Shopping Locally and How It Affects The Economy

Do you shop small or shop local? If so, you may be helping your local economy more than you know. Large companies are replacing startups, causing us to become more reliant on fewer companies than before.

And the consolidation of companies has been linked to income inequality.

When you shop local, you’re supporting your local economy – the little guys – and helping these companies flourish. From an economic standpoint, it makes a lot more sense to shop small because these are the companies that are spending money in your community.

How Shopping Local Affects Your Local Economy

A 2012 study analyzed the “local first” approach by gathering and analyzing the data of 15 retailers and seven restaurants. All of these businesses were local, small entities and not one of the big chains that you’ll find on every city corner.

What the study found was pretty shocking, because small companies like ourselves (we offer super cute, handmade activewear for women) are the drivers of the local economy.


The study found that:

  • Local retailers returned 52% of the revenue they receive to their local economy
  • Chain retailers returned just 14% of the revenue back into the local economy

When you shop local, you help boost other local brands. For example, we make homemade activewear, and we shop local to help other local businesses grow and thrive. Large corporations have the purchasing power to push prices down and will go to the cheapest supplier, which may be several states or countries away.

Local retailers and stores, especially restaurants, spend money on local good, labor and services.

Thank you for shopping local sign in the window

Shopping Local in the Post-Pandemic World

In every state across the country, even in our beloved Florida, small businesses were hit hard by the pandemic and closures that followed, leading to massive companies, like Amazon and Walmart, reaching record revenue levels.

But there’s also been a shift that is occurring as local communities pull together to support the mom-and-pop stores that are in the community.

Intuit conducted a survey on 1,500 people that found:

  • 70% of Americans are shopping local
  • 57% of these individuals want to keep money in their community

In the winter of 2020, 20% of consumers focused on shopping at small businesses. And shopping local supports your community’s creators, helps create jobs, and let’s be honest: the customer service is so much better.

Your small businesses donates twice the amount, actually almost three times the amount, than corporations donate to community causes and nonprofit organizations.

Shopping and Supporting Your Local Community

Communities can create a vibrant culture where everyone thrives, and local jobs are created. The small businesses you shop at are pouring money back into your community, helping to shape the community.

With big named businesses taking massive market share away from local businesses, it’s easy to forget that 95% of the companies in the US are small businesses.

Your decision to shop local and shop small is what contributes to the economy, both local and on a national scale. Where you spend your money is a choice and an opportunity to help your local community flourish or support large businesses that don’t put money back into the local economy.

Shop Small and Local with DanaLouFIT

We hope you give DanaLouFIT a try, we've been handmaking in the USA since 2014. 

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