Over the past few years, a growing base of economic research has helped to quantify the Local Multiplier.  When dollars are spent at Local Independents, up to three times as much money stays locally, and since Local Independents are much more likely to keep the money circulating in the local economy the economic impact multiplies dramatically.  This economic growth resulting from the circulation of dollars within the local economy is the Local Multiplier at work. 

Civic Economics, a leading economic research firm specializing in the economics of ‘local, continues to publish thought-provoking research.  Three studies, in particular, stand out.

Local Works
This is the most comprehensive study of the health and impact of independent business ever conducted.  Merging elements of prior groundbreaking studies in Chicago, San Francisco, Phoenix, and Austin, the Grand Rapids quantifies market shares, economic impacts, and opportunities for growth in five lines of goods and services.  From this study we learn:

• A 10% Shift will make a huge difference in our local economies, and it can happen this year.  A study was recently completed in Western Michigan, detailing the effects of a 10% Shift, of annual purchases to Local Independents, by the 600,000 residents studied.  The results are staggering.  In one year, this modest behavior change would:
• Create 1600 jobs, reducing unemployment by .5%
• Create $137 Million in new economic activity for the area.
• Create over $53 Million in new wages.

Source:  www.civiceconomics.com/localworks
Civic Economics

The Andersonville Study
This study evaluates the economic impact of the neighborhood’s locally-owned businesses and compares that with the impact of competitive chains. With the activeparticipation of ten local firms, economic impacts were determined for each firm and compared with ten chains. To account for differences in revenue and size, those impacts were adjusted to two measures: impact per $100 revenue and impact per square foot. Because the locally-owned businesses and national chains were found togenerate comparable revenue per square foot of retail space, the local firms were found to generate 70 percent greaterlocal economic impact than chains per square foot, or 58 percent by revenue.

Source: http://www.andersonvillestudy.com/
Civic Economics

San Francisco, California - Retail Diversity and Impact Study

A groundbreaking study commissioned by the San Francisco Locally Owned Merchants Alliance to analyze the market shares of independent retailers and service providers in the city and adjacent suburbs, estimate the economic impact of those independents, and forecast the enhanced economic activity associated with modest changes in consumer behaviors. The final report was released in May 2007.

Source:  http://www.civiceconomics.com/html/projects.html
Civic Economics