Gauging the Multiplier Effect
Based on $1,000,000 in local purchases, the following chart shows just what's at stake in a community's buying decisions.
LOCAL | BIG BOX | |
Times the money circulates locally | (68% stays) | (43% stays) |
1 Time | $680,000 | $430,000 |
2 Times | $462,400 | $292,400 |
3 Times | $314,432 | $198,832 |
4 Times | $213,814 | $135,205 |
5 Times | $145,393 | $91,940 |
6 Times | $98,867 | $62,519 |
7 Times | $67,230 | $42,513 |
TOTAL | $1,982,136 | $1,253,410 |
Economic Impact Studies Available on the Internet
The Andersonville Study of Retail Economics www.civiceconomics.com/Andersonville/html/reports.html
NFIB Small Business Policy Guide www.nflb.com/object/2753115.html
The Economic Impact of Locally Owned Businesses vs. Chains: A Case Study in Midcoast Maine www.newrules.org/retail/midcoaststudy.pdf
Procurement Matters: The Economic Impact of Local Suppliers www.civiceconomics.com/procurement/
The San Francisco Retail Diversity Study www.civiceconomics.com/SF/
The Effects of Wal-Mart on Local Labor Markets www.uvm.edu/~econ/neumarkpaper.pdf