Together, these ingredients create a robust local economy that is resilient, sustainable, and capable of adapting to change. By using these ten ingredients, communities can create a perfect recipe for long-term economic success.
1. Local Businesses
Local businesses, big and small, are the backbone of a local economy. To start, businesses like Oliver’s Market, Friedman’s Home Improvement, and Poppy Bank Epicenter provide vast employment opportunities. According to the U.S. Chamber of Commerce, “Small businesses employ nearly half of the American workforce and represent 43.5% of America’s GDP” (Melhorn). Job creation is critical for a local economy, but another contribution these businesses make is that they are not only vendors, but also customers, employees, and partners to each other (Melhorn). These local business factors promote job stability, entrepreneurship, and reinvestment towards the local economy through purchases, local bank use, or taxes that support local public services (Roche). This is also called the Local Multiplier Effect.
2. Workforce
A local economy heavily relies on you as a skilled and adaptive workforce. Forbes Magazine states that, “When employees are equipped with relevant skills, they contribute more effectively to their industries, earn higher wages, and stimulate economic mobility” (Mendoza). So, a strong local workforce promotes productivity and fosters local economic growth.
3. Infrastructure
Quality infrastructure–transportation, public safety, and communication systems–is vital for an efficient local economy. Transportation, like railways, airports, and public transit, is essential for daily commuting, commerce, and trade. Thankfully, Sonoma County has the Charles M. Schulz Sonoma County Airport, Sonoma-Marin Area Rail Transit, and Sonoma County Transit. Then, public safety, like fire and police stations, provides local businesses and citizens with a sense of security and contributes to job creation. Finally, having reliable communication through phone lines and the internet is crucial since businesses are consistently communicating with each other, their employees, or customers through these systems. Consider using a local GO LOCAL member business like SR Technologies - Managed IT Services – a great team to facilitate your business operations.
4. Community Engagement
Engaged citizens support local businesses, which benefits their local economy, and represent their interests, which leads to a more vibrant and unique community. Fintech News writes that, “Community engagement serves as a critical catalyst for economic growth. Through active participation, residents can directly contribute to the economic vibrancy of their community” (Fintech News). When residents participate in local organizations and events, it fosters community spirit and encourages a collective investment in the local economy.
5. Local Markets
Local markets contribute to the Local Multiplier Effect and boost job creation. An article titled “Local Markets: Impact on Economy” by The Farmer Insider dives into this topic and says, “Local markets provide employment opportunities for individuals, particularly in the informal sector, thereby reducing unemployment rates and poverty” (Guide). In addition to this, Farmers Insider writes how local markets promote entrepreneurship and help preserve the area’s traditional crafts or cultural heritage (Guide). Needless to say that this unique local market charm also promotes tourism and therefore uplifts the economy. Sonoma County is no stranger to local markets as it is the host of GO LOCAL members, The Soco Market and Agricultural Community Events Farmers’ Market!
6. Financial Institutions
Your choice to bank locally is one of the highest impact decisions you can make. Local banks and credit unions provide funding and support to businesses and individuals within the community. These financial institutions, like Exchange Bank or Redwood Credit Union, are low-fee establishments that cater to local businesses and personal needs. They understand the community's unique needs and can offer personalized services and tailored financial plans that help keep local stores in business. For more information on local banking and its benefits, take a look at GO LOCAL’s “Why Bank Local” article.
7. Education and Training
Access to vocational training programs and educational tools that enhance the local workforce’s skills is vital for economic sustainability. Education and Academy’s article, “Top 7 Reasons Why Vocational Training is Essential Today,” says that, “Investing in vocational training contributes not only to individual success but also to the economic health of communities…By filling skill gaps, vocational training helps lower unemployment rates” (Ahmed). Then, education attracts businesses looking for skilled workers to employ! So, by equipping residents with various skills, communities are better prepared for the challenges of a changing job market. That is why The Lime Foundation, which specializes in construction trades, the arts, and technology, is such a crucial pillar for the community. The Sonoma County Library provides free access to computers, audiobooks, and books, which can come in handy for those preparing to enter a vocational school or educating themselves for a specific career.
