1DELUX MAGAZINE

3DELUX MAGAZINE

4 November | December 2015 www.DeluxMag.com

Economic EmpowermentWith the influx of targeted marketing from big retailers and e-commerce sites, local businesses (also known as small businesses) find themselves fighting for the American dollar. They are growing exponentially, but the rate at which they are growing trumps the rate at which Americans are spending towards them. So, what is the purpose of supporting local businesses? How would conscious efforts to support local businesses affect the economy?

Well for one:

Local businesses fight off unemployment.Unemployment by far is one of Americans’ worst nightmares, but by supporting local businesses, you can help keep their doors open and the paychecks rolling for their employees. According to the Small Business Administration, small firms accounted for 63 percent of the new jobs created between 1993 and mid-2013 (or 14.3 million of the 22.9 million net new jobs). Since the end of the recession (from mid-2009 to mid-2013), small firms accounted for 60 percent of the net new jobs.

Secondly:

Your money goes back into your community.The American Independent Business Alliance conducted a study, which proved that on average, 48 percent of each purchase at local independent businesses was recirculated locally, compared to less than 14 percent of purchases at chain stores. One reason why is because small

businesses acquire a significant amount of their resources from other local businesses within the community.

Besides these two reasons, local businesses keep your community unique. Think about it. How many tourists or visiting family members do you know that say “I can’t leave until I eat at XYZ”? If only restaurant chains existed across the world, one part of the traveling experience would be taken away.

Yet, local businesses are not the only ones needing community support. Black-owned businesses may be in more dire need of support than any other type of business. These businesses are often stereotyped as having low quality services or products with poor customer service and an overall negative portrayal within their communities. However, these businesses are rapidly adding jobs and offering innovative services within their neighborhoods. They are even cutting down on black crime amongst the youth.

The University of Delaware sociologist, Karen Parker, used a decade’s worth of data from the U.S. Census (1990-2000) to monitor the increase of black-owned businesses and then compared it to data concerning black youth crime. Her results proved that crime reduced as the number of businesses grew. So, how does a relationship like this form? Well, just like small businesses, black-owned businesses bring a wealth of job opportunities for the community. The difference

between the two is that majority of the black business owners are not simply viewed as local business owners within their communities. They serve as pillars of hope and as role models for the black youth.

Supporting black-owned businesses also allows the black community to control where money is spent and dispersed. African-Americans are comfortable with spending their dollars with European-based companies; however, those companies have little to no interest in building or investing within urban communities in order to boost the economy. Black business owners usually incorporate revitalizing their communities as a part of their mission. So, supporting black-owned businesses is the difference between spending money to create wealth within their own neighborhoods and spending money to continue to live in economic depression.

In conclusion, local businesses may not bring in the biggest bucks for the U.S. economy and black-owned businesses may not receive much spotlight, but each brings in a good portion of wealth, resources and positive influence within their local economy.

By: Kendra Pete

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