Study: Local Businesses Keep More Money in the Local Economy

HYANNIS – According to a recent study conducted by Love Live Local, local businesses keep more money in the local economy.

“When dollars are spent at locally owned businesses, they can in turn be re-spent locally,” said Love Live Local CEO Amanda Converse.

“This re-circulating of money means locally owned retailers and restaurants keep 2-4 times as much of their income in the local economy as their chain competitors. It is also important to note that when dollars are spent online, virtually none of it stays on Cape Cod.”

Key findings from the survey show that retailers and restaurants on Cape Cod return a total of 50 and 55.7 percent respectively of all revenue to the local economy, whereas national chain retail stores recirculate an average of 13.6 percent of all revenue within the local markets that host its stores.

National chain restaurants return an average of 30.4 percent of all revenue to the local economy.

Retailers provide 75 percent more jobs per square foot and restaurants 20 percent more per square foot than nationally owned businesses.

Cape Cod hotels employ 11 percent more people than their corporate counterparts per $1 million in revenue.

Shifting 10 percent of spending to local retailers would put an additional $112 million in the local economy every year.

Love Live Local plans to not only use this information as an educational tool, but also to do further research and evaluation of the challenges and issues impacting the small local businesses in the Cape Cod community.

“The numbers only tell part of the story,” said Converse.

“So we look forward to working with the businesses surveyed to tell the stories behind the numbers.”

The organization also plans to look at the impact of corporatization on other economic sectors beyond hospitality, as well as public policy decisions and legislation that may favor larger businesses over mom and pop shops.

The report was made possible by Love Live Local’s Mission Supporters: Cape Cod Five, Mid-Cape Home Centers, Nauset Disposal, Cape Cod Young Professionals and Duffy Health Center.

To learn more about Love Live Local and to view the report, click here.