Have you ever heard of the Local Multiplier Effect. Yes, it is a real thing and it is a compelling reason for you to consider how and where to spend your hard earned money.
How the Local Multiplier Effect Works
The money you spend at local, independent businesses has a greater economic impact because it is more likely to be spent again and again within the local area, rather than leaving the community for a corporate headquarters elsewhere. This results in
- Higher recirculation rate: When you spend money at a local business, a larger percentage (sometimes cited as up to 70%) stays within the community, compared to a much smaller percentage (around 15%) when spending at multinational chains.
- Support for local services: Local shops often use other local services, such as accountants, suppliers, and insurance brokers, which further spreads the economic benefit.
- Job creation: Local businesses employ local people, contributing to wages and sustaining jobs in the community.
- Community investment: Local businesses are more likely to support local initiatives, clubs, and community organizations, strengthening social bonds and contributing to a vibrant local economy.
- Net effect. Every €1.00 you spend with a local business can net a yield of up to €4.00 for our local economy.
Now isn’t that work keeping in mind the next time you go shopping
