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
Hew Hampshire car wash market. Well we have visited every... Read More
KEEPING INTEREST HIGH: Supervision is key to the success of... Read More
If you are the boss and you think your job... Read More
Did you know that satisfaction is the number one emotion... Read More
One of the greatest pitfalls in e-commerce is Field of... Read More
What is a Virtual Assistant?? A Virtual Assistant is that... Read More
The Federal Trade Commission is upgrading the franchise law and... Read More
What's your job profitability? Do you know?Many business owners are... Read More
Cleaning the trailers towed by big trucks is not easy,... Read More
Your on-line success is based on your efforts and yours... Read More
Too often in business we get trapped into reviewing our... Read More
For the employees, payday is the brightest day; they finally... Read More
Starting your own e-commerce business can be quite the adventure.... Read More
For many small businesses, the "S" corporation is the business... Read More
Every business starts with an idea or a dream. To... Read More
Seventy percent of US households use the web when shopping... Read More
Database Problems in MarketingI have been working on a direct... Read More
Last year, trillions of dollars transferred hands on the internet... Read More
SBIR Corner: FFP vs. CPFF contracts:In the SBIR/STTR world, the... Read More
1. Don't Spend Too Much Time PlanningWhen you are entering... Read More
Why would you use an event pass?Event passes are often... Read More
Most business owners do not think of selling their companies... Read More
The current lack of industry leaders represents an exceptional opportunity... Read More
1. Look Over Your Shoulder ? Of course, Punxsutawney Phil... Read More
In the first part of this article I put forward... Read More
The stock market is still on a wild roller coaster... Read More
No, I'm not talking about gambling or dairy cows ?... Read More
How careful are you with the data you collect from... Read More
The FTC Franchise Rule maybe changed, as the Federal trade... Read More
All cities have a purchasing office and/or a procurement officer.... Read More
The following tips have come from a wide variety of... Read More
When you awoke this morning, you found yourself buzzing with... Read More
Am I the only one that does not have an... Read More
Your business is making profits, but where is the cash?... Read More
Why? Because they have access to world class public relations... Read More
A recent survey indicated that clean Taxi Cabs Fleets have... Read More
If you are looking for a way to own your... Read More
When deciding to host a fundraiser for your company or... Read More
What does buying a fat pig have to do with... Read More
I have to admit, I was curious. When I saw... Read More
There is a Batting Cages Business for those people who... Read More
You may find this Newsletter a little long winded but... Read More
As a company grows, the owner's role begins to change.... Read More
The choice of financing is an important determinant of whether... Read More
COLLABORATIVE NEGOTIATING:Collaborative negotiating is a win-win strategy that can focus... Read More
Articles abound advising the business community how to properly screen... Read More
One of the most common issues that comes up for... Read More
It's just like a marriageTo expect a bank manager or... Read More
What is the Big Race all about when it comes... Read More
As small business managers, we juggle limited resources in a... Read More
No matter how small your small business is, it is... Read More
If you are the boss and you think your job... Read More
If a customer owes your local business money, it's hard... Read More
One of the great challenges for independent professionals and small... Read More
Take advantage of world politics today and start your own... Read More
Where do you look for the appropriate alliance?One of the... Read More
As long as you eat and breathe you will stay... Read More
What would happen if you decided to take an extended... Read More
As you may know, there are many ways to incorporate... Read More
Have Some Time to Yourself One of the most important... Read More
Every business regardless of size needs a "Business Image Manual"... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Most businesses accept checks as form of payment for goods... Read More
You'd like to go into business for yourself, and believe... Read More
A Brilliant Marketing Idea... sounds great but what is it?... Read More
You only have so much time in a day right?So... Read More
Small Business |