The holidays are upon us once again and purchasing gifts for family and friends tops the list of priorities. Whether you choose retail goods or handmade gifts, with just a little effort, you can find the supplies you need in your local small businesses. Seasonal, edible gifts are low cost and meaningful to your friends and family. Sweet potato cupcakes with brown sugar frosting and candied pecans with ingredients purchased from your local farms can make a memorable, tasty and affordable gift for loved ones. Retail items by local artisans lend character to any gift. Sure, the big box stores advertise the lowest priced items, but what is the true price we pay in our local economies when we purchase from businesses that are not rooted in our community?
Small business is the foundation upon which local, state and national economies rest. Over half of the working people in the United States are employed by small businesses. Buying local demonstrates increased community solidarity by enhancing the local economy and contributing to the community’s unique character. Local purchases help build resilient economies by maintaining jobs, encouraging local production and manufacturing of goods and keeping dollars in our community.
Looking at the economic contribution of buying locally can bring to light the actual impact that each dollar spent in your region has on the local economy. The direct impact a small business has in the local economy includes four primary elements: employment, labor income, value-added and output. In its daily operations, a business makes purchases in the local economy that increase the demand for goods and services and thus the demand for labor; this is the indirect economic effect. As a result of the direct and indirect jobs created in the economy, there is increased household spending; this is the induced effect. For every retail business in Yavapai County that has $67,000 in sales during the month of December, the local economy receives a boost of $5,870 in labor income and just over $17,000 in regional output. Multiplying those figures by the total number of retail stores in the area, and the community at large is looking at a hefty sum of cash that will continue to ripple through the economy.
Understandably, we all have a budget that we must stick to. What this data shows, though, is that by making a conscious choice to keep our dollars in the community, we are contributing to the overall health of the region, supporting job creation and making sure that Yavapai County continues to prosper for future generations.
Regional efforts across the Quad Cities area demonstrate the conviction of our citizenry to maintain and enhance economic conditions. This holiday season is an opportunity for every community member to participate in the region’s commitment to building a resilient economy by supporting our local merchants. Get out, walk around and see what your local retailers and farms have to offer this season, and remember it’s not just the gift of giving, but the gift of giving back to your community when you purchase locally. QCBN
By Alexandria M. Wright, director Yavapai College Regional Economic Development Center
**The Yavapai College Regional Economic Development Center provides analysis and services that facilitate economic development throughout Yavapai County and build wealth in our local communities.
Alexandria M. Wright is the director of Yavapai College Regional Economic Development Center.
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