community that chains often ignore, while chains often work against the community's interests. Despite these disheartening trends, a counterforce is beginning to emerge.

Over the past six years, more than thirty communities have formed Independent Business Alliances (IBAs), which include local businesses, non-profit organizations, and concerned citizens. The primary objective of these IBAs is to assist local entrepreneurs and prevent independent businesses from being overpowered by chain stores. These alliances collaborate in various areas like group purchasing, joint marketing, public education, and political advocacy. The success achieved by IBAs in different communities nationwide indicates a growing movement towards localization that seeks to challenge corporate dominance. However, lasting progress necessitates a change in mindset. We must proactively plan for the future by implementing regulations that promote the values we desire within our communities.

It is crucial to think about both the immediate advantages and long-term consequences on our communities when we spend money. The individual who wrote this passage is a co-founder of AMIBA, a non-profit organization that provides support to local Independent Business Alliances across

the country.