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The Sleepy Eye Herald Dispatch
  • Support Sleepy Eye

  • What does support Sleepy Eye mean? The answer is different for each of us, so I will give you my opinion as the director of the Chamber of Commerce.
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  • What does support Sleepy Eye mean? The answer is different for each of us, so I will give you my opinion as the director of the Chamber of Commerce.
     
    Have you ever thought what would happen to our local economy if you spent just $10 more per week at a local, independently owned store? I did some research and found an article by Jeff Milchen with the American Independent Business Alliance, and he writes that economists call this idea the economic multiplier. It is called a multiplier because typically local independent businesses recirculate a much greater percentage of sales locally than an absentee-owned business. This may potentially cause a huge impact on our local economy and health of our business environment.
     
    To determine the economic impact, there are three areas to measure - the direct, indirect and induced impacts. According to Milchen, direct impact is spending done by a business in the local economy to operate the business, including inventory, utilities, equipment and pay to employees. Indirect impact is dollars spent by local businesses at other area businesses and induced impact refers to additional consumer spending that happens as employees and business owners spend their money in the local economy.
     
    To put it plainly, a study done by the Institute for Local Self-Reliance www.ilsr.org/initiatives/independent-business/ explored how much of a dollar spent at a local independent store is re-spent in the local area in the form of payroll, goods/services purchased from area businesses, profits spent locally by owners, and donations to area charities. The study found each $100 spent at local independents generated $45 of secondary local spending, compared to $14 for a big-box chain.
     
    The idea of just $10 a week could mean hundreds of thousands of additional dollars that will be recirculated to other businesses or charitable donations. Consider this with the upcoming holiday season to look at the impact you can make on the local economy by shopping locally. Supporting Sleepy Eye means I support Sleepy Eye because Sleepy Eye supports me.

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