Shop local, Contribute 2009

Within a year, some of my favorite local stores – Schwartz Bookshops, Atomic Records, Paper Boat Boutique, Ess Elle Style Studio – have closed their doors due to downward market trends, new ways of selling, profound changes in technology, consumer habits, and, of course, due to bad times. Sadly, it’s likely that other hallmark names will be erased from the city, as well.

The demise of each unique establishment is another brushstroke in the re-making of the city's business picture. This should remind us of the importance of supporting local businesses.

Over the past two decades, the country has seen a dramatic rise in corporate and chain retailers. The closing of my favorite local shops is the dismal proof that not all independent businesses, no matter how valued, can fare well against big-box equivalents. Corporate chains keep their costs low through bulk buying and centralized advertising campaigns. They offer discounts and selections that local businesses can’t match. Chains also benefit from prevalence; their ability to build multiple locations gains customers because of accessibility.

While a chain’s lower prices are appealing, if you track the impact your money has on the community, you’ll notice that there are more benefits to buying at a neighborhood, one-of-a-kind establishment.

In fact, dollars spent at community-based merchants create a multiplier effect in the local economy. The American Independent Business Alliance estimates that for each dollar spent at a local independent merchant, three or more times as much typically goes back into the local economy compared to a dollar spent at chain-owned businesses. A 2003 economic impact study in Austin, Texas by Civic Economics (commissioned by the Austin Independent Business Alliance), concludes that for every $100 spent at a chain, $13 remained in the community, whereas $45 remained when that $100 was spent at a neighborhood business.

Idaho-based small business owners Orville and Heidi Thompson know what it means to struggle as small business owners. That’s why the Thompsons and their team at Scentsy, maker of wickless, scented candles, developed the Contribute 2009 campaign in Boise. In celebration of Scentsy's fifth year anniversary this year, the Thompsons gave a total of $100,000 to 40 small businesses in the Boise area by sending employees and suppliers into the community with $50 each to spend at local businesses.

According to a Business Wire news release, “The Boise Contribute results were inspiring. Scentsy employees also spent more than $10,000 of their own money to help local businesses. Skepticism from small business owners turned to gratitude when they saw there were no strings attached to this organized spend. Some owners were in tears. Others commented they didn’t think they would have survived the summer without it.”

Since then, the company has made a push for a nationwide campaign, encouraging each state’s communities to participate. This year, the new campaign, Contribute 2009, culminates the week of October 12, 2009 (next Monday) with encouraged shopping throughout the county, including in Milwaukee.

The goal of Contribute 2009 is to inspire 100,000 people to spend an extra $50 at locally owned small businesses on or during the week of October 12. That’s a $5 million economic infusion that can create a ripple effect in communities across the nation.

I thought this was a great “buy local” initiative for Milwaukee, which I definitely support. Anyone can take the Contribute 2009 pledge, so I encourage you to consider it.

Visit www.scentsycontribute.org for more information and to pledge to spend $50 locally to help Milwaukee area small businesses on October 12 (or another day that week).

Milwaukee’s unique character and local economy depend on vibrant, locally owned businesses that set us apart from other cities. In order to make Milwaukee a more sustainable community, we need to build awareness about the community benefits of choosing local.