The world is an interconnected place, which is both good and bad. I love being able to video call with my friend in Germany every week, but the reliance we now have on international supply chains makes us vulnerable to global events like the current fuel crisis.
It seems crazy that the irrational decisions of a Presidential numpty on the other side of the planet should have such a big impact on our lives down here in New Zealand. Is this really a good way to set up our economy or would a bit more resilience and a thriving local economy be a better idea? In this blog I’m going to discover why, even more than ever, we should support local businesses.
What is the importance of buying locally?
As a small business owner in NZ, I’m definitely going to vote for the latter. With the economy in a worse place than it was during Covid, and the war in Iran pushing up fuel prices to make it even worse, small businesses around the country are going out of business at an alarming rate.
These are the businesses that provide employment, pay local taxes, support local communities and give interest and colour to local communities.
We are a local business
Sustained Fun is a New Zealand business. Wherever possible we employ other Kiwi businesses to help us make our eco-friendly toys and games. When we shop locally, we’re not just supporting one business, we’re supporting a chain of people behind the scenes. For us this includes a designer, videographer, accountant as well as the printer that makes our Nature Fun Card Games.
So here are:
12 reasons why shopping locally is good for people and the planet
1. Better for the environment
- Locally owned businesses make more local purchases shortening the supply chain and decreasing emissions from transportation.
- They are generally located in city centres or home offices reducing urban sprawl, congestion, habitat loss and pollution.
- Local businesses often support local environmental projects.
2. More resilient supply chains
- When we buy locally, supply chains are shortened and less disrupted by international events.
3. Provide more and better employment
- In New Zealand, more than 600,000 people are employed by over 500,000 locally owned and operated small businesses.
- Small independent businesses are often more flexible to employees’ needs - giving staff a higher quality of life.
- A town with multiple businesses provides a variety of employment options.
- Multiple small businesses result in more associated employment. For example a town with 20 small shops can support an accountant whereas a big box retailer will have their own accounting team at head office.
- Locally owned businesses allow 2.5 million Kiwis to live outside of Auckland, Wellington and Christchurch.
4. Invested in a thriving community
- The variety of employment options means that people are more likely to stay in the community with their families, increasing the chance the local school will stay open.
- Entrepreneurs and employers stay living locally increasing the knowledge and skill base of the town.
5. Makes communities distinctive
- When our towns consist of many unique businesses they become varied and interesting attracting visitors and tourists who bring more money into the community.
- Shopping becomes a more interesting experience when there are 20 small businesses rather than one big box retailer.
6. Makes communities more resilient
- When towns are built around one employer, they lack the resilience of a town made up of a number of small businesses. If the one employer fails then the whole town can become unemployed.
- Local businesses offer a focus point for the community and form relationships with their customers. This interconnectedness increases the resilience of the town.
7. Supporting their communities
- Local businesses donate more money (per sales dollar) to local schools, events and teams than national chains do.
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Raffle prizes and donations to community projects might be small in monetary amounts compared to grants from big companies, but they provide essential funds for projects that big businesses aren’t interested in sponsoring - eg sports teams’ uniforms or school music trips.
8. Keeps money in the community
- When you buy from independent, locally owned businesses, more money is circulated through the community, about 48% compared to 14% from big business.
- Small businesses contribute 28% of NZ’s GDP.
- Locally owned businesses reduce inequality by spreading wealth. 20 or 30 small businesses all take a share of the money spent instead of one big box retailer funnelling money out of town to a few shareholders.
9. Higher contribution to public services
- Local businesses contribute more to local and national taxes (rates, companies tax, income tax), ensuring better public services like schools and transportation.
10. Innovation
- Small businesses aren’t restricted by corporate bureaucracy and can experiment and innovate.
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Small businesses produce 16 times as many patents in the USA than big businesses.
And the advantages of buying locally?
11. Supplies the products you need
- Local shops are more likely to stock the products their customers need - not those they are told to stock by head office.
12. Better Service
- Local businesses often hire people with more knowledge of the product so you get better service.
- Local business have people who know and support you.
This blog has been adapted from the original published by Remix Plastic in 2021.