{"id":8245,"date":"2015-11-22T18:00:07","date_gmt":"2015-11-23T01:00:07","guid":{"rendered":"http:\/\/financenewmexico.org\/?p=8245"},"modified":"2015-12-04T11:21:18","modified_gmt":"2015-12-04T18:21:18","slug":"communities-benefit-from-black-friday-when-shoppers-buy-local","status":"publish","type":"post","link":"https:\/\/financenewmexico.org\/sandbox\/articles\/investment-in-new-mexico\/communities-benefit-from-black-friday-when-shoppers-buy-local\/","title":{"rendered":"Communities Benefit From Black Friday When Shoppers Buy Local"},"content":{"rendered":"
\"Red<\/a>

By Finance New Mexico<\/p><\/div>\n

The arguments for shopping at independent, locally owned New Mexico businesses before bargain hunting at national retail chains are many \u2014 and they\u2019re all good.<\/p>\n

Local businesses are more than twice as generous to hometown nonprofits that fulfill community-specific needs, according to the American Independent Business Alliance (AMIBA), and they are more loyal and accountable to the people they employ and live among. Local businesses are typically small, and this sector of the economy employs 48 percent of the private sector workforce.<\/p>\n

Shopping locally reduces environmental impacts associated with transportation. It supports businesses that offer products and services that reflect local tastes and a community\u2019s distinctive character.<\/p>\n

But the best reason to spend money at a local business rather than an absentee-owned business \u2014 including during the critical holiday shopping season \u2014 is the financial recycling that results.<\/p>\n

Follow the Money<\/strong><\/p>\n

Numerous studies by the Civic Economics strategic-planning group reinforce the concept of the \u201clocal multiplier effect.\u201d Simply put, a dollar spent at a locally owned business has a much greater likelihood of staying \u2014 and recirculating \u2014 in the local community than a dollar spent at a national chain store.<\/p>\n

A 2013 Civic Economics survey conducted in Albuquerque for the Buy Local Business Alliance found that the local circulation of revenue from national retail chains was 13.6 percent compared to 39 percent for locally owned retailers. In the restaurant industry, national chains recirculated 30.4 percent of revenue earned and independents 77.3 percent.<\/p>\n

Multiplier impacts are direct and indirect. A local business makes a direct impact by buying inventory, services and equipment from local suppliers and paying wages to area employees. When employees and business owners spend revenue and wages in the local economy, that represents an indirect impact.<\/p>\n

\u201cWhile chain stores and restaurants extract locally generated revenues from the community with each nightly bank transaction, independents are creating a virtuous cycle of local spending,\u201d Civic Economics asserts in Indie Impact Study Series 2013-14: Survey<\/em>. \u201cThe extra dollars in the local economy produce more jobs for residents, extra tax revenues for local governments, more investment in commercial and residential districts and enhanced support for local nonprofits. In short, these businesses create better places.\u201d<\/p>\n

Better Use of Public Funds<\/strong><\/p>\n

A 2002 study of Barnstable, Mass., by Tischler and Associates tangibly demonstrates how small, local businesses make better use of tax revenue by placing less demand on infrastructure and public services.<\/p>\n

The study compared land-use impacts on tax revenue and expenditures and found that big retailers and fast-food outlets leach more from public services than they generate in revenue: A big-box store actually creates an annual tax deficit of $468 per 1,000 square feet versus the annual surplus of $326 per 1,000 square feet generated by Barnstable\u2019s small downtown stores.<\/p>\n

Organizations like the New Mexico Green Chamber of Commerce and New Mexico\u2019s MainStreet program cite studies such as this when urging New Mexicans to think beyond the short-term savings of a big-box bargain. Keeping local wealth closer to home, they say, pays social, environmental and economic dividends over a much longer term.<\/p>\n

Download 425_Communities Benefit From Black Friday When Shoppers Buy Local<\/a>\u00a0PDF<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The arguments for shopping at independent, locally owned New Mexico businesses before bargain hunting at national retail chains are many \u2014 and they\u2019re all good. Local businesses are more than twice as generous to hometown nonprofits that fulfill community-specific needs, … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/posts\/8245"}],"collection":[{"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/comments?post=8245"}],"version-history":[{"count":2,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/posts\/8245\/revisions"}],"predecessor-version":[{"id":8249,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/posts\/8245\/revisions\/8249"}],"wp:attachment":[{"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/media?parent=8245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/categories?post=8245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financenewmexico.org\/sandbox\/wp-json\/wp\/v2\/tags?post=8245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}