For the fourth year in a row, a national survey of independent businesses has found that those in communities with an active "buy local" campaign have experienced markedly stronger revenue growth compared to those located in areas without such a campaign. (Download the report [1].)

The survey, which was conducted over an 8-day period in January, gathered data from 2,768 independent businesses, including retailers, service providers, restaurants and others. It found that those in places with a "buy local" initiative reported revenue growth of 5.6% on average in 2010, compared to 2.1% for those elsewhere.

Among independent retailers, which accounted for nearly half the respondents, there was a similar gap in holiday sales performance, with those in "buy local" communities seeing a 5.2% increase in holiday sales, while those elsewhere reported an average gain of 0.8%.

"Buy local" campaigns run by Independent Business Alliances and Local First groups are now underway in about 140 cities nationwide.

Nearly two-thirds of respondents said that public awareness of the benefits of supporting locally owned businesses had increased in the last year, while 24% said it had stayed the same and only 3% said it had decreased.

Business owners in cities with active "buy local" campaigns reported a wide range of positive impacts on their business. Almost half reported that the campaign had brought new customers to their business and 55% said it had made existing customers more loyal. More than two-thirds said local media coverage of independent businesses had increased and 51% said that local government officials were now more aware and supportive of the needs of independent businesses.

Comments from survey participants highlighted key challenges facing independent businesses, including the weak economy and government policies that often favor their large competitors. Yet businesses active in "buy local" initiatives repeatedly cited these efforts as making a difference in their survival and success. "It is abundantly clear to me that a greater percentage of the public is attuned to the value of supporting local independents compared to just a couple years ago," noted one Arizona business owner.

The survey was conducted by the Institute for Local Self-Reliance, a nonprofit research and educational organization, in partnership with dozens of national and local business organizations, including the American Booksellers Association, Alliance of Independent Media Stores, American Independent Business Alliance, American Specialty Toy Retailing Association, Business Alliance for Local Living Economies, National Bicycle Dealers Association, and TriMega Purchasing Association.

Complete results may be downloaded here [1].
Source URL:http://www.newrules.org/retail/news/survey-finds-buy-local-message-benefitting-independent-businesses

Similar surveys over the last three years [2] likewise found that independent businesses in cities with active "buy local" campaigns reported stronger sales gains than those in communities without such initiatives.

"This survey adds to the growing body of evidence that people are increasingly seeking out independent businesses and that shift is having a tangible impact on the bottom line," said Stacy Mitchell, senior researcher with the Institute for Local Self-Reliance [3].

"For the fourth year in a row, independent retailers in communities with active 'shop local' campaigns have shown stronger sales than retailers in communities without such campaigns," said American Booksellers Association [4] CEO Oren Teicher. "More and more shoppers are voting in favor of independent retailers with their spending, proving that they recognize that bigger is not always better — and making clear that they value a strong, unique, and vibrant community. The potential for locally owned businesses committed to working together could not be greater.”

"This survey offers further proof that, with sustained efforts, communities can indeed raise local consciousness and build a culture of support for local entrepreneurs," said Jennifer Rockne, executive director of the American Independent Business Alliance [5]. "Remarkably, most of the campaigns operated by Independent Business Alliances are funded by businesses paying $20 or less per month in dues. They're getting quite a return on their investment."

“We are encouraged by the positive impact, as well as the positive change in consumer behavior our members are seeing as a result of ‘Buy Local’ campaigns,” said Michael Morris, vice president of marketing for TriMega Purchasing Association [6], a national buying consortium of independent office supply dealerships. “Our dealers have reported improved customer loyalty, increased awareness of their brand, and more doors being opened to them thanks to 'think local' oriented initiatives."

[7]"Independent Business Alliances and 'buy local' campaigns are becoming a basic tool for independent businesses to help differentiate themselves from their big-box and internet competition by highlighting their meaningful connection to the community," said Kathleen McHugh, president of the American Specialty Toy Retailing Association [8]. "Once consumers understand why supporting local business is important to their community, they connect it to why they live where they do."

"Small, local businesses generate the majority of new jobs in the US," said Michelle Long, Executive Director of the Business Alliance for Local Living Economies [9]. "Buy Local First campaigns help bring these businesses and residents together to build community health and wealth -- from the bottom up."

Ten Reasons to Shop and Buy Local in South Florida

1. Significantly more money re-circulates in South Florida when purchases are made at locally owned, rather than nationally owned, businesses. More money is kept in our community because locally owned businesses purchase from other local businesses, service providers, farms and manufacturers. Purchasing locally helps grow other businesses as well as our South Florida tax base. Buy Local South Florida!

2. Most new jobs are provided by local businesses. Small local businesses are the largest employers nationally, and in South Florida provide most of the new jobs to our resident.

3. Our one-of-a-kind businesses are an integral part of South Florida. The unique, distinctive and diverse flavor of South Florida business owners is unlike any other part of the country, it's one of the reasons why we live here and stay here. Our tourism businesses also benefits and attracts thousands of visitors yearly due to the fabric and flavor of our local community. Help grow our economy, buy local South Florida.

4. Local business owners invest in our community. Local businesses are owned by people who live in our community, are less likely to leave, and are more invested in the community's future. Their kids go to school here, they build relationships, they have roots in our community. Buy local South Florida!

5. Customer service is better. Local businesses often hire people with more specific product expertise, language diversity and ethnic backgrounds for better customer service for their customers. Buy local, shop local.

6. Competition and diversity leads to more choices. A marketplace of tens of thousands of small businesses is the best way to ensure innovation and low prices over the long-term. A multitude of small businesses, each selecting products based not on a national sales plan but on their own interests and the needs of their local customers, guarantees a much broader range of product choices.

7. Reduced environmental impact. Locally owned South Florida businesses can make more local purchases requiring less transportation and generally set up shop in town and occupy the malls and shopping centers. This generally means contributing less to sprawl, congestion, habitat loss, pollution and most importantly, keeping the shopping centers occupied.

8. Public benefits far outweigh public costs. Local businesses require comparatively little infrastructure investment and make more efficient use of public services as compared to nationally owned stores entering the community.

9. Encourages investment in South Florida. A growing body of economic research shows that in an increasingly homogenized world, entrepreneurs and skilled workers are more likely to invest and settle in communities that preserve their one-of-a-kind businesses and distinctive character.

10. Non-profits receive greater support. Non-profit organizations receive an average 350% greater support from local South Florida business owners than they do from non-locally owned businesses.  Buy local South Florida!

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