Lately, we’ve been talking a lot about how you can make a difference during the holiday season – from making more sustainable choices, to purchasing gifts that give back, to shopping small business. And while most of us know that shopping at small businesses is a good thing, we may not entirely know why.
Here are a few of the key reasons why shopping small business is so important:
Boosts Your Local Economy
Buying from small, local businesses boosts the economy in smaller towns, and creates job opportunities in places that need it. In fact, small business job growth is huge: Over the past decade, small businesses have generated over 63 percent of the net new jobs available in the United States, and currently employ almost half of the nation’s workforce. Because small businesses are more likely to purchase their products from domestic manufacturers, by shopping local, you are supporting jobs not just in your own community, but in small towns across the country.
In addition, when you shop at small businesses, you are investing in your local community. When you shop at small businesses, around 68 percent of what you spend will stay in your local economy, versus the 43 percent that stays local when you shop elsewhere. If residents of an “average” American city shifted 10 percent of their spending to local businesses, it would mean an influx of over $235 million into that community’s local economy. Imagine what a difference that would make!
Takes a Stand for Human Rights
When you buy locally, you can take steps to make sure that the products you are buying are not being made by exploited or abused workers. You can ask questions about whether or not small business products were made locally, and where exactly they were made. In addition, 85 percent of small business owners pay all of their employees more than the minimum wage, so it is more likely that you will be supporting fair wages when you shop local. In a recent poll, two out of three small business owners supported increasing the federal minimum wage, as well as readjusting it yearly to keep up with increased cost of living.
On the flipside, shopping small means you won’t be supporting large corporations like Walmart. When you shop at these large corporations, it’s very possible that you will be purchasing products that were made in inhumane conditions, where workers are overworked and underpaid, and sometimes forced to work in unsafe conditions. Walmart employees themselves are overworked and underpaid, so much so that this year, workers protested against the corporation on Black Friday, the biggest shopping day of the year. The union-backed labor campaign OUR Walmart launched a nationwide strike against the corporation, asserting that they aren’t paid enough to make ends meet. Their demands are simple and fair: they want the option of consistent, full-time work and a wage of $15/hour. These negative working conditions aren’t exclusive to Walmart; large corporations are more likely to pay their workers less than small businesses.
Has a Positive Environmental Impact
Small businesses have “a deep connection to their communities’ and environments’ needs, and therefore often have an incentive to be good stewards of their surrounding environment.” Because locally-owned businesses generally make their own purchases locally (or at least domestically) as well, they have less of a negative environmental impact when transporting their goods. On the other hand, large corporations almost always get their goods from further away. This means that they frequently rely on aircraft transport, which has greater fuel consumption and greenhouse-gas emissions per mile than any other mode of transport.
Large food corporations also commonly use a great deal more (non-recyclable!) packaging than small farms and grocery stores. Every single day, the average American produces over four pounds of waste, much of which comes from food packaging. By buying food from your local grocery store, you can opt for foods with less packaging and therefore, create less waste.
Builds Your Local Community
Local business owners are often more invested in your community’s future. So when you support them, you’re investing in the prosperity of your city. Throughout the United States, only about 34 percent of the revenue from national chains is reinvested into the community, versus 65 percent from local businesses. This means that almost double the amount of the money that you spend at small, local businesses goes directly back into your community. Small businesses are also much more likely to give back, donating 250 percent more to local non-profit organizations and community causes than large corporations.
Beyond their economic contributions, small businesses also support and foster a sense of community that large corporations simply cannot. Small business owners connect and work with one another, and are much more likely to actually care about their customers and the products that they are selling them. Because of this, customer service is often stronger at small businesses. For us, and many others, shopping small business tends to be a much friendlier and higher quality experience.
If you want to take a step further, you can shop at small businesses that are focused on social impact – we provide some great examples in our holiday gift guide.
So when you’re finishing up your gift shopping this holiday season, keep this in mind: shopping small business is worth it, for the environment, the economy, and your local community.