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Importance of Buying Local for a Faster Economic Recovery

The current pandemic has negatively impacted nearly all aspects of the economy, including small businesses and startups. According to EntryPoint’s COVID-19 Business Impact Report, much like the rest of the nation, 97% of businesses in the Ann Arbor, MI region have been impacted by COVID-19 and 88% of businesses have less than 25 employees. When business owners were asked how people in the region can support their companies, the answer was to purchase goods and services, whether that was through gift cards, scheduling services or purchasing items online for pickup or delivery. In addition to directly supporting local small businesses and startups, there are broader economic and placemaking benefits to working with your local small business community.

 

Money spent at small businesses stays in the local economy at a higher percentage than money spent at chain retailers.

Only 14% of money spent at chain retailers stays in the local economy, compared to 48% of money spent at independent businesses. Through operations, jobs and community initiatives, money spent at local businesses stays in the local economy, while 86% of money spent at chain retailers leaves the community. Therefore, shopping locally benefits more than just store, as that money is reinvested back into the community, enriching other businesses and consumers alike.

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