Why Buying Local Isn’t Just Feel-Good, It’s Smart Business

Buying local is not just a feel-good slogan; it’s a powerful economic strategy that businesses and communities can’t afford to overlook.

Local Spending Stays Local

When you spend $100 at a local business, roughly $68 stays in the community. Spend the same at a national business, and only $43 stays in the local economy. That's not pocket change; it’s the foundation of a stable economy.

Local businesses hire local vendors, accountants, designers and cleaners. They reinvest in community programs and schools. They sponsor your kid’s soccer team. As a small-business owner, your dollars are doing double duty; fueling our own business while lifting others around you. It’s a win-win that compounds over time.

Small Businesses Drive Innovation

Contrary to popular belief, innovation doesn’t just happen in big tech boardrooms. It happens in your neighborhood, at the startup down the street, the cafe experimenting with new menus or the mom-and-pop shop that digitized during the pandemic to survive. These businesses are agile, inventive and deeply tuned into local needs.

For example, during the pandemic, we launched a small-business grant program, not because we had extra money (we didn’t), but because we knew that if our small-business community didn’t survive, neither would we.

Real Estate Is A Local Game

After two decades in commercial real estate, I’ve learned that the health of a local economy is directly tied to its commercial corridors. When local businesses thrive, storefronts fill. Buildings stay activated. Property values stabilize. When they don’t, vacancy creeps in, and so do tax shortfalls and municipal challenges.

Coworking has a role to play here, too. My own company has been increasingly working with landlords to activate underused space by bringing in a mix of small businesses, remote teams and community-driven users. This kind of model works best when it reflects and supports the surrounding neighborhood. In other words, local works.

Buying Local Builds Belonging

There is something powerful about walking into a coffee shop where they know your name. Local buying creates more than transactions; it creates connection. Local buying builds relationships and creates accountability. It’s the difference between being a customer and being a neighbor.

In a world that’s increasingly digital and decentralized, supporting local businesses is a tangible way to stay rooted.

The Bottom Line

Buying local creates jobs, builds wealth and fuels innovation where it matters most, where you live and work. Through my own experience, I've discovered how important it is to build a business by embracing your regional roots. I believe the future of work is hyperlocal and that strong communities start with strong local economies.

So, the next time you order lunch, book a service or sign a contract, ask yourself: Can I go local? Your community and your business will be stronger for it.

This article was originally published on Forbes Business Council. Read all of Sarah's publications on Forbes here.