The Case for Shopping Locally
Studies show that dollars spent at locally-owned businesses feed the local economy much more than dollars spent at those that aren’t.
Written by Jon Whiten
Illustration by Amanda Assadi-Rullow
Your alarm didn’t register in your brain this morning, and you somehow slept way too late. You’re running late for work, and you’re starving. You didn’t even have time to make coffee at home today, much less feed yourself some breakfast. As you head to the PATH station, you have choices: Dunkin’ Donuts, Starbucks, the local bodega, the local upscale cafe. Maybe you’ll pick one based on its position on your route, or how crowded you expect it to be.
But many advocates say that another factor should play a role in your decision: Is this business locally owned?
Let’s say you spend $5 on breakfast and coffee this hypothetical morning. Using figures from studies done in other cities, if you shop at the locally-owned business, $3.40 of that $5 will stay in the community. But if you shop at the non-locally owned chain business, the figure falls to $2.15. And that’s just on your $5 purchase: once you start thinking about how much money changes hands each day at Jersey City’s retail establishments, the individual choices we make start to mean something.
Exact dollar figures for retail transactions in Jersey City are not available, but state data show that so far in 2009, Urban Enterprise Zone (UEZ) certified businesses sold an average of $42.8 million of taxable items each month in the city. The UEZs are areas in urban areas where businesses receive extra incentives to encourage growth. While this $42.8 million barely cracks the surface of retail business in the city; it does make clear that we’re talking about a lot of money here.
A groundbreaking 2004 study done in Chicago’s Andersonville neighborhood showed that “local merchants generate substantially greater economic impact than chain firms.” The study, done by the firm Civic Economics, found that for every $100 spent at a locally-owned business, $68 stayed in the local economy, and that for the same amount spent at a non-local business, only $43 remained in the local economy.



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