CHAMPAIGN, Ill. (Chambana Today) — This Saturday is Small Business Saturday, and with the holiday shopping craze in full swing, it can be the perfect opportunity to do some shopping even after Black Friday.
Research shows that locally owned businesses generate significantly more local impact than chain stores. For ever $100 in consumer spending, $68 remained in the local economy when spent at a locally owned business, as opposed to $43 remaining when spending at a chain. The reason for that is that local businesses spend more on local labor, procure more locally, keep profits locally, and give more to local charities.
Recent research by iLocal suggests that the local multiplier effect often ranges from two to four times for local independent businesses. The local multiplier effect is how much extra economic activity is generated by local spending. This means that one dollar spent locally can produce two to four dollars in total economic output once indirect and induced effects like wages are counted. iLocal also found that local businesses recirculate 45 to 60 percent of their revenue locally.
When you leave the house to do some early holiday shopping this Saturday, consider stopping by a local business.
