Spend Your Money Locally

buylocalfirstIt’s no secret that spending your money at local businesses benefits the community. When speaking with representatives from Corvallis area coffee shops like Coffee Culture, Allann Brothers, and Dutch Brothers, the consensus was they all care deeply about keeping their dollars in our local community.

According to the Corvallis Independent Business Alliance (CIBA), local, independent businesses assist the community through a “multiplier effect.” A dollar spent at a locally owned business can return five times that amount within the community through city taxes, employees’ wages, and the ability to buy supplies and materials at other independent businesses. That same dollar could also benefit the community through school funding, social services, and contributions to other local non-profit organizations.

Additionally, a study conducted by Civic Economics in 2009 examined financial data from 15 local businesses in New Orleans and looked at their impact on the local economy when compared with an average Super Target store. This study revealed that only 16% of the money spent at these Target stores remained in the local economy. By contrast, the local business returned more than 32% of revenue to the local economy.

The main difference in this case was the local stores were purchasing goods and services from other local businesses, whereas Target, like most chain franchises, does not. So even moderate spending in the local community can go a long way beyond just goods and services.

by Patrick Fancher