Community impact
When Local Businesses Grow, Communities Benefit
Shop local is often presented as a feel-good message. For us, it is much more than that — it is an economic-development strategy.
Locally owned businesses employ local people. They purchase goods and services from other businesses. Owners and employees spend money in their communities. Businesses support charities, sports teams, festivals, nonprofits, and community initiatives. One local transaction can therefore create additional economic activity.
This is commonly described as the local multiplier effect. When money is spent with a locally owned business, a portion of that money can circulate again through local wages, purchases, services, and spending.
One dollar, several local transactions
A restaurant hires a local electrician. The electrician uses a local accountant. The accountant takes their family to a local restaurant. Employees buy groceries, fill their vehicles, hire contractors, and purchase products and services from other businesses. One dollar can participate in multiple local transactions before eventually leaving the community. That's the multiplier.
The local
Multiplier Effect
- 01Local intent“I need this.”
- 02Discovery“Who offers this near me?”
- 03Local business found“I found a local business.”
- 04Chosen“That's who I'm going to choose.”
Visibility to stronger communities
That's the bigger purpose behind what we do.
- Visibility
- Discovery
- Local spending
- The multiplier
- Stronger communities
While the exact size of the local multiplier varies by industry, ownership structure, supply chain, and community, the principle remains important: where we spend matters.
Every time our platforms, marketing services, search strategies, advertising, photography, video, or digital content help a consumer discover and choose a local business, we create another opportunity for local intent to become local spending. That spending can then circulate through wages, suppliers, services, sponsorships, charitable giving, and additional purchases throughout the community.
Building the digital infrastructure for shop local
We see The Shop Local Company as more than an advertising agency — we are helping build digital infrastructure for local discovery and local commerce.