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Be the change you want to see

Maya Angelou once said, “A leader is one who knows the way, goes the way, and shows the way.” We often hear people say, “I’m just one person—what difference can I really make in my community?” This sentiment grows stronger in larger cities where individual impact feels diluted. Yet history teaches us that transformative change invariably begins with a single person’s vision or a small group’s determination.

While we cannot control economic headwinds, we can adjust our approach to navigate them successfully. By changing our individual purchasing habits, we can create ripple effects that strengthen our communities one transaction at a time.  How do we harness this individual power? Traditional civic engagement—voting,
volunteering with service organizations, staying informed, participating in community cleanups—remains vital and impactful. However, these efforts often feel abstract, their benefits difficult to measure immediately. Let me propose a concrete habit that creates measurable, transformational impact on your local community.

By consciously directing your spending toward locally-owned businesses, you become an economic catalyst. The Institute for Local Self-Reliance’s research demonstrates that every dollar spent at independent, locally-owned businesses generates approximately 2.6 times more local economic activity than dollars spent at chain stores or online retailers. For service businesses, this multiplier effect reaches 3.2 times.

Consider the practical implications of this economic multiplier. In a community of 25,000 residents, if each person redirected just $30 monthly from chain retailers to local businesses, this would inject $9 million annually into the local economy. With the multiplier effect, this becomes $28.8 million in total economic impact. Assuming a 4% local sales tax rate, this generates approximately $1.152 million in new municipal revenue—enough to fund significant infrastructure improvements, enhanced public safety, or expanded community services.

Recent data from the American Independent Business Alliance shows that locally-owned businesses:  Return 52% of each dollar to the local economy versus 14% for chain competitors, generate 16% more jobs per square foot than big-box retailers, contribute 250% more to local nonprofits and community causes and source 24% more goods and services locally, creating secondary economic benefits.

The job creation potential is particularly compelling. Economic development studies indicate that redirecting 10% of household spending to local businesses typically creates 1.6 new jobs per $100,000 in shifted spending. For our hypothetical 50,000-person community, this translates to over 750 new local jobs—positions that cannot be outsourced or eliminated by corporate restructuring.

Entrepreneurial ecosystems flourish when communities support local ownership. Small Business Administration data reveals that communities with strong local business sectors see 23% higher rates of new business formation. These entrepreneurs become tomorrow’s job creators, civic leaders, and community investors. They sponsor local sports teams, donate to schools, and reinvest profits locally rather than sending them to distant corporate headquarters.

The COVID-19 pandemic illustrated the fragility of corporate loyalty to communities. While many national chains permanently closed locations and eliminated local jobs, locally-owned businesses demonstrated remarkable resilience and community commitment. Federal Reserve economic data shows that communities with higher
concentrations of local businesses recovered employment faster and more completely than those dependent on chain retailers.

Today’s economic landscape presents both challenges and opportunities. Supply chain disruptions favor nimble local producers who can adapt quickly. Rising commercial real estate costs in urban areas create opportunities for local entrepreneurs in smaller markets. Remote work trends are redistributing purchasing power from expensive metro areas to smaller communities nationwide.

The demographic trends are equally encouraging. Recent consumer surveys indicate that 73% of millennials and 68% of Gen Z consumers actively prefer to support local businesses when price and convenience are comparable. Social media has democratized marketing, allowing small businesses to compete effectively with corporate advertising budgets.  However, this translates to action only when consumers make conscious choices. Every trip to a locally-owned restaurant instead of a chain, every purchase from an independent retailer rather than an online giant, doing service with a local provider rather than a national company represents a vote for your community’s economic future.

The path forward requires collective individual action. While communities must pursue economic development strategically, citizens must also act strategically as consumers. This means researching local alternatives, accepting that convenience might occasionally be sacrificed for community benefit, and understanding that slightly higher prices often reflect fair wages and local investment rather than
inefficiency.

As Margaret Mead observed, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” Your community’s economic future isn’t determined by distant corporate boardrooms or federal policy alone—it’s shaped by the daily purchasing decisions of people like you.  Start today. 

Choose local. Build your community’s tomorrow, one transaction at a time.

 

John A. Newby is the author of the “Building Main Street, Not Wall Street” column dedicated to helping local communities, government and business combine synergies allowing them to thrive in a world where truly-local is being lost to Amazon and Wall Street chains. His email is john@truly-local.org

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