8. Government Support
Local policies and regulations that promote business development, provide incentives, and support entrepreneurship through grants or resources are necessary for a local economy to thrive. A great example of this is the Sonoma County Economic Development Collaborative, which is a government-run establishment dedicated to boosting the economy through its initiatives and services. For example, they’ve provided a Small Business Stabilization Grant to 542 Sonoma County businesses in 2020 and developed the Creative Sonoma program, which supports the local creative community through grants, funding, and arts education (Sonoma County Economic Development Collaborative).
9. Technology
If new technologies are applied to our local stores, then owners will be able to boost sales, learn more about their unique customers, and potentially ease their daily operations. ProTRACKPlus, a company dedicated to developing technology for businesses, wrote an article named “Navigating the Role of Technology in Local Economies,” and states that “Digital transformation has a profound impact on local economies…it can help local businesses become more competitive, increase their productivity, and expand their market reach” (ProTRACKPlus). So, a local economy that welcomes new technologies will excel. That’s why services from innovative companies like GO LOCAL member The City POS, a digital payment processing tool, are important for our local economy’s ecosystem.
10. Recreational Spaces
Recreational spaces increase the quality of life and attract tourism, which encourages local spending. Indeed, recreational spaces uplift the economy by increasing property values and sales (Yuvallos). Yes, according to Sustainability Solutions Exchange, “...the value of properties near outdoor spaces, parks, and trails are higher by about five percent than those in surrounding areas…” and, “...As more people (and by extension, consumers) move closer to community spaces, enterprises around the area can expect a rise in revenue” (Yuvallos). When tourists research a destination, they’re more likely to visit an area with diverse recreational spaces (Yuvallos). This is great for Sonoma County since we have spaces like SOMO Village, Sonoma County Regional Parks, and Barn 5400, which means our community has plentiful recreational options for tourists to visit and spend locally.
Works Cited
Ahmed, Zain. “Top 7 Reasons Why Vocational Training Is Essential Today.” Education And Academy, 17 Dec. 2024, educationandacademy.com/top-7-reasons-why-vocational-training-is-essential-today/.
Fintech News. “Driving Economic Growth through Community Engagement.” Fintech News, 20 June 2023, www.fintechnews.org/driving-economic-growth-through-community-engagement/.
Guide, Agri. “Local Markets: Impact on Economy.” The Farming Insider, 25 Jan. 2024, thefarminginsider.com/local-markets-impact-on-economy/.
Melhorn, Stephanie Ferguson, et al. “See the Data behind America’s Small Businesses.” See the Data behind America’s Small Businesses. | U.S. Chamber of Commerce, U.S. Chamber of Commerce, 28 Jan. 2025, www.uschamber.com/small-business/small-business-data-center.
Mendoza, Jessica. “How Workforce Development Boosts Career and Economic Growth.” Forbes, Forbes Magazine, 31 Jan. 2025, www.forbes.com/sites/jessicamendoza1/2025/01/31/how-workforce-development-boosts-career-and-economic-growth/.
ProTRACKPlus. “Navigating the Role of Technology in Local Economies.” ProTRACKPlus, 2024, myprotrackplus.com/navigating-the-role-of-technology-in-local-economies/.
Roche, Caleb. “The Importance of Supporting Local Businesses: Benefits to the Economy: The Small Business List: The Best List of Small Businesses.” The Small Business List, The Small Business List, 4 Sept. 2024, www.thesmallbusinesslist.com/our-blog/the-importance-of-supporting-local-businesses-benefits-to-the-economy.
Sonoma County Economic Development Collaborative. “Grant Program.” Economic Development Collaborative, 2020, sonomaedc.org/business-services/soco-launch/grant-program.
Yuvallos, Andrei, and Kleo Catienza. “The Importance of Community Spaces to the Ecosystem and the Economy.” Sustainability Solutions Exchange, 22 Mar. 2022, sustainability.ph/news-articles/the-ecological-and-economic-benefits-of-community-spaces.