American Independent Business Alliance co-founder Jeff Milchen reached out to me and shared some research that helps define the numbers and statistics we use when we talk about small businesses keeping money in the local economy. Today I’ll share some of those results and links to more information. The following was taken from AMIBA website and the link follows.
Averaged across the 10 communities in the retail studies, spending at indie retailers generates 3.7 times more direct local economic benefit than spending at chains.
Civic Economics analyzed annual reports for four major national chain stores (Barnes & Noble, Home Depot, Office Max, and Target) for comparison. These stores are estimated to recirculate an average of 13.6% of all revenue within the local markets.
Among the five studies, spending at indie restaurants generated an average of 2.15 times more direct local economic return
Civic Economics analyzed public reports from Darden, McDonald’s, and PF Chang’s to project local procurement percentages for chain restaurants. These eateries were estimated to recirculate an average of 30.4% of revenue within the local market. The multiplier is higher with restaurants than retailers largely because local labor costs comprise a higher portion of overall operating expenses. Also, local restaurateurs often can source significant portions of their fare locally — something not possible for many retailers.
There is also a wealth of information available at Civic Economics, just click here.
Finally – sign up for AMIBA’S enewsletter free. You can read November’s letter here, and sign up on the same page over on the right hand side. (all images on this page came from AMIBA.)
Excuse me now while I go do some more research ….. love when I get emails that lead me on the path to more, accurate information!