Does Shopping Local Actually Make a Difference?

The countdown to Christmas is on! And over the next few weeks we’ll all probably hear the words “shop local” dozens of times.

Regardless of age, most people love the idea of it. A recent article from Forbes noted that Boomers (80%) and Gen X (77%) were all about buying from small businesses, with Millennials (70%) and Gen Z (65%) also following suit.

But while shopping local in support of small businesses sounds good, especially during the holidays, does it actually make a difference?

Small Businesses Have a Big Impact in Western Iowa

A recent study discovered that for every $100 spent at a locally-owned business, a whopping $73 remains in that community.

Compare that to the $43 that remains when purchasing from a corporate chain.

When multiplied over and over, that $33 difference has a massive impact, especially in rural areas like ours. Small businesses are truly the backbone of Iowa’s economy, making up over 97% of employers and employing over half of our private sector workforce.

Each dollar spent at a small business supports our communities with increased tax revenue, which helps us improve our services and infrastructure while also providing jobs for people, too. The result? A higher standard of living that everyone can enjoy.

But it also has a deeper impact, too. Almost every business started out as a small, local one. By supporting our talented entrepreneurs during the gift giving season (and beyond), you’re becoming a part of their success story. 

Our Businesses Support Our Communities

We all know the importance of consumers supporting small businesses, but we often forget that those small businesses support us, too. That’s why shopping locally functions as a two way street. Everyone benefits!  

In fact, it’s been found that independent locally-owned businesses recirculate 48% of their revenue locally compared to 13% by corporate chains.

So, what does that mean for us? When we make a purchase from a small business, we increase the demand for local goods and services. When that happens, wages, profits, and jobs throughout Western Iowa also get a boost.

Dollar for dollar, when you shop local, you support economic growth, job creation, and one-of-a-kind restaurants and shops that add a vibrant dimension to our communities.

These entrepreneurs are our neighbors, friends, co-workers, and students; folks who are often more than willing to roll up their sleeves and invest their time, money, and talents in support of our neighborhoods. 

Do You Dream of Opening a Business in Western Iowa?

Do you dream of opening your own business? Have an idea but not the funds, connections, or training to make it happen?

Get in touch with us to learn more about creative funding opportunities and business resources that will help turn that dream into a reality.

What are you waiting for?

WIAD is ready to take on 2026, keeping an eye on education, support, and business tours while tackling workforce attraction and housing. We are committed to facilitating ongoing improvements in our region’s economy, quality of life, and tourism. Contact us today at 712.792.9914 or info@westerniowaadvantage.com and see how easy it can be!  Follow us on Facebook and LinkedIn.