“ I love to see people get out and enjoy the holiday parades and tree lighting ceremonies that are a big annual tradition . Consider hiring a local caterer for that holiday open house party . Take the family to Lumination at Gilroy Gardens . Visit local stores to personalize your gift-giving when shopping for the wine enthusiasts , theater goers , book lovers , or fitness buffs in your life . Take friends on a wine tasting tour of our local wineries . Treat family members to a class at Gavilan or a membership at one of our community centers to explore new interests and develop new talents . Support holiday giving drives organized by our churches and nonprofits to provide food , clothing , books and toys to deserving local families . Make it a date night to attend a local holiday fundraiser such as Community Solutions ’ annual Black , White & Bling gala at the Granada .”
Understanding the Multiplier Effect
The American Independent Business Alliance ( AMIBA ) shows how independent locally-owned businesses recirculate a greater percentage of revenue locally compared to absentee-owned businesses . Hence , going local creates more local wealth and jobs .
AMIBA defines the multiplier effect as being comprised of three elements :
• Direct impact is spending done by a business in the local economy to operate the business , including inventory , utilities , equipment and pay to employees .
• Indirect impact happens as dollars the local business spent at other area businesses re-circulate .
• Induced impact refers to the additional consumer spending that happens as employees , business owners and others spend their income in the local economy .
( Source : amiba . net /)
Local Self-Reliance
According to the nonprofit Institute for Local Self-Reliance ( ILSR ), an economy populated by many small , independent businesses produces a more equitable distribution of income and opportunity , creates more jobs , supports an expansive middle class , and is more compatible with democracy and self-governance than concentrated economic power .
According to an ILSR analysis , “ Amazon creates just 17 jobs for every $ 10 million in sales , while traditional brickand-mortar retailers create jobs at more than twice that rate : 42 positions for each $ 10 million in sales .” We need to be aware that even a retailer as powerful as Walmart is moving a significant portion of its business online , in order to compete with Amazon , despite the fact that this will cannibalize its own brick and mortar business .
Based on this and other studies , ILSR has found that “ places that are home to numerous locally-owned businesses are more prosperous , sustainable , and resilient than those in which much of the economy is controlled by a few big corporations .” Its findings point to “ encouraging signs that community-scaled enterprises are on the rise , charting a path toward a more just and sustainable economy .” ( Source : ilsr . org )
Research shows that regardless of the size of a municipality , its most potent tax-generating area is its downtown or Main
Street . A study of over 30 jurisdictions across 10 states showed that regardless of their size , municipalities receive a higher level of tax revenue from dense , walkable , mixed-use urban development . Assessing land use on a “ per acre ” measurement of its tax revenue generation , study calculations showed that a county earns about $ 7 in property taxes per acre from a typical big-box retail store , and about $ 287 per acre on a mixed-use Main Street-style business district . ( Source : “ Thinking Differently About Development .” Joe Minicozzi , Government Finance Review , August 2013 .)
Whether we shop online , patronize large national retailers , or buy from local small businesses , our consumption habits matter . Each has its place in our economy . It ’ s up to us to decide how and where to invest our hard-earned dollars , to strike a balance .
“ Main Street ” Gilroy and “ Main Street ” Morgan Hill are unique . Together with San Martin , they make South County unique — a dynamic ecosystem made up of people whose businesses exist to serve us . People who believe in our community enough to invest locally , hire locally , and partner with local government and other businesses . People who volunteer and give back to our local schools and community service organizations .
At the end of the day , each decision we make impacts the identity and vibrancy of the community we live in . Let ’ s make South County the best it can be .
WHY SHOP SMALL ?
Small business owners bring Main Street to life .
• They offer products and services we need .
• They employ locals and offer summer jobs to our teens .
• They patronize local banks as well as insurance , accounting and legal firms .
• They generate sales tax revenues that help pay for public safety , road repairs , and a host of other things we take for granted .
( Source : americanexpress . com / us / small-business / shop-small / about )
GILROY • MORGAN HILL • SAN MARTIN NOVEMBER / DECEMBER 2016 gmhtoday . com
29