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Evidence Base Home » Retail » A vibrant local economy means employment for local residents and more money spent in the local area--economic success is linked to many health outcomes

Articles in A vibrant local economy means employment for local residents and more money spent in the local area; economic success is linked to many health outcomes (see Livelihood section).

  • A study in San Francisco found that every $1 million spent at local bookstores creates $321,000 in additional economic activity in the area, including $119,000 in wages paid to local employees. That same $1 million spent at chain bookstores generates only $188,000 in local economic activity, including $71,000 in local wages. The same type of outcome was true for other businesses. This has been duplicated in Austin, TX; Andersonville in Chicago, IL; and the state of Maine.

    ILSR. The New Rules Project. Institute for Local Self-Reliance. Available at HYPERLINK "http://www.newrules.org/retail/news_slug.php?slugid=360" http://www.newrules.org/retail/news_slug.php?slugid=360.
    Civic Economics. 2007. San Francisco Retail Diversity Study. Civic Economics. SF Locally Owned Merchants Alliance. Available at: HYPERLINK "http://www.civiceconomics.com/SF/SFRDS_May07.pdf" http://www.civiceconomics.com/SF/SFRDS_May07.pdf

  • In studies comparing the impact of locally owned businesses vs. chains, the Institute for Local Self Reliance found that a local business returned 53.3% of it's revenue back to the local economy while a chain returned just 14.1%. The four largest components of local spending were: wages and benefits paid to local employees; goods and services purchased from other local businesses; profits that accrued to local owners; and taxes paid to local and state government.

    ILSR. 2003. HYPERLINK "http://www.newrules.org/retail/midcoaststudy.pdf" The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Midcoast Maine. Institute for Local Self-Reliance and Friends of Midcoast Maine. Available at HYPERLINK "http://www.newrules.org/retail/econimpact.html#1" http://www.newrules.org/retail/econimpact.html#1

  • A series of studies looking at local consumer spending concluded that about 30% of consumer intention to shop locally was explained by their attitudes toward local retail businesses; i.e., they are influenced by a business owner's social, economic, and moral contribution to the community in determining whether or not they will shop locally.

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