warebywhere your money goes when you shop local
buying from the shop down the street keeps more of your money working near you. here’s how much, and why.
more of it stays near you. civic economics surveyed businesses in 20 places between 2012 and 2022 and found independent retailers put 52.9% of their revenue back into the local economy (local wages, local suppliers, local services and profits spent nearby), compared with 13.6% for chain retailers. for restaurants, it was 64.1% against 30.4%. that’s the “local multiplier”: money that keeps changing hands between neighbors instead of leaving town.
how much stays local?
| kind of business | independent | chain |
|---|---|---|
| retailers | 52.9% | 13.6% |
| restaurants | 64.1% | 30.4% |
share of revenue recirculated in the local economy, from civic economics’ indie impact studies (318 businesses in 20 places, 2012 to 2022).
why does more stay local?
- local owners live nearby and spend their profits nearby.
- local staff are paid by someone who isn’t sending margins to a head office.
- local suppliers: independents buy more from other local businesses, like accountants, printers and farms.
- local giving: small businesses sponsor the teams, schools and fundraisers in their own town.
how big is small business in minnesota?
minnesota has 560,428 small businesses, 99.5% of all businesses in the state, employing 1.3 million people (45.8% of the state’s workers), according to the u.s. small business administration.
how can you shop local more often?
- buy gifts from makers and small shops near you.
- order from home bakers and local restaurants directly, without a delivery app’s cut.
- shop markets in season.
- use a local marketplace: on wareby, every shop is an independent business within 25 miles, and warebucks you earn only spend at local shops.
questions people ask
why is shopping local better for the economy?
more of the money stays nearby: civic economics found independent retailers recirculate 52.9% of revenue locally, compared with 13.6% for chains.
what is the local multiplier effect?
the extra economic activity created when money spent at a local business is re-spent nearby, on wages, suppliers and the owner’s own shopping.
how many small businesses are in minnesota?
560,428, which is 99.5% of the state’s businesses, according to the u.s. small business administration.
sources
we started tandoco, a small bakery in minneapolis, and sold under a blue tent at farmers markets before we built wareby. our story
