Think Local First | DC Locals Mean Business!

Economic Studies

Procurement Matters

Local First Arizona in partnership Civic Economics: Local office products company in Arizona generates nearly three times the economic impact in Arizona as out-of-state competitor.

Local Works! Examining the impact of local businesses on the West Michigan economy

Local First in Grand Rapids, Michigan in partnership with Civic Economics: In western Michigan, a 10% shift of spending from chains to locally-owned businesses would create nearly $140 million in new economic activity, add over 1600 new jobs to the area, and provide over $50 million in new wages. View the complete study here.

Thinking Outside the Box: A Report on Independent Merchants and the New Orleans Economy

The Urban Conservancy in partnership with Civic Economics: A 2009 study in New Orleans finds that shifting 10% of spending from chains to locally-owned businesses would create hundreds of new jobs and have the
equivalent of injecting $60 Million annually in the form of re-circulating currency.

San Francisco Retail Diversity Study

SFLOMA & Civic Economics: A 2007 study in San Francisco analyzes the market share of several categories to find out what percentage is held by chains or locally-owned businesses. It then calculates that if 10% of
spending were shifted from chains to locals it would increase economic output by almost $192 Million, create almost 1300 new jobs, provide almost $72 Million in new income for workers, and create over $15 Million in additional retail activity.

Andersonville Study of Retail Economics

Civic Economics: A 2004 study (an extension of the Economic Impact study in Austin, 2002) compares the economic impact of ten Andersonville businesses and their chain competitors and finds that for every $100 in consumer spending with a local firm, $68 remains in the Chicago economy whereas for every $100 in consumer spending with a chain firm, $43 remains in the Chicago economy. The study also states that great care must be taken to ensure that public policy decisions do not inadvertently disadvantage locally owned businesses. Indeed, it may be in the best interests of communities to institute policies that directly protect them.

The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Midcoast Maine

Institute for Local Self-Reliance and Friends of Midcoast Maine: A 2003 study in Maine found that when residents of the Midcoast region spend $100 at a big box retailer, their purchase generates $14 in local spending by the retailer. That same $100 spent at a locally owned business generates $45 in local spending, or three times as much. Dollars spent at a local retailer support not only that store, but a variety of other local businesses, including local banks, accountants, printers, and internet service providers.

Economic Impact study

Civic Economics: A 2002 study in Austin found that for every $100 spent at a chain bookstore, the economic impact was $13, whereas when spent with a local bookstore the economic impact was $45. It also shows that local merchants spend a much larger portion of total revenue on local labor to run the enterprise and sell the merchandise, keep their modest profitsin the local economy, and provide strong support for local artists and authors, creating further local economic impact.