Five Reasons to GO LOCAL: Updated

Keeps Money Local

Spending locally means money is reinvested into the local economy and prevents the consequences that large companies bring.

Reinvest your Dollars: A huge benefit of shopping locally is that it keeps money within the community. A 2024 study states that “68% or $68 out of every $100 spent at local stores remains in the local economy,” and, “Dollars spent at an independent business may recirculate in the local economy an average of six to 15 times” (Capital One). A 2022 study showed that locally owned businesses recirculate 48% of their revenue back into the local economy (AMIBA) –a large and notable percentage. This is in stark contrast to the mega-retailers/large chain companies that only recirculate 13.6% (AMIBA) of their revenue back into their host community. While studies vary on the details, it is clear that shopping locally increases the money that stays local.
How it works: This is called the Local Multiplier Effect which the American Independent Business Alliance explains as a cycle in a 2024 article, “Your dollars recirculate through your local economy 2-4 times more than money spent at a non-local company. As your dollars move through your community, the money generates more local wealth, charitable contributions, and jobs.” (Risley)

Homegrown Wealth: Where You Shop Matters

The Downside of Shopping at Big-Box Stores: Public education suffers most drastically from budgetary reshuffling that comes with national and global chain retail and vulnerable low-income populations are afforded the smallest gains (Holder). According to a 2018 interview between Sarah Holder and Timothy J. Bartik–an economist from the W. E. Upjohn Institute–in Bloomberg News, large company, “...incentives [offered by cities and states to large corporations] do indeed have benefits for local economic development in the short term, negative effects begin compounding as soon as 22 years into an agreement” (Holder).
Save Local Gems: Also, shopping at mega-retailers can cause a domino effect that leads to the closure of precious local stores. Good Jobs First–an organization dedicated to reporting corporate welfare and misconduct–conducted a study in 2022 and found that “The business models of big-box chains are to dominate market share. That is, they grow mostly at the expense of existing competitors, many of them locally owned independent businesses…In towns and cities across America, big-box retailers have been the death knell for local businesses. Iowa State economist Kenneth Stone, for example, has produced numerous studies looking at the long-term impact of Walmart on Iowa retailers” (Good Jobs First).
Bank Locally: Using your local bank comes with more flexibility and benefits than when opting for a national/multinational bank. A money management article written by Bank of The James–a local Virginian bank–in 2023 states that “Smaller banks can offer more flexible loans, especially in the cases of small businesses (as local banks are small businesses themselves). Community banks can offer more commercial loans than big banks…And rates on car loans may be cheaper, too. As of 2011, they held 14 percent of banking industry assets, but held 46 percent of the industry’s small loans to farms and businesses, according to the FDIC report issued in December 2012” (Bank of The James).
Insure Locally: Using local insurance also has similar benefits to local banking. In fact, Midwest Bank wrote an article titled “Benefits of Choosing a Local Insurance Agency vs. a National Chain” in 2024 stating that “Small insurance agencies…understand local risks better than a national agency headquartered across the country. For instance, if you live in an area prone to tornadoes, flooding, or wildfires, a local agent will have first-hand knowledge of those challenges…” (Wolfe). Even more, Midwest Bank also found that “...small agencies are often more adept at finding hidden discounts or bundling options that national companies might not advertise. Whether it’s a multi-policy discount for bundling home and auto insurance, or special discounts for safe driving and home safety features, a local agent will take the time to maximize your savings. (Wolfe). All in all, it seems that financial services can be better satisfied using local businesses.

Help Save Your Planet

Join the fight for our planet and protect your environment, land, and wildlife.

