Encouraging job growth in our local communities

The trend of national chains, superstores and online shopping - all displacing locally-owned independent businesses - prevails in small towns as well as in big bustling cities.

Per the American Independent Business Alliance, a national non-profit organization helping communities launch and successfully operate an Independent Business Alliance® (IBA), the disappearance of local businesses leaves an obvious social and economic void - even when it goes unmeasured, and a community's quality of life changes in ways that macroeconomics is slow to measure, if at all. At the same time, in many communities people complain about losing a sense of place and local character.

While local public officials, time and again, fall for the temptations and political appeal of national chains, they often fail to consider the greater and real losses to the community that occur when the local business base is undermined.

Shopping local is green and keeps independent businesses thriving in their communities. Locally owned businesses reduce negative environmental impact by making more local purchases from suppliers and service providers, and, therefore, require less transportation. Also, businesses, retail, restaurants, and other, generally set up shop in town or city centers, where access is easy by public transportation, walking or other commute forms. This generally reduces carbon emissions, contributes less pollution, and alleviates sprawl, congestion, and wildlife or plant habitat loss.

To examine the Economic Value of independent businesses, researchers look at employment, dollars spent, product choice and merchandize diversity for a particular locale, community involvement, and maintaining local character.

Community-based merchants create a multiple effect in the local economy by employing an array of accompanying local services and by hiring local workers in all business functions, such as architects, designers, cabinet shops, sign makers, and contractors or remodelers. They also employ local accountants, insurance brokers, computer specialists, graphic designers, attorneys, advertising agencies, and more. In out-of-the-area headquartered businesses, major corporate functions like strategy, marketing, finance, legal, technology, information management, warehousing, corporate customer service, etc. are not local.

Locally owned businesses also carry a higher percentage of locally-produced goods than chains, which mean more business for other local producers. This also promotes self-sufficiency and less dependency on imports.

According to the Andersonville Study by the Civic Economics group, for every $100 a consumer spends: locally owned businesses give back $68 to the local economy vs. chain stores which only give back $43.

HomeTown Peninsula, a San Francisco Bay Area peninsula-wide alliance of locally owned, independent businesses and supporters, works to promote the success of local businesses through education, networking, shared resources and group branding. The non-profit organization encourages a “hometown” quality of life by promoting community values of uniqueness and diversity, caring and sharing, in support of a vibrant local economy. HomeTown Peninsula has hundreds of members and it brings public awareness to the following:

Most new jobs are provided by local businesses: small local businesses are collectively the largest employer nationally.

Local business owners invest in their community: the owners live in this community, are less likely to leave, and are more invested in the community’s future. Local owners, typically having invested much of their
life savings in their businesses, have a natural interest in the community's long-term health. On the other hand, chain-owned or online store's profits are exported to corporate headquarters, outside the area.

Local non-profit organizations receive greater support from local business owners, an average 350% more than they do from non-locally owned businesses.

Another view is service to customers: local businesses often hire people with more specific product expertise and many have long-term employees.

Analysis of the positive economic impacts of locally owned retail businesses on the city of San Francisco found out the following:

1. Consumers in San Francisco can shape their city’s future through their buying decisions: have city-wide thriving commercial neighborhoods or strip malls.
2.  A 10% shift in consumer spending, from chains and internet to locally owned retail, would create nearly 1300 new jobs and over $190 million in increased economic output for San Francisco. Consumers don’t have to spend more, just spend differently.
3. Locally owned merchants in San Francisco have significant strength in several retail categories, and their contributions to the economy of the city are substantial. They also provide incredible retail diversity and local charm, two reasons so many people want to live and visit here.
4. Locally owned businesses reinvest in the local economy at a 60% higher rate than chain and internet retailers.
5. City leaders and policy makers can encourage local businesses through zoning and permit procedures, business subsidies, and city purchases.

There are other aspects to ‘Shop Local’ besides tax dollars and jobs: consider what drew you in the first place to the neighborhood or city you reside in; what is the type of community you want to live in? Do we want to preserve our community’s one-of-a-kind businesses and distinctive character? Are we interested living in a city or town that has chains that are run by ever-rotating managers rather than long-time owners who know many customers by name?

And last, do we want our locally owned independent businesses to survive?

Resources: Hometown Peninsula

Photo: www.ournewhaven.org.uk

Crossroad image from green.sympatico.msn.ca    

 JOB LEADS, TRAINING and SERVICES for Veterans

1. Acterra’s job listings site - List of job openings that Acterra has received from local environmental organizations.

Acterra, a prominent non-profit environmental organization in Palo Alto, CA, was founded in 2000 by the merger of two of the region's most respected and effective environmental organizations: the Peninsula Conservation Center Foundation (founded in 1970) and Bay Area Action (formed in 1990). Acterra’s history of innovation and partnership enables the organization to draw on the wisdom and experience of two generations of environmental leaders. Acterra has several programs with the mission to bring people together to create local solutions for a healthy planet.

2. GreenBiz.com™ jobs website.

Launched in 2000, GreenBiz.com™ Business Voice of the Green Economy aims to provide clear, concise, accurate, and balanced information, resources, and learning opportunities to help companies of all sizes and sectors integrate environmental responsibility into their operations in a manner that supports profitable business practices.

Send me feedback, Green career tips, training suggestions or job openings and I will share them.

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