6 Ways You Can Support Your Local Economy

Supporting small businesses and local events strengthens your local economy.

A barter network enables people to exchange goods or services without cash. BIba Kayewich

The forces that shape our lives may seem faceless and distant. Economic and governmental decisions with significant implications are made by people in offices and boardrooms hundreds and even thousands of miles away. Sometimes these decisions happen with little or no input from the public, though we know and understand our local issues better than any far-removed bureaucrat.

We’re beholden to labyrinthine networks of influence in big government and big business that—at times—respect issues at the local level with the sensitivity and nuance of a bulldozer. Certainly, this centralization has its benefits. Sometimes it’s indispensable. But it can come at a cost.

The centralized economic model we live in often operates to the detriment of the local economy and local culture. Agrarian and cultural writer Wendell Berry put it succinctly when a character from his novel “Jayber Crow” said, “a community, to be a community, has to do a certain amount of its business within itself.” The necessities of economic activity tie people together. When the sources of economic life move away from the local region, local culture unravels.

In an essay called “The Work of Local Culture,” Berry put it this way: “As local community decays along with local economy, a vast amnesia settles over the countryside. As the exposed and disregarded soil departs with the rains, so local knowledge and local memory move away to the cities, or are forgotten under the influence of homogenized sales talk, entertainment, and education.”

Regions without strong local economies struggle to hold people in place and create the generational wealth, commitment, and memory necessary for culture and community to grow. Another champion of localism, Dale Ahlquist, noted how American culture becomes impoverished when the distinctive and local are replaced with the homogenized global economic system.

Ahlquist said, “If the government is local, if the economy is local, then the culture is also local. What we call culture right now is neither local nor is it culture. It is an amorphous society based on the freeway off-ramp and tall glowing signs that all say the same thing. Convenience is our culture.”

Setting aside cultural considerations for a moment, there are other, more pragmatic benefits to a thriving local economy:

• Local businesses tailor their products and services more carefully to the area they serve, offering better service and selections.
• Local businesses provide more jobs to community members.
• Small local businesses donate over twice as much to local charities compared to national competitors.
• Local economic activity reduces the need for transportation and urban sprawl, which results in less congestion and reduced environmental impacts.
• A strong local economy means a more robust tax base, leading to better public services.

With the extensive benefits of local economics in mind, here are a few suggestions to help foster your own local economy—and through it, your culture and community.

1. Shop Locally

This is the simplest, most direct way to nurture your local economy.

Research from the American Independent Business Alliance found that 48 percent of purchases at local, non-chain businesses will recirculate into the local economy, compared to just 14 percent of the amount spent at chain stores. Monica Haynes, director of the Bureau of Business and Economic Research at the University of Minnesota-Duluth, explains that “small independent retailers return more than three times as much money per dollar of sales to the local economy than chain competitors. So, in short, shopping at local independent retailers creates more revenue for local businesses and more local jobs.”

2. Leave Reviews

About 98 percent of prospective buyers view others’ opinions as important resources when making a decision about what product or service to buy. By leaving positive reviews for your favorite neighborhood store, bar, or restaurant, you can help increase the business’s visibility, credibility, and sales.

3. Participate in Community Events

Local job fairs, Small Business Saturdays, farmers markets, town festivals—these are all excellent opportunities to meet local business owners and discover new products and services. Networking there can benefit both you and the entrepreneurs in your area. Conservative business network Public Square points out, “These events not only provide small business owners with opportunities to showcase their products and services but also help to create a vibrant, interconnected community.”

4. Find or Form a Barter Network

A barter network is a tool that allows people to exchange goods or services without cash. Neighbors can trade equipment, machinery, clothing, food, labor and other things with one another. Some barter networks also facilitate payment with cash. Barter networks can help you learn about small businesses you might not otherwise be aware of, even if it’s something as simple as a neighbor who makes delicious homemade sourdough bread or a friend who does odd jobs and yard work.

I receive a monthly email from a barter network in my area that lists both goods and services offered and goods and services sought. Each month, I’m amazed at what’s available near me from small producers.

5. Give to Local Funding Initiatives

Some small business owners don’t have access to the capital they need to grow their businesses. Instead of the traditional bank loan, they may seek support through crowdfunding initiatives. Look at websites such as Patreon, Kickstarter, Indiegogo, Wefunder, or GoFundMe for local businesses seeking to raise funds.

6. Promote Local Tourism

Tourism brings in significant revenue to otherwise small-scale economies by capitalizing on local attractions and natural beauty. It’s the reverse of extractive business practices, where large companies mine a region for profits, which then line the pockets of executives far away. Instead, tourism brings outside dollars into the local community. Consider volunteering at a visitors’ center, becoming a tour guide, or working for your local tourism bureau.

Simple practices like buying locally or writing online reviews for small businesses can deliver a substantial boost to your local economy without requiring a major change in your habits. If each of us consistently spent our money in alignment with our values and to reinforce our local community, we can continue to improve the world around us.