Many of us have noticed how some nearby communities seem to be "wealthier" than other nearby communities. They seem to have more shopping markets, more restaurants, more choices; items often cost more in these communities than they do in surrounding areas, yet the affluence remains where the prices are high; people are drawn to these communities, bringing even more resources and more wealth.
The idea behind supporting local economies involves more than just agreeing with a concept, or voting in favor of regulations that favor local business. It involves putting our money where our mouth is?..to spend our money in the community in which we live, for the benefit of those around us. Too many times we are willing to drive long distances to find "exactly what we want" or purchase from internet providers and catalogs, that on a global scale causes large sums of money from a given area to migrate farther away, not to return as a benefit to the community in which it was spent.
There are a variety of reasons as to why this occurs, and all of us are guilty at some point or another. But in order for local economies to survive??.and thrive??.local neighbors must adjust their own mindset to being more receptive to goods and services provided in their own communities. When local business makes money, this in turn revolves back to the public, in terms of growth, more choices, new business creation, and money spent by local business men and women back into the communities from which the money was received. It takes years, and perhaps even decades to see the results sometimes, but a focus on community development, through the spending of your dollars locally, will make a difference in the long run.
About 20 years ago a number of businesses began the acquisition of large quantity goods at extremely low prices, and passed on this savings to the public. The idea caught on like a wave, and mega-stores such as Wal-Mart, Target, and Home Depot have been popping up all over the United States. Most of us have shopped at one of them, and all of us use products that are available there. We may drive 25 or 30 miles to reach one, and because of the time and distance traveled, we are willing to spend hundreds of dollars on one visit to justify the travel expense.
Large supermarkets of this type bring benefits to the community in terms of jobs. But it brings jobs that often pay single digit wages, perhaps hiring people who were laid off from better paying jobs.
What it does do is put tremendous pressure on local business to compete with pricing. Often they cannot compete well, due to lower customer volume or supply sources, and so can be forced into financial stress, or even bankruptcy, because of the new market's arrival. Many studies have been conducted to determine if the arrival of a national chain market has an overall net benefit to a community, or just weakens the local economy by collecting local dollars and transporting them elsewhere. While studies are inconclusive, many areas are suggesting there is a net loss.
In order for local economies to thrive, jobs must be plentiful and businesses must thrive. By this process, the money-----and that is the largest determining factor of the condition of a local economy---must recycle through that same community in which it was generated. Furthermore, a community must attract the dollars and resources of its surrounding areas, bringing in funding sources from "the outside". Growing economies have a positive net in "dollars recycling", where money is coming in from distant communities and staying there. Depressed economies have a net loss----where more money is leaving the community to buy goods and services elsewhere, rather than being applied in the community from which it was generated through jobs or business.
So one conclusion that can be drawn from this is that to improve our local economy (which involves spending dollars there) we must perhaps change our thinking. By developing a fondness for our home community, and a connection with people in our neighborhoods, it is more likely that we will be willing to spend money in our home areas. The grass is NOT always greener on the other side of the fence. It is greenest where the fertilizer was placed.
-----Tom Clouser Madisonburg, PA
Tom Clouser is a 38 year old farmer in Pennsylvania. In addition to farming, he and his father publish a monthly 16-page newspaper called "Trees 'n' Turf", which targets subjects of interest to those in land use industries and activities. View their website at http://www.clouserfarm.net
Lincoln Stretch rentals Alsip ..If you own a mobile truck washing, pressure washing or... Read More
Many ventures are faced with the challenging task of raising... Read More
For the employees, payday is the brightest day; they finally... Read More
You've heard it before; we're living in an information age.... Read More
What are the 5 best ways to gain new contacts?There... Read More
To wash an airplane there are many items you will... Read More
To get approval for your small business loan application, you... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
It has been said that the only constant is change.... Read More
The FTC Franchise Rule maybe changed, as the Federal trade... Read More
The current lack of industry leaders represents an exceptional opportunity... Read More
It is imperative to have your business legally prepared. How... Read More
Most business owners know when they need an accountant, but... Read More
If you run a mobile car wash, mobile fleet washing... Read More
There were only an estimated 1800 active franchisors in this... Read More
You know what makes me really happy? Drinking a Starbucks... Read More
Starting your own e-commerce business can be quite the adventure.... Read More
I have to admit, I was curious. When I saw... Read More
Essentially there are 5 tremendously powerful methods to make money... Read More
Every business plan book tells you how the Executive Summary... Read More
Are you a small business owner who wants to expand... Read More
The FTC- Mighty Federal Trade Commission has unilaterally decided to... Read More
The start of a new year is a time for... Read More
You make the decision to go into business and for... Read More
Many small companies work very hard to get new accounts.... Read More
Western Springs shuttle limo ..It's a commonly quoted statistic: 80% of all small businesses... Read More
Running a business on the net these days can be... Read More
You've heard it before; we're living in an information age.... Read More
Most pressure washing companies never look into some of the... Read More
All franchises must meet the legal definition of a franchise... Read More
If you own a small business, then you know the... Read More
Small business success is very similar to learning to walk,... Read More
You've probably heard the statistic that 95% of small businesses... Read More
If you intend to franchise your company you will need... Read More
A Small Business Opportunities Magazine is one of the new... Read More
What would happen if you decided to take an extended... Read More
If you have a busy private practice, chances are you... Read More
1. TargetYou are not all things to all people. Decide... Read More
Are you responsible for your results?What comes to mind when... Read More
Last year, trillions of dollars transferred hands on the internet... Read More
I propose this thought on the subject of Franchisee territory... Read More
We all know how glorious those first warm days of... Read More
Ok, so next to the taxman, your company payroll department... Read More
Until the day I learned to play chess I loved... Read More
This morning, I went to take a short walk outside.... Read More
After over thirty years advising small business it still comes... Read More
You'd like to go into business for yourself, and believe... Read More
One of the most common issues that comes up for... Read More
Success is the desire of everyman on the face of... Read More
The difference between rates and wages is not always clear... Read More
Small Business |