Citizen input during a comprehensive planning process always points to one of the great ironies of economic development, namely the support and failure of small businesses.
Take a few minutes and go read the results of the citizen survey for your local comprehensive plan. What you will find is the following:
- We need more small mom and pop stores or other small businesses;
- We want fewer big box stores and more economic diversity;
- We want our to see our downtown revitalized (generally combined with comments about interesting shops and restaurants).
You would be hard pressed to find a set of comprehensive plan survey responses that did not include citizens lament about the loss of locally owned small businesses. In one recent comprehensive plan citizen survey we looked at, nearly sixty percent of those who responded said they wanted to see more economic diversity, more small businesses, and fewer “big box” stores.
The irony is that when push comes to shove, citizens may want to see more small businesses, but they generally fail to support small businesses. Small businesses fail because citizens vote with their checkbooks and make decisions based on ease rather than a concern for a diversified economy. Let’s face it…it is easier to stop at a big box store for all of your shopping than to have to visit a half-dozen locations to accomplish the same thing. Or, worse yet, they may visit a small business and then go home and order online because it is easier and will save you a couple of bucks.
According to the 3/50 project, for every dollar spent at a locally-owned small business, a bit more than 60% of the businesses take will stay in the local economy. If you shop at a big box store, the percentage drops to a bit more than 40%. If you order online, the percentage is zero. The shopping decisions translate to fewer tax dollars being invested in the community and less money re-circulating. The 3/50 Project proposed a solution…go spend 50 dollars each in three locally owned businesses (restaurants, small shops, farmers markets, and so on) each month. Vow to spend roughly $150 per month locally and you may actually keep your small business community alive and thriving. For example: in a town of 6000 households, $50 expenditure would amount to $300,000. That is just one expenditure. For micro-businesses, that $50 dollar expenditure would keep their doors open for another couple of years, would pour $189,000 into the local economy, and would result in $15,000 in local sale tax.
If economic diversity is important to you, shop local. If local schools are important to you, shop local. If you economic diversity and products beyond the standard offerings at Walmart, shop local. If you want a local economy that actually works and is sustainable, shop local. If your only concern is to save a dollar or two by ordering online, then order away, but don’t complain when your property taxes go up to support local schools or local government. And the next time you are asked what you would like to see in you town, don’t lament the loss of small businesses and the prevalence of big box stores.
The Community Planner: A How-to Journal for Citizens & Planners