(Grand Island Independent) -- A study examining the way businesses reinvest their revenue into local economies suggests not all businesses are created equal. Researchers compared locally owned businesses with national chains. They found that, for every $100 spent in a chain store, $14 went back into the local economy. For a locally owned business, it was $45, according to researchers from the Institute for Local Self-reliance, an organization established to provide strategies, models and information to support community development.
These numbers aren’t surprising, a local economic development expert said. “There is a commitment to the community that comes from a local owner,” said Cindy Johnson, president of the Grand Island Area Chamber of Commerce. “While we’re thrilled anytime there is growth or a new business, we’re especially fond of those locally owned businesses that are growing or new. If they are successful, those business owners understand it’s because of the community.”
While there are some exceptions, locally owned businesses tend to be more community minded, said Marlan Ferguson, president of the Grand Island Area Economic Development Corp. Still, others say consumers are king. Business is shaped by what they want, for better or worse. “Whichever business consumers choose, it might be giving them a better mix of products and better prices. There is a fundamental benefit there of improving quality of life,” said Dr. Eric Thompson, director of the Bureau of Business Research at UNL. “When people make decisions on where to spend, they make those decisions on what’s best for them. They might not consider the community impact.”
These numbers aren’t surprising, a local economic development expert said. “There is a commitment to the community that comes from a local owner,” said Cindy Johnson, president of the Grand Island Area Chamber of Commerce. “While we’re thrilled anytime there is growth or a new business, we’re especially fond of those locally owned businesses that are growing or new. If they are successful, those business owners understand it’s because of the community.”
While there are some exceptions, locally owned businesses tend to be more community minded, said Marlan Ferguson, president of the Grand Island Area Economic Development Corp. Still, others say consumers are king. Business is shaped by what they want, for better or worse. “Whichever business consumers choose, it might be giving them a better mix of products and better prices. There is a fundamental benefit there of improving quality of life,” said Dr. Eric Thompson, director of the Bureau of Business Research at UNL. “When people make decisions on where to spend, they make those decisions on what’s best for them. They might not consider the community impact.”
