Research

Boosting the local economy
Buy local. Though certainly not a new idea, supporting local businesses has received a push from a national movement of independent business owners that have formed Independent We Stand to educate their communities on the benefits of shopping at neighborhood stores. Independent We Stand is funded in part by STIHL.

The movement uses recent surveys to break down the benefits of buying from local businesses. According to the group:

If you spend $100 at an independent business, $68 returns to the local community. Spending the same amount at a national chain equates to $43 back to the community.

Small businesses create 75 percent of all new jobs and half the non-farm private gross domestic product.

Locally owned businesses reinvest in its communities economy at a 60 percent higher rate than chains and Internet retailers.

Locally owned and operated businesses provide higher-paying jobs.

Finally, more tax dollars are reinvested in the community to fund essentials such as schools, fire and police and road improvements.

“This project began as a way to inform friends and neighbors on one of the best ways to revive our economy: buy local,” says Bill Brunelle, spokesperson for Independent We Stand.

“Buying products and services from people who work and live in your town means more money goes back to your local area,” he says.

Business owners cautious of future
A quarterly survey by Citigroup found that 85 percent of small-business owners are worried about a double-dip recession.  If any solace can be found in that number, it is that 75 percent polled said they are very or somewhat prepared for another downturn, an indication of small-business owners’ ability to adapt to the challenges presented during the recent recession.

The results of the most recent survey mirrored the ones from previous quarters, with 76 percent of small-business owners rating the current business climate as fair or poor.

However, optimism continues to rise with an increasing percentage of owners calling current conditions fair. Of those polled, 28 percent said their business was better off today than last year and 42 percent expect business to improve in 12 months. A growing number of owners – up 5 percent to 45 percent – say they expect conditions to remain the same in the next year.