The Local Multiplier Effect

An article recently published by the American Independent Business Alliance (AMIBA) shed light on the importance of small businesses communicating the positive impact they have on local economies. Referenced as the “local economic multiplier effect“, the effect is a result of a greater percentage of revenue circulating through a local economy when money is spent at local businesses.

Research from Civil Economics states that the impact can come from three factors: direct, indirect, and induced impact.

Direct impact occurs when money is spent by local businesses to operate the business.
Indirect impact occurs when money spent by a local business at other local businesses re-circulate.
Induced impact occurs when consumers such as employees, business owners, and others spend their money in the local economy.

Such studies have taken place in Austin, Chicago, and Grand Rapids. On average, 48% of each purchase at a local business recirculated locally while less than 14% of a purchase at a chain business recirculated.  It is important to note that percentage values do vary by the size of the local economy. The information garnered in these studies is that purchases through local business do contribute more funds towards creating jobs and wealth in a local economy as opposed to chain-operated businesses.

The Local Multiplier Effect at Retailers - click to enlarge

The Local Multiplier Effect at Retailers – click to enlarge

The Local Multiplier Effect at Restaurants - click to enlarge

The Local Multiplier Effect at Restaurants – click to enlarge

(Images via AMIBA.net)

As the “Shop Local” movement continues to gain momentum across the country and in Raleigh, it is important that local businesses should take advantage of these findings. They can calculate Raleigh’s “local economic multiplier” for various supplies to determine the amount that is returned to the economy. It is also a good idea for businesses to promote these findings in an accurate yet memorable manner so that consumers are driven to spending money locally. Using advertisements and messages that are heavily ridden with percentages and statistics and are not linked to reliable sources are less likely to remain in consumers’ minds for long.

Feeling Creative? Feeling Festive? Submit a Design for this Year’s Raleigh Christmas Parade!

Greater Raleigh Merchants Association Raleigh Christmas Parade

The Greater Raleigh Merchants Association (GRMA) and Shop Local Raleigh (SLR) are looking for local artists to submit design ideas for the 67th Annual WRAL Raleigh Christmas parade. The WRAL Raleigh Christmas Parade Contest, sponsored by GRMA/SLR, will be accepting submissions from area artists from August 29, 2011 – September 26, 2011.

The winning design will receive $300 in cash, sponsored by Frameworks Gallery & Frame Design, Inc., member of SLR. The winning design will be used on the organization’s first official parade t-shirt, poster, and promotional items. The t-shirts will be worn by volunteers and sold to the public on the day of the parade held on Nov. 19 in downtown Raleigh.

“The Go Local message is a great unifying message for the Raleigh community and the new t-shirt will be a fun way to show your support,” says Emily Younger Wells, Board Member of GRMA/SLR.

Artists are asked to visit https://www.facebook.com/RaleighChristmasParade for rules and for submissions. The winning design will be selected by the GRMA parade committee.

For more information on the contest or to become a member of GRMA, log on to www.grma.org or contact Jennifer Bradshaw, GRMA Director at 919-755-9235 or info@grma.org.

About the Raleigh Christmas Parade
The Raleigh Christmas Parade will feature three giant helium balloons, approximately 35 floats, 20 marching bands and a number of other entertaining acts.

Drawing an estimated 60,000 spectators from across the state to downtown Raleigh and reaching more than 250,000 through television and live video streaming on WRAL.com, the parade is the largest single-day event in Raleigh each year. It is the largest parade between Atlanta and Washington, D.C.

About GRMA
The Greater Raleigh Merchants Association promotes the growth and sustainability of local businesses. For more information, visit www.grma.org.

For Wake County Businesses: A Chance to Honor Local First Responders

Thank you to Tina for sending this information to my attention!

Greater Raleigh Chamber Announces Friends of First Responders Program

Local Businesses Asked to Participate on Sept. 16

RALEIGH—On Sept. 16, the Greater Raleigh Chamber will honor first responders throughout Wake County by hosting the fourth annual First Responders Appreciation Breakfast.

With more than 2,000 first responders serving our community, it is impossible to recognize them all, so the Chamber is reaching out to you. We are asking local businesses to join us in thanking these men and women for the dedication, bravery, and commitment to our community that they show every day by participating as one of our “Friends of First Responders.”

Participation is easy—simply offer a discount or free item to any first responder in uniform or with identification on Sept. 16. For example: $1 off a meal, free sandwich, free soda, etc.—the discount is completely up to you. In return, we’ll recognize your business on the Chamber website—www.raleighchamber.org/firstresponders—and in radio and TV ads (pending).

Please join us in recognizing Wake County Emergency Medical Services, the Wake County Sheriff’s Office, the Raleigh-Wake County Emergency Communications Center, the City of Raleigh Fire Department, the City of Raleigh Police Department, the North Carolina Highway Patrol – Troop C, District III, and all first responders on Sept. 16. To sign up or find out more, call 919.664.7090 or email mkernan@raleighchamber.org.

About the Greater Raleigh Chamber
The Greater Raleigh Chamber of Commerce is the Triangle’s largest nonprofit business membership organization made up of more than 2,400 member firms representing two-thirds of the private sector employment in Wake County. The Chamber has represented the interests of the local business community since 1888.

For more information about this special event, contact Mary Kernan at the Raleigh Chamber (phone: 919.664.7090, email: mkernan@raleighchamber.org).

I’ve had the pleasure of working with many businesses who regularly provide discounts to identified or in-uniform service members and first responders. My advice to them when I received this information was to contact Mary and make sure that they provide her with the details of those existing offers so that they can be included in the information that the Chamber is going to publish online.

Cheers!
-Lisa

Local Business Spotlight: Happy Anniversary, Lucky B’s!

Happy 6th Anniversary to co-founders Mike Lombardo and Bates Battaglia, and their whole team, at Downtown Raleigh’s classiest dive bar… Lucky B’s! Join in the celebrations just “Around the Corner” starting at 5pm today (Saturday, May 21, 2011).

There will be free food, live music from James Dunn (pictured at right), a Red Bull DJ, and great giveaways like Kenny Chesney concert tickets! Check out http://www.facebook.com/LuckyBsBar for more chances to win before you head out.

Thank you to Mike, Bates, Mr. B, Suz, and the rest of the gang at Lucky B’s for allowing Raleighwood Media Group + Raleighwood Event Group to be a part of your continued successes – best wishes for another six years in Downtown Raleigh… and many more to come after that!

Come Join Us Today at a Few Shop Local Raleigh Events!


This month marks the two year anniversary of the launch of Shop Local Raleigh by the Greater Raleigh Merchants Association – happy birthday, SLR! Join us in celebrating today with two great local events:

Networking Event at Joint Venture Jewelry in Cary
From 4:00pm until 6:00pm, come and enjoy networking, great discussion, and a beverage with other SLR members, volunteers, and local business owners. (Don’t forget those business cards!)

Anniversary Party at Natty Greene’s in Raleigh
Shop Local Raleigh turned “2” on April 15th and to celebrate, we have partnered with NCSU marketing students to plan an Anniversary Party at Natty Greene’s Brewing Co. On April 28th, starting at 7 pm, there will be giveaways, $3 pints of local beer and fun guaranteed for all.

To add to the festivities, we have shared some fun statistics regarding small businesses, public relations, and the return on investment of email marketing, for SLR to use at these events. Along with those “trivia facts”, we’ve also included a special offer for event attendees – so be sure to check out what’s “in store” and “on tap” at these great events tonight. We’ll be back with those special offers here later on the blog, but we didn’t want to spoil the fun by giving them away in advance!

Cheers!