Reduce Carbon Footprint: Shopping locally reduces your carbon footprint in many different ways. For one, it reduces your “food miles.” BBC News defines food miles in a 2024 article titled, “What are Food Miles and Why are they Important?” as “...the distance food has traveled to get to your plate. Food must travel from the farm it is grown on or the factory it is made in, to a supermarket or shop to be sold” (BBC News). Large chain stores often have to: travel by vehicle or airplane, use shipping or packing facilities, and refrigeration. All of which create large carbon footprints and therefore pollution. On the other hand, local businesses grow and create their products locally, and reduce this carbon footprint largely.
Protect Habitat & Wildlife: Another reason to buy locally is that local stores/services do not destroy the environment as big-box stores do. For example, a journalist named Jane Marsh wrote an article in 2020 entitled “8 Companies Facing Environmental Issues in 2024” for Environment.co–a company that reports on climate policy, renewable energy, and conservation–and stated that, “Ikea consumes more wood than any other company — 1% of the world’s wood” (Marsh). This would come out to around 17.8 million cubic yards of wood and the destruction of 17.8 million cubic yards of habitat that wildlife resides in.
Save Natural Spaces: Also, according to Good Jobs First, when mega-retailers “...locate in farmland, wetlands, or green space, they eliminate natural resources and open space. According to the American Farmland Trust, the United States loses 3,000 acres of productive farmland to sprawl every day. This is the equivalent of all the acreage of Delaware every year” (Good Jobs First). In contrast, local businesses do not require this much land or devastation and even tend to buy/rent locations already built within the community.

Job Creation

Need more employment opportunities? Shop locally!

Job Growth: One of the best reasons for shopping locally is that local businesses are job creators. Yes, the U.S. Small Business Administration Office of Advocacy, and their 2022 study titled “Small Business Facts: Small Business Job Creation,” states that, “Small businesses have accounted for 2 out of every 3 jobs added in the past 25 years” (Wilmoth).
Advance within Sonoma County: Local businesses offer a variety of opportunities from entry-level to management positions. Merith Weisman, Director of Sonoma County GO LOCAL says, “I keep meeting [GO LOCAL] members who have bought the business from the previous owner. Hard to imagine that at a big box [retailer].”
Effects of Mega-Retailers: Although we see initial benefits, large companies negatively impact communities in the long term by increasing competition for jobs and resources. A 2018 article by Bloomberg News details how the consequence of hosting large companies snowballs., “In the short term, an estimated two-thirds of the jobs are filled locally, and a third from out-of-state (or city) migrants. In the long run, however, the vast majority of the jobs created aren’t locally sourced: 85 percent of the jobs end up increasing the population via in-migration of workers, while only 15 percent increase the employment rates of local residents” (Holder).
Supporting Local Businesses = Employment: Job growth by local and small businesses relies on the support of local customers. According to the U.S. Small Business Administration Office of Advocacy, “...small business employment grew rapidly after the recession [2020]...In the second quarter of 2021, the most recent quarter for which data are available, small business employment grew by 939,000” (Wilmoth). This displays the large job growth caused by the financial support of local consumers.

Cultivates Community: Spend locally and buy community spirit.

Spending locally cultivates community spirit

Unique: When you support local businesses you’re also investing in your community’s unique character and diversity. When local vendors/services include local culture, then they create a familiar appeal. This is a quality large corporations or chain stores can’t replicate. This unique identity boosts tourism by creating “must-see” establishments, attracting new residents, and promoting local pride.

Relationships: Notably, the Better Business Bureau stated in 2021 that, “Unlike large chain businesses, small business owners are members of the community and, as such, form more meaningful relationships with their customers. Communities take pride in their unique culture and identity, and they appreciate local businesses that they feel personally invested in as customers and employees” (Better Business Bureau).

Sense of Place: Local businesses create a sense of place, so shoppers feel more interconnected, social, and included compared to the experience of shopping in a big-box store where nothing is personalized. In a 2018 study performed through The University of North Carolina at Greensboro, this familiar feeling–which local businesses provide–has an official term called a sense of place. A sense of place is impactful on locals, because “…they are more attractive to consumers when compared to big-box retailers built on large tracts of land in suburbia. The historic buildings and unique surroundings of downtowns are often in stark contrast to the “nowhere syndrome” of suburban shopping environments” (Wilson 9-10). Take dining at Mary’s Pizza Shack for example. Mary’s is a locally owned restaurant chain in Santa Rosa that provides a family-friendly and comforting ambiance. Even more, one of their locations is in downtown Santa Rosa which provides a scenic view of the revitalized square and its various local shopping opportunities like Treehorn Book store, Land and Water Coffee, or even Noble Folk Ice Cream & Pie Bar. All of which offer a sense of place or belonging.

Shopping just became social

By frequently connecting with these businesses, shopping becomes a hobby rather than a chore, not to mention that while you build personal connections, then you create a social activity out of shopping locally instead of robotically purchasing from a large corporation.
The U.S. National Library of Medicine performed a study on this effect in 2019 and found that, “In unassuming neighborhood locales, such as coffee shops, hair salons, and malls, people meet to socialize, express themselves, and support one another. These ‘third places’ enrich social interaction, sense of community, and belonging outside of the home and workplace” (Finlay 1).

