Opinions Community Economy Creating an army of Freds
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By Elissa Sangalli Hillary
Executive Director, Local First
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There’s a lot of buzz about “local” these days.
You hear about it on the news, in advertisements, etc. Over the past eight years, the number of “Buy Local” campaigns has grown from five to nearly 100 across the nation. What is this movement really all about? Why is it important?
At the core, the local movement is about preserving community. It is about maintaining the uniqueness of our place and sustaining our natural and human resources. It is about supporting the places that are special to us – our favorite coffee shop, bookstore, bank, etc. – and employing our friends and neighbors.
As a child, one of my special places was Fred’s Pharmacy in Schoolcraft, Mich. Fred was the father of one of my childhood friends and his store was located in the heart of our village, directly adjacent to the sole local grocer. I relished the short-term freedom that the trips to the business provided. I was allowed to explore the cozy aisles while my mother filled prescriptions and chatted with Fred about relevant health issues. The visits always ended with Fred giving me a free sucker from his candy jar.
As an adult, I mourn my hometown’s loss of this memorable local business. Even more than a gathering place, the pharmacy proved an economic engine – pumping money and jobs into the small town. A 2007 study of local businesses in Kent County showed that 77 percent more money stays in the community when that money is spent at a locally owned, independent pharmacy (like Fred’s) rather than a national chain pharmacy.
Imagine what a difference 77 cents on every dollar makes! That money fuels personal savings accounts, business expansions, job creation and our community’s tax base for schools, road repairs and more.
The aforementioned 2007 study of Kent County businesses projected that shifting one in 10 of the dollars currently spent toward local independent businesses would create 1,600 new jobs and $140 million in new economic impact. In other words, shifting a mere 10 percent more of the money we’re currently spending to independent businesses would increase the county’s employment rate by one half a percent.
Did you catch that? By shifting money that is already being spent, we could create 1,600 new jobs, lower our unemployment rate and “save” those unique businesses that contribute to our community’s character.
Take a moment to imagine what a community full of economic engines – like Fred’s Pharmacy – would really look like. The people of the community would be employed in a diverse array of industries. New jobs might be created by import substitution. An increased demand for local products like apples, and services like banking, would allow local entrepreneurs to launch new businesses and hire community members.
Did you know that most new jobs are created by small, privately held businesses? Between 1993 and the third quarter of 2008, the U.S. Department of Labor reported that “firms with fewer than 500 employees accounted for 64 percent of the 22.5 million net new jobs (gains minus losses)” across the United States.
In a community full of lots of locally-owned economic engines, the closure of one employer or the decline of one industry would not prove devastating. Instead, the entrepreneurial creativity of the “Freds” would prevail.
By revaluating our priorities, we can make this vision a reality in West Michigan. For more info about things you can do to strengthen your local economy check out www.localfirst.com. MSS