Top 10 reasons for shopping local in your rural community
We have written many columns in the past on the critical need to shop local, rest assured it isn’t just a feel-good slogan – it’s a crucial economic and social strategy that helps maintain the vitality of small towns and rural areas. Here are the top 10 evidence- based reasons why supporting local businesses in rural communities is essential:
#1 – Studies show the local economic multiplication effect by chopping at locally owned businesses recirculate a far greater percentage of revenue locally compared to chain or online stores. According to research by the Institute for Local Self-Reliance, local retailers return an average of 48% of their revenue to the local economy, com- pared to just 14% for chain retailers and even less for online. In rural communities, this multiplier effect becomes even more critical.
#2 - Small local businesses are collectively the largest employers nationally. In rural areas, they provide 63-67% of employment opportunities, according to the SBA. These jobs are typically more stable during economic downturns, as local businesses are more likely to cut hours than eliminate positions, thus maintaining better community stability.
#3 - Local businesses contribute more in local taxes relative to chain stores and online retailers. A study by Civic Economics found local businesses generate about 70% more local tax revenue per square foot than big box retailers. This revenue is crucial for communities to maintain essential services like schools, emergency services, and infrastructure.
#4 - Shopping local reduces transportation-related carbon emissions. When rural residents shop at local stores, they typically travel shorter distances compared to driving to distant shopping centers. Additionally, local businesses often source products region- ally, reducing shipping distances. The National Transportation Group estimates that shopping local can reduce transportation-related emissions by up to 26% compared to shopping at distant retail centers.
#5 - Community Health and Food Security Local grocery stores and farmers’ markets in rural areas play a vital role in food security. Research from the USDA shows that 40% of rural counties are considered “food deserts,” where access to fresh, healthy food is limited. Local food retailers are more likely to stock locally grown produce and support regional farmers, improving access to fresh, nutritious food while supporting the local agricul-ural economy.
#6 - Local businesses foster community connections and social cohesion. A study in the Journal of Rural Studies found communities with a higher density of local businesses show stronger social networks and civic engagement. Local owners in rural areas are 15-20% more likely to serve on local boards, volunteer, and contribute to local organizations.
#7 - The COVID-19 pandemic demonstrated how local businesses contribute to community resilience during crises. Rural communities with strong local business networks adapted more quickly to changing circumstances, with 76% of local businesses modifying their operations to continue serving their communities, compared to 61% of chain stores.
#8 - Local businesses help maintain the unique character and heritage of rural communities. Studies show that communities with a higher percentage of local businesses attract more tourism dollars, with visitors spending an average of 23% more in areas characterized by unique local businesses rather than chain stores.
#9 - Local businesses are more responsive to local needs and preferences. Research from the Small Business Administration shows that small local businesses introduce more new products and services per employee than large corporations, particularly in rural areas where they can identify and fill specific community needs more effectively.
#10 - When residents shop at locally owned businesses, more money stays within the community. A study by the Federal Reserve Bank of Atlanta found rural communities with strong local business sectors experienced 15-20% less wealth leakage compared to similar communities dominated by chain stores. This retained wealth is critical in small rural towns.
These benefits create a virtuous cycle: as more people shop locally, businesses become more viable, creating more jobs and generating more tax revenue, which in turn supports better community services and infra- structure. This makes the community more attractive to both residents and businesses, further strengthening the local economy. For rural communities facing challenges such as population decline and economic stagnation, sup- porting local businesses isn’t just about preserving mom-and-pop shops – it’s about maintaining the economic and social fabric that keeps these communities viable and vibrant for future generations.
John Newby is a nationally recognized Columnist, Speaker, & Publisher. He consults with Chambers, Communities, Business & Media. This column appears in 60+ newspapers and media outlets. As founder of Truly-Local, he assists chambers, communities, media, and businesses in creating synergies that build vibrant communities. He can be reached at: John@Truly-Local.org.