Fed up with seeing local small businesses being ravaged by the economic downturn, some people are taking matters into their own hands. They’re trying to reverse the fortunes of mom-and-pop stores by becoming more organized in “buying local.”
– In Fort Myers, Fla., people driving by Clancey’s Restaurant saw this huge sign outside: “Support the local economy. Patronize locally owned businesses.” Local businesses there say that for every $100 spent at a chain or national business, only $14 stays in town, but when spent at locally owned businesses, the amount triples to $45. However, code enforcement officials made the restaurant take the sign down. The restaurant is currently working to get a permit to put it back up.
– A food bank in Humboldt County in California is trying to save the local economy with food stamps. Food for People is rolling out its “Bring a Million to Humboldt County” campaign, which aims to enroll everyone eligible into the food-stamp program. Businesses in the county could see an extra $12 million boost circulating in the local economy this year as food-stamp dollars get spent in local stores and local farmers’ markets. A study by the U.S. Department of Agriculture’s Economic Research Service found that every dollar spent in food stamps generates $1.84 in economic activity; another study by Moody’s Economy.com found that food-stamp dollar spending generates $1.73 in economic activity. Even Congress has realized this: the economic stimulus package passed earlier this year is giving Humboldt County an additional $6.25 million in food-stamp benefits, which could generate some $11.5 million in local economic activity. But the stigma of food stamps could hamper those plans: only 46% of those that are eligible in the county participate, translating to $14 million in food stamp money that goes unused annually.
–In Chicago, two entrepreneurs established a Web site this month, SupportREconomy.com, to sell $2 green “R Local Stimulus” wristbands to benefit designated 10 small businesses and charities in the area. The grassroots effort aims to donate 20% of the profits to local pharmacies and grocery stores. Since the launch in mid-March, 250 wristbands have been sold, said Joana Fischer, the co-founder.
– A trio of small-business owners in Detroit is creating a citywide currency called Detroit Cheers, $3 denomination bills. They’ve gotten the cooperation of more than a dozen city merchants to agree to accept Detroit Cheers as real money. Apparently, Detroit’s not the only one reviving the tradition of thousands of communities creating local currencies to spark hometown commerce. The Detroit News reports that the Detroit Cheers program is just one of 75 local currency systems that have sprung up recently in the U.S. Legal scholars say this is all legit, since the made-up bills don’t resemble federally issued money. People typically exchange federal dollars with the “local currency” at local banks, use that money to spend at local businesses, which then convert that money to real dollars at the bank. So far, the businesses that are participating in the Detroit Cheers program include a building and furniture design firm, a dog day-care center, a graphics designer, a carpenter, a nonprofit and several restaurants and bars. In nearby Traverse City, Mich., its local currency program is in its fourth year, currently bringing a total of $13,000 worth of currency circulating in the community. In another part of the country, BerkShares currency in the Berkshires area in southern Massachusetts has nearly $2 million worth of local currency since its inception three years ago.
Readers, what other local efforts have you heard about?
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