Nurture Business Diversity

If you want more options, variety, or character, then shop locally!

When you support local businesses, you get to see new and creative ideas that match what people in the community actually want. This makes local spending exciting and worth it!
Local Businesses Know Their Audience: Local retailers do a better job at providing products and pricing that their customers want. An organization called Sustainable Connections, which advocates for regenerative economies, explains in their 2025 article titled “Why Buy Local” how small businesses focus on selecting products based on their personal interests and the preferences of their local consumers instead of following a national sales strategy. This can provide diversity of product options and price points (Sustainable Connections).
Attracts New Residents: The best part about this diversity is that it often attracts innovators and skilled workers who seek a vibrant community to invest in. They “...are more likely to invest and settle in communities that promote their one-of-a-kind businesses and distinctive character. This also means a better use of community space” (Sustainable Connections). This attraction only serves to benefit the local economy since these innovators then contribute to the Local Multiplier Effect.
As a result of this diversity, the local economy thrives and becomes more dynamic, which ultimately benefits everyone involved.

Works Cited

AMIBA. “The Local Multiplier Effect.” AMIBA, 5 Dec. 2022, amiba.net/project/local-multiplier-effect/.

Bank of the James. “7 Key Benefits of Banking Locally.” Bank of the James, 23 Mar. 2023, www.bankofthejames.bank/articles/7-key-benefits-of-banking-locally/.

BBC News. “What Are Food Miles and Why Are They Important?” BBC Bitesize, BBC, 16 July 2024, www.bbc.co.uk/bitesize/articles/zjnxwnb#zg7jh4j.

Better Business Bureau. “BBB Business Tip: 5 Ways Local Businesses Can Make a Positive Community Impact.” Better Business Bureau, 7 July 2021, www.bbb.org/article/business/24529-bbb-business-tip-5-ways-local-businesses-can-make-a-positive-community-impact.

Capital One. “Shopping Local Statistics (2024): Benefits of Buying & Supporting.” Capital One Shopping Research, 6 Nov. 2024, capitaloneshopping.com/research/shopping-local-statistics/.

Finlay, Jessica, et al. “Closure of ‘Third Places’? Exploring Potential Consequences for Collective Health and Wellbeing.” Health & Place, U.S. National Library of Medicine, Nov. 2019, pmc.ncbi.nlm.nih.gov/articles/PMC6934089/.

Good Jobs First. “Harms of Big Box Retail.” Good Jobs First, 8 Dec. 2022, goodjobsfirst.org/harms-big-box-retail/.

Holder, Sarah. “The Real Cost of Luring Big Companies to Town - Bloomberg.” The Real Cost of Luring Big Companies to Town, 29 Mar. 2018, www.bloomberg.com/news/articles/2018-03-29/the-real-cost-of-luring-big-companies-to-town.

Marsh, Jane. “7 Companies Facing Environmental Issues.” Environment Co, 27 Mar. 2024, environment.co/companies-facing-environmental-issues/.

Risley, Jen. “The Local Multiplier Effect.” AMIBA, 26 Aug. 2024, amiba.net/local-multiplier/.

Sustainable Connections. “Why Buy Local?” Sustainable Connections, 2025, sustainableconnections.org/why-buy-local/.

Wilmoth, Daniel. “Small Business Facts: Small Business Job Creation.” U.S. Small Business Administration Office of Advocacy, Apr. 2022, Small Business Facts: Small Business Job Creation

Wilson, Jennifer L. Shopping Locally: An Exploration of Motivations and Meanings in the Context of a Revitalized Downtown, The University of North Carolina at Greensboro, United States -- North Carolina, 2018. ProQuest, https://sonoma.idm.oclc.org/login?qurl=https%3A%2F%2Fwww.proquest.com%2Fdissertations-theses%2Fshopping-locally-exploration-motivations-meanings%2Fdocview%2F2115214502%2Fse-2%3Faccountid%3D13949.

Wolfe, Samantha. “Benefits of Choosing a Local Insurance Agency vs a National Chain.” Midwest Bank, 10 Oct. 2024, midwest.bank/news/2024/10/benefits-of-choosing-a-local-insurance-agency-vs-a-national-chain/.