You've heard it countless times. But do you know why it actually matters?
Beyond the feel-good sentiment, there are concrete, measurable reasons why supporting small businesses makes sense—for your community, the economy, the environment, and even your own quality of life.
Here are 15 reasons, backed by data, that make the case for shopping small.
Economic Reasons
1. More Money Stays in Your Community For every $100 spent at a local business, approximately $68 stays in the local economy. At national chains, only $43 stays local.
2. Small Businesses Create Jobs Small businesses employ 46.4% of the private workforce in America. That's nearly half of all private-sector jobs.
3. They Pay Taxes That Fund Local Services Small businesses pay property taxes, sales taxes, and local fees that directly fund your community's schools, parks, roads, and emergency services.
4. They Support Other Local Businesses Local businesses buy from other local businesses. The restaurant sources from the local farm. The retailer uses the local accountant.
5. They Generate More Economic Activity Per Square Foot Local retailers generate approximately 70% more local economic activity per square foot than big box stores.
Community Reasons
6. They Donate More to Local Causes Small businesses donate to local nonprofits at rates 250% higher than large corporations. They sponsor little league teams, support school fundraisers, and contribute to food banks.
7. They Create Community Gathering Spaces The coffee shop where everyone knows your name. The bookstore hosting events. The restaurant celebrating milestones.
8. They Preserve Local Character What makes your town unique? Often, it's the local businesses—the family diner, the independent bookstore, the quirky antique shop.
9. They Build Trust and Social Capital Communities with strong local business sectors show higher levels of civic engagement and neighbor-to-neighbor trust.
10. They Respond to Local Needs A local business can stock specialty items for the neighborhood, stay open late during emergencies, or create programs that would never make sense on a corporate spreadsheet.
Personal Reasons
11. You Get Better Service Local business owners and employees have real expertise and genuine interest in helping you.
12. You Find Unique Products Local businesses curate selections based on their expertise and community needs, not national sales algorithms.
13. You Can Build Real Relationships The local shop owner who remembers your preferences. The barista who knows your order. The service provider who understands your history.
14. You Vote with Your Wallet Every purchase is a choice about what kind of economy you want to support. When you buy small, you're voting for local ownership and community investment.
Environmental Reasons
15. Smaller Environmental Footprint
Local businesses typically have smaller carbon footprints:
• Products travel shorter distances
• Less packaging needed for shipping
• Existing buildings are used (less sprawl)
• Walkable locations reduce driving
Find small businesses to support at Local Marketplace.