Why Shopping Local Matters

The hashtag #shoplocal is more than just a social media trend or a temporary cause to support. It’s a vital practice with real power to boost the economy, strengthen communities, foster local development, create and sustain jobs, and more. At Casey State Bank, we believe in the power of community and want to help you understand the impact you can make by shopping locally. In this blog post, we look at the benefits of local shopping and how it impacts everyone.

The Multiplier Effect

The multiplier effect is an economic term. It describes the proportional increase or decrease in income resulting from capital being injected into or withdrawn from an institution, industry, or area. In economics, defining the multiplier in the multiplier effect helps economists measure the impacts of changes in economic activity like shopping locally. 

Consumers spending money at local businesses can trigger a chain reaction, or multiplier effect, in local economic activity. When people spend money locally, it will circulate within that locale, directly and indirectly impacting the local economy. A direct impact includes money spent on business operations, including utilities and paying employees. An indirect impact includes businesses spending money at other local businesses for supplies or services.

Strengthening Local Businesses

When local businesses thrive, the local community thrives—local businesses are the backbone of any community. A conductor of the multiplier effect is when local businesses are strengthened through local consumers spending money, and that money flows back into the local community. Local support is what keeps businesses from closing.

Impact on Community Banks

Community banks exist to support and serve the local community. Through financial services and relationships, community banks can meet the needs of their customers on a level unparalleled by larger, national, or global banks. Community banks play a vital role in creating positive, long-term changes for local businesses. When consumers support local businesses, the ripple effect reaches community banks as more financial transactions occur, and banking services are used.

Job Creation and Retention

Over the past 25 years, small businesses have generated 12.9 million jobs. In regards to job retention, studies show that during times of economic downturns, small local companies retain more employees than big box retailers. When people in a community can find and keep their jobs, the whole community thrives through money flowing back into that community.

Community and Social Benefits

Shopping locally benefits communities in many ways beyond a thriving economy. Local businesses most often take an active role in community events, supporting local charities, schools, and youth sports. The economic impact of shopping locally creates a cycle of community support that fosters a sense of belonging and connection.

Environmental Impact

The digital marketplace often puts the spotlight on e-commerce, but it is essential to understand the positive impact shopping locally has on the local economy and the global environment. Shopping locally can help reduce our carbon footprint and conserve energy. Other ways shopping locally has a positive environmental impact include preserving natural resources and reducing waste. Many small local businesses source local products and materials, minimizing costly supply chains, decreasing the need for shipping materials, and requiring fewer transportation miles.

How Can You Make a Difference?

Society today is used to the convenience of big box stores and online shopping. Here are a few tips to help you shop local:

• Learn about local businesses by doing a map search for “(product or service) near me.” 
• Eat at locally-owned restaurants
• Bank local at community banks like Casey State Bank in Illinois.
• Visit farmers’ markets when in season.
• Buy “locally produced” items at your local grocery store.

Shop Local: It Makes a Difference

Shopping local is more than a social call to action using a trending hashtag. It is an intentional practice that makes a big difference. At Casey State Bank, we’re committed to supporting local businesses and helping to strengthen our community. We understand the significant impact supporting local businesses can have on the people in our community and the economy. Supporting local businesses helps establish a more robust community bank, increases job opportunities and retention, and provides many other social and economic benefits. 

When you choose to shop locally and bank with community banks like Casey State Bank, you contribute to the larger community. We hope you will support the #shoplocal movement by taking tangible, intentional action, knowing that every local business you support helps your community thrive. 

Casey State Bank

At Casey State Bank, we believe in community! We have a deep understanding of local needs and offer various financial services for individuals and businesses. Through personalized banking services and an unwavering commitment to customer support, our dedication to fostering relationships is unmatched, making us a trusted banking partner for generations. Please contact us today to discover how we can help you with all of your banking needs!