Advancing Local Business
Advancing local business is the most effective way to promote healthy economic growth and build wealth in communities. This is due primarily to the local multiplier effect, comprised of the following three elements:
Local businesses have a direct impact because of the money spent on operations, including inventory, utilities, equipment, and payroll.
Local businesses have an indirect impact as dollars spent at other area businesses re-circulate throughout their community.
Local businesses have an induced impact due to the additional consumer spending that occurs as employees, business owners, and others spend income in the local economy.
“The Greater Philadelphia Area is the nerve center of the good business movement.”
Bradford Bucknum, Manager, Communications
Local independent businesses are the backbone of a vibrant and resilient economy, providing long-term positive social, environmental, and economic impact to communities. As such, small local businesses are the backbone of a vibrant economy.
They provide long-term positive economic impact: They represent more than 99% of all employer firms; they employ nearly half of all employers in the private sector; they’ve generated 2 out of every 3 new jobs in the United States since 1995 (including during the recession), and they are more likely to develop emerging technologies than large firms.
The small local business community is the engine of a diverse and inclusive economy. Almost ⅕ of all small businesses are owned by minorities, and more than ⅓ are owned by women.
Additionally, small locally-owned businesses are more likely to be actively involved in their communities and efforts to reduce their negative environmental impact than businesses headquartered outside of the communities they serve.