Opinion: Think Local First
By Bill Cavanagh
Special to the Worcester Business Journal
Do The Math
Surely, the City of Worcester should continue working to attract businesses to locate and expand here. And it would be great if the CitySquare project comes to be. However, all of this would fall short of being enough if we fail to support the locally owned, independent businesses that already exist here. Our city has many fine business districts that are home to these locally owned business, such as Main Street, Park Avenue, Highland Street, Shrewsbury Street, the Canal District and West Boylston Street. As these businesses flourish, our city blossoms.
Compared to their national chain and franchise competitors, local, independent businesses recycle more money into the local economy in what is known as the “economic multiplier effect.” When we spend even a little more of our money locally instead of at chains and franchises, that turns into big bucks for the local economy. For every $100 spent at a locally owned business, $45 goes back into the community and our tax base. For every $100 spent at a chain store, only $14 comes back.
Several other reasons exist for why all of us should do more to support our local, independent businesses. Collectively, such businesses are the largest employer nationally.
In Worcester, they provide the most new jobs to city residents. Local, independent businesses are owned by people who live locally and are better positioned to respond to the special needs of the community. They have a stake in our community’s present and future well being.
Shopping at local, independent businesses is also much more energy efficient because such businesses generally make more local purchases, thus reducing significantly the need for fuel-guzzling, pollution-emitting interstate transportation. As a result, these businesses require much less infrastructure investment.
In addition, local, independent businesses make more efficient use of public services as compared to chain and franchise stores entering the community.
Furthermore, local charitable organizations receive an average 350 percent greater support from local, independent businesses than they do from chain and franchise businesses.
Local, independent businesses also ensure the unique character of our community as a great place to live, work, and visit, rather than as a homogenized Anyplace, USA.
A growing body of economic research shows that entrepreneurs and skilled workers are more likely to settle in communities that preserve their one-of-a-kind businesses and distinctive character. We must ensure that Worcester does all it can to be more unique so that we attract more newcomers and encourage our more recent Worcester college graduates to stay here.
Bill Cavanagh is co-chair of Worcester Local First (www.worcesterlocalfirst.org) and co-owner of C.C. Lowell (www.cclowell.com).
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