October 17, 2011
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Maureen Metcalf
Think back to the last time you went on vacation. Chances are you didn’t visit a big box store for leisure. Instead, I’m willing to bet you strolled down a quaint street and bopped into boutiques and cozy little cafes. I’m also willing to bet that while doing that, you felt relaxed and happy.
Now think about your own neighborhood with the corner store that sells the best ice cream on the planet and the owner who knows your kids by name. Again, I’m willing to bet that this business contributes to your happiness and quality of life.
It’s not revolutionary to say that small businesses are the backbone of our economy and the biggest job creators; pundits on both sides of the aisle agree to those statements. But lets dig a little deeper.
They help communities
“Small businesses have a cascading effect on cities and towns—each small business is part of a total business network. When a big box moves in, a number of small businesses move out and you wind up seeing town centers gutted,” says David Cadden, professor of management at Quinnipiac University in Hamden, Connecticut.
So what happens when town centers are ‘gutted’?
“The impoverishment of a small business can lead to the impoverishment of an entire community; shuttered buildings cause everyone’s property values to go down,” he says.
In addition, owners of small businesses usually live locally, therefore your money is going right back into the community in which you live.
They help the environment
To be fair, big box stores do serve a purpose, and, yes, Costco’s prices can be awfully tempting. But the next time you think about getting in your car to drive across town, consider the environment, advises Charles Matthews, professor and executive director of the Lindner College of Business Center for Entrepreneurship at the University of Cincinnati.
“I only put 3,000 miles on my car last year because I walk everywhere—the grocery store, drug store, movie theater, bakery; shopping at small businesses is a way to lessen my carbon footprint,” he says.
They provide value
Lets talk about price. According to Cadden, big box stores have one strategy: cost leadership. And while low prices can make for happy cash-strapped customers, small businesses have an advantage in the customer service department.
“At big box liquor stores, for example, shoppers will buy on price, but at smaller stores the owner may know you and be able to give you recommendations; that customer service provides a higher value to the consumer,” he says.
Matthews agrees saying small business owners are “masters of the customized, personalized and individualized value proposition.”
He says, “You can’t call up a big box store and ask them to stay open for just 10 more minutes, but nine times out of 10, a small business will wait for you to get there; that customization is incredibly valuable.”
Yes, customer service can be valuable, but in today’s struggling economy, why should consumers pay more at small businesses?
Matthews is quick to answer. “It’s never a question of why spend more, it’s a matter of why you are spending at all; there is nothing wrong with buying at a discount chain, but there are hidden costs such as the price of gas to drive down the beltway—think about that,” he says.
What is your feeling on this issue? Do you shop local? Why or why not?
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Maureen Metcalf 5 months ago
I make a very conscious effort to shop local when ever possible. Most of my holiday gifts came from local artists and companies. Some are also local companies that import and consolidate like the Olive Orchard, started by a local couple and they bring in olive related products from around the world. It really is an interesting balance to find local products and also local businesses.I love shoping at the farmers market and appreciate that we now have winter markets. I was happy to see how much was available this past weekend including veggies.