Campaigns to encourage people to buy locally have become ubiquitous in the last few years. Rather than being a fad without real benefits, the effects of buying locally are actually quite complex. It's not as simple keeping your money in the neighborhood by shopping at a local bookstore instead of a big box retailer. It goes as deep as cutting down on shipping and transportation costs, thus reducing CO2 emissions and helping the environment.

photo by Wholtone CC BY-SA

Obviously, one person making a few local purchases will not reduce the pace of climate change or save a family-owned business, but together neighbors can make a concerted effort that can change the face of their community. And why wouldn't they? A community needs to support itself to continue its prosperity and avoid becoming a ghost town, which was the fate of so many smaller neighborhoods after the most recent recession. If a majority of people in a community decide to buy local whenever possible, here are some of the changes they can expect:

  1. Keeping money in the neighborhood

    On the most basic and obvious level, spending your money locally keeps more money local. There are various numbers in regards to how much, but all sources agree that that a higher percentage of money used at a local independent store stays in the area, as opposed to a big-box retailer. According to the Huffington Post, for every $100 spent at a local business, $68 of that will be used for local economic activity. When that same amount is spent at a big-box retailer, only $48 will be spent within that community.

  2. Support local jobs

    People who work locally generally live locally. If people consistently patronize a local establishment, it will be able to grow and support more employees, creating more jobs in the local area. According to the Census Bureau and the Small Business Administration, approximately 60 million Americans work for small businesses, which makes up over half of the workforce.

  3. Support neighborhood groups

    Many non-profit groups, including youth sports teams, scholarship funds, and charity auctions rely on gifts and donations from locally owned businesses. One study says non-profits receive 250% more support from small businesses than from larger companies.

  4. Reduce environmental impact

    Local businesses often buy products locally, reducing the need for transportation of products and the resulting air pollution. Small business owners are also much more likely to reuse or recycle materials, according to the EPA.

  5. Improve your customer experience

    With a smaller employee size and more specific product line or service, local companies can focus more on their craft. Big-box companies are often broader and don't focus on a specific service. Their workforce, by definition, is often in the thousands, making it harder to guarantee good customer service.

  6. Lower taxes

    Local businesses generate more tax revenue per sales than bigger retail options. They're also more centrally located and more efficient, decreasing the demands put on local infrastructure like roads and sewers.

photo by Neighborhoods.com

Everything is economics is connected: small savings now can create even bigger savings down the road. A local business reusing materials can reduce the use of pollutant materials elsewhere. And investing locally now will create a bigger and more concentrated payoff in the future, whether it's a softball league or a reduction in taxes. Create or build upon your sense of community by investing in it. If a neighborhood sticks together, it improves together.