Being part of a community is essential to our social and mental well-being. The more involved you are, the more benefits you and your community reap. This reciprocal relationship strengthens the community over time. In this series of articles, we’ve been exploring the importance of different community stakeholders; so far we’ve discussed residents and local media. In this third article, we turn our focus to local business—the very heartbeat of our towns and cities.
The Essential Role of Local Business
Ed McMahon from National Main Street Inc. aptly stated, “Downtown is important because it’s the heart and soul of any community. If you don’t have a healthy downtown, you simply don’t have a healthy town.” Local shopping is more than a transaction; it’s an investment in the community.
About 67 cents of every dollar spent at local businesses stays within the community, compared to just 11 cents at multinational chains. This financial retention boosts local jobs, supports community associations and charities, and uplifts overall living standards—making each dollar spent locally a direct investment in our collective future.
Deepening Community Ties Through Local Business
Local businesses are usually more committed to community causes than their larger counterparts, often going above and beyond with significant donations and services when local charities and teams approach them. This mutual support system benefits not only local retailers but also service providers like real estate and insurance agents, enhancing the local economy and strengthening community ties. By providing products, services, or cash with the expectation—and hope—that the community will reciprocate, these businesses fortify local economies and strengthen community ties far beyond main street, encompassing all facets of the local community.
The Untapped Potential of Supporting Local Business
Despite the clear benefits, there’s room for improvement in local shopping habits:
- 73% of Americans express a commitment to enhancing their communities by shopping locally. We wonder what percentage actually do it.
- On average, Americans supported a local small business 11 times over the past year, which translates to less than once per month. Clearly, there’s significant room for growth in our local shopping habits.
- Surprisingly, only about 1 in 5 Americans frequently shop at small businesses. This strikingly low figure prompts us to ask: why the hesitation? The answer might be tied closely to the next observation.
- An overwhelming 81% of people admit they aspire to shop locally but often find the convenience of larger retailers too compelling to resist, including giants like Amazon. This convenience factor plays a pivotal role in shaping consumer behaviour, suggesting a need for local options to enhance their accessibility and appeal.
How Hope Factory Can Help Local Business Thrive
Hope Factory is dedicated to helping local businesses thrive by harnessing the power of consumer (and community!) spending. By linking consumer spending to local businesses through our innovative platform, we create a win-win situation where every transaction benefits both the consumer and the local business. This synergy not only drives economic growth but also fosters a sense of community solidarity and support.
The Broader Impact of Neglecting Local Business
Local businesses employ nearly half of all American workers. With a projected closure of 50,000 retail stores by 2028, the implications are enormous—not just to employment but also to the social and economic fabric of our communities. Sales diverted to larger national retailers weaken local economies, erode community bonds, and undermine local support networks.
Supporting local businesses is more than just a purchasing decision—it’s a commitment to the vitality of our communities. By choosing to shop locally, we contribute to the economic stability and social fabric of our neighbourhoods. It’s not merely a transaction; it’s an investment in making a difference and nurturing the places we call home. Connect with Hope Factory today to see how you can make a difference in your local community. Together, we can nurture the places we call home and ensure they thrive for generations to come.