Many consumers in Phoenix and throughout the Valley are struggling to make ends meet, while also wanting to support local businesses rather than buying online or through “big box” stores. Today, I wanted to address several important reasons for making a choice to support Phoenix’s local businesses.
- MULTIPLIER EFFECT: Many Valley communities are beginning to feel the impact of losing their local business base. In addition to creating unique character for a community, local businesses also provide very tangible financial benefits. Local businesses utilize local accountants, insurance brokers, computer consultants, contractors, designers, attorneys, ad agencies, etc. When the local business base deteriorates, these supporting businesses also diminish. Local businesses create an economic multiplier effect that is 3 – 3 1/2 times that of a chain outlet.
- KEEPING MONEY IN THE COMMUNITY: According to the Sustainable Business Network of New York City, when you spend $100 locally you are keeping $73 in your local economy. However, when you spend $100 with a non-locally owned business, only $43 stays in your local economy. The rest is exported to a corporate headquarters – and out of the Phoenix economy. That’s a 30% difference – which will obviously, over time, have a significant impact in our local economy.
- GREATER SUPPORT FOR NON-PROFITS: While corporations here in Phoenix do a great deal of charity work, anyone who works in the non-profit sector will tell you that the bread and butter for most non-profits comes from local business support. Statistically, non-profits receive an average of 250% more support from small business owners than they do from large businesses.
- TYPICALLY BETTER SERVICE: Local business owners often hire people who have a better understanding of the products they are selling, and they take the time to train their employees properly. Obviously, we know this isn’t always the case, as we’ve all had bad experiences with local Valley businesses. But, generally, employees for local businesses are better trained and offer better service.
- IT INVESTS IN ENTREPRENEURSHIP: The American economy is founded on the principles of creativity and entrepreneurship. Preserving and nurturing these skills will insure a strong local economy here in Phoenix for years to come.
While it may not be prudent to try to buy everything locally, transitioning a majority of your purchases to local Phoenix businesses benefits everyone within our community, giving the local economy the much-needed boost it needs to thrive.
Until next time,
Tavisha, Go Time Insurance