Globalization. Recently it seems that everyone is talking about taking Lansing into the global economy whether it is willing or kicking and screaming. While there are great efforts to assist this process such as the creation of Port Lansing, or the joint educational programming through the Global Business Club and the Lansing Regional Chamber of Commerce, we must not forget the importance of supporting our locally based business. What do I mean by this? Locally owned and independent businesses are a key indication of a strong economy. In areas such as Chicago, studies have shown that such businesses circulate 70 percent more dollars into the local economy.

This concept of shopping locally is not a new movement. In several communities around the country, researchers have found that the economic impact of shopping for goods and services at locally owned businesses is significantly greater than at non-local alternatives. For example, in Austin, Texas, Civic Economics found that for “every $100 spent at a local bookstore $45 stayed local, but for every $100 spent at a chain store only $13 stayed” within the local economy. Shifting some of this money from chain or Internet-based businesses to local businesses can have an enormous impact. These local businesses are more likely to use other local businesses for services such as financial services, advertising, printing, office supply purchasing and others. These are just some of the facts and figures from around the country:

• For every two jobs national retailers bring to a community, three jobs are lost as a result of local businesses closing down.

• When you purchase at locally owned businesses rather than nationally owned, more money is kept in the community because locally owned businesses often purchase from other local businesses, service providers and farms. Purchasing locally helps grow other businesses as well as the local tax base.

• Local businesses spend more money at other local businesses, helping the local economy grow — creating a “multiplier effect” — rather than this money “leaking out” through remote corporate headquarters and centralized purchasing departments.

A growing body of economic research shows that in an increasingly homogenized world entrepreneurs and skilled workers are more likely to invest and settle in communities that preserve their one-of-a-kind businesses and distinctive character.

Capital Area Local First (CALF) is a collaborative effort among local independent business owners, nonprofit organizations and individuals in the capital area to support local ownership, a sense of community, and financial, environmental, and social well-being; to educate our community about the multiple benefits of locally owned independent businesses; and to nurture relationships among locally owned businesses.

In looking at the success similar programs have had in other communities, one can predict that the right combination of committed business leadership and the economic purchasing power of local citizens supporting local business allows CALF a real opportunity to positively impact Lansing- area businesses. For more information, go to the CALF website at www.localfirst.info.

The added potential of support through public and/or private grants, such as one recently awarded through the Steelcase Foundation to West Michigan Local First, could also add a significant boost to local first efforts in Lansing.

There are great things happening in this state. In Michigan’s current economic situation, it is a wise investment to support your neighborhood businesses. Whether it’s the independent pharmacy for your prescriptions, the local bakery for that birthday cake, or the mid-Michigan based office supply store, these businesses are owned and operated by your friends and your neighbors.

		Katharine Czarnecki is director of economic development for the Lansing Regional Chamber of Commerce.