The Advocates for Independent Business (AIB) and the Institute for Local Self Reliance (ILSR) teamed up to create a survey that would test the waters across the nation in regards to the effects that local first campaigns have on a variety of different areas of business.
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In its 8th year, the most recent survey gathered data from 3,057 independent and locally owned businesses from across the nation. The range of businesses surveyed is vast – recent start-ups, century old businesses, manufacturers, farmers, banks, restaurants – you name the company and the ILSR surveyed them.
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We understand that nobody wants to sit here and read a bunch of graphs and long data forms, but just hear me out. What you’re about to read will make you proud to live in a region with a resilient local economy such as ours.
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In 2014, independent business communities saw a revenue increase of 9.3{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} compared to only a 4.9{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} increase in similar communities without a local first campaign. Local First West Michigan member businesses saw a revenue increase of 17{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} in 2014 alone. That’s an astounding 7.7{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} higher than the average community!
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Additionally, 69{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} of respondents reported that having a local first campaign in their community positively impacted their business. 57{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} of respondents located in local first cities and who market the campaign heavily said that they saw a positive impact on their business. What is even more impressive is that 16{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} of businesses who are listed in the campaign but who do not actively promote it still saw a positive impact. That goes to show you that even if your business does not actively participate in the first campaign, it still has a positive impact. But don’t get the wrong idea; we still want you to promote us – for your sake as much as ours!
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While owning and operating an independent and local business has its many perks, it is not without its difficulties. The ILSR survey asked the respondents about some of the areas that caused their business the most strife. The most popular were: 71{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} said that competition from internet retailers hurt their business, 40{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} said that competition from large brick-and-mortar chains dampened their sales, and that rent or occupancy cost is too high relative to sales was a major issue for 24{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} of respondents.
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For the first time, the survey asked independent retailers about the wages that they pay their employees. The results suggest that the pay rate of employees at independently owned businesses far out measure the wages paid to employees at big box stores. 75{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} of the businesses surveyed pay their employees $10/hour or more and 34{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} pay their employees $15/hour or more. Proudly, it is reported that 74{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} of Local First West Michigan’s members pay their employees $10/hour or more and 43{6be771524f35e681d5eb1711abbe9ad08f29540a742404ae9fff00be7e8f65de} of our members pay their employees $15/hour or more.
