NAC mail bag: "Benefits of local ownership" & "The Hometown Advantage."

An NA Confidential reader writes:

We enjoyed your take on the arrival of Applebee's, and seem to recall that some months ago, you ran a series of articles on issues relating to chains and local economies. I can't find them by searching.

There's been much written here on the topic, but what I believe you're remembering are a couple of entries in NA Girl's New Albany Renewal, both written in February.

She hasn't had time to update her blog lately, so I hope she won't mind my reprinting these two excellent articles here, with links back to the source.

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Benefits of Local Ownership, from New Albany Renewal.

Independent businesses not only compete with large chains but with prevailing attitudes that favor the large chains. Consider some of the benefits of local ownership:

The profits from local businesses circulate within the community. Independent businesses patronize smaller regional wholesalers and distributors. They rely on other local businesses for services such as banking, accounting, and printing.

Local merchants have a vested in interest in the community. Their property taxes support the services that they use. Small business owners support community organizations, volunteer, and donate more financial support locally than large corporations.

A homegrown economy composed of a diverse and numerous independent businesses provides a healthy, competitive marketplace.
Check out these links for more information about supporting independent businesses and a healthy local economy:

http://www.newrules.org/
http://www.amiba.net/
http://www.boulder-iba.org/
www.livingeconomies.org

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The Hometown Advantage, from New Albany Renewal.
Stacy Mitchell is a researcher for the Institute for Local Self Reliance and the author of "The Hometown Advantage." In her book she explores the trend toward a chain store economy and why that might not be the best thing for communities.

There is a perception that giant chains offer more convenience, wider selection, better service, and lower prices. It is assumed that chains create jobs and generate additional tax revenues. Economic development policy that offers incentives and grants and builds infrastructure to attract chains is based on these assumptions. When we look past the assumptions we discover that the public costs may outweigh the gains.

Chains have a place in the economy but does it make sense to use our tax dollars to give large corporations an advantage over locally-owned, independents?

Large chains reduce retail diversity. Reduced competition leaves the consumer at the mercy of absentee-owned companies that can raise prices or abandon the community.

Stacy Mitchell points out , "Local businesses enrich the civic fabric. Small merchants care about their communities more because they are part of those communities. The taxes they pay provide services, like schools and police and parks, that they and their families use. Small merchants give to community causes more than their big competitors. Their purchases and profits tend to circulate within and strengthen the local economy rather than flowing to distant suppliers or corporate headquarters."