Photo of Solano Avenue, facing east from San Pablo in Albany, CA.

In a recent study* which compared ten locally owned restaurants, retail stores, and service providers to chains offering the same, the research found that spending $100 at one of the neighborhood’s independent businesses created $68 in additional local economic activity, while spending $100 at a chain produced only $43

 Reasons Why Local Retailers Are Superior: 

•Locally owned businesses spend a greater proportion of their income on local labor (29 vs. 23 percent), because of on-site managements as opposed to corporate headquarters making hiring decisions.

•Local sellers spend more than twice as a chain in the community because they are using the local bank, hiring local professionals like designers, accountants, and buying products from other local firms.

•As the owner lives in the area, his or her profits will remain in the local community.

•Local retailers donate more to local charities and community organizations

*(Civic Economics, The Andersonville Study of Retail Economics, 2004)


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