Sixty-six cents of every dollar spent at a small business stays local

By Rob Vogt
About two-thirds of each dollar you spend at a small business will stay local versus about 11 cents when you spend a dollar at a multinational retailer.
That’s what the Canadian Federation of Independent Business found from a recent survey.
The federation recently issued a release stating that for every dollar spent at a small business, 66 cents on average stays local.
Conversely, 11 cents of every dollar spent stays in the community when consumers shop at a large multinational business.
An Angus Reid Group public opinion poll conducted on behalf of the Canadian Federation of Independent Business reveals that Canadians greatly overestimate how much of each dollar they spend at multinational companies is reinvested locally, while underestimating small businesses’ contributions.
When asked to guess how much money stays local when shopping at a large retailer with a physical location, such as Walmart, on average Canadians said 37 cents. Respondents also thought that 38 cents on average stays in the community when buying from a small business.
“Canadians assume the local contributions by large retailers and small businesses are on par, but the difference is significant. The importance of what shopping local means to our communities can’t be stressed enough,” said Andrew Sennyah, Alberta senior policy analyst for the Canadian Federation of Independent Business. “Small businesses are the backbone of vibrant communities and of local economies. They source their goods and services from other local businesses in a way the retail giants just don’t. This is why governments at all levels need to focus on policies that support local businesses, from extending the repayment deadline for the Canada Emergency Business Account loan, reducing taxes, cutting red tape, and implementing construction mitigation policies.”
“Every time Canadians choose to shop at a small business, they ensure the viability of their communities,” said Taylor Matchett, Senior Research Analyst at the Canadian Federation of Independent Business. “Shopping at a small business enables it to give back, whether it’s by hiring apprentices, sponsoring local hockey teams or donating to food banks. Two-thirds of your dollar helps keep our economy thriving and your community vibrant.”
Business owners can download the Canadian Federation of Independent Business’s new digital toolkit, including a printable poster and customizable social images, to promote local shopping here. For more information on how to support small businesses, check out SmallBusinessEveryDay.ca.
The Canadian Federation of Independent Business is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region. The Canadian Federation of Independent Business is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings.
Learn more at cfib.ca.

Check out our 16 page pullout in the October 18 edition of the Claresholm Local Press for more Small Business Week coverage.