The Waikato is a small place. I imagine that, like me, most readers are regularly reminded of just how small by chance interactions with someone who randomly knows a close friend or family member. That small world is a critical strength and strategic advantage right now.
Phil Mackay
We can have a big impact in this small world, by consciously looking after each other and supporting local businesses.
The ‘local multiplier’ effect is well-documented; money spent with local businesses is re-spent in the community more times before leaving. This is especially true of small and medium independently owned businesses.
As individuals our personal spending habits might seem insignificant. But aggregated, the impact is substantial. If each adult in the Waikato – approximately 400,000 – consciously chose to spend just $5 each week with a locally owned business, the direct spend would be worth $104 million to the local economy.
Shop local. Photo: Sandra Filipe, pexels.com
Including the multiplier effect of this money recirculating, the impact could be up to $300 million. This is because every local business is likely to use local accountants, lawyers, tradespeople, IT, marketing specialists, etc. Those local suppliers in turn have their own local suppliers, and also pay local wages and local rates. Their staff spend money with local retailers, and buy coffee from the local coffee shop. And so it goes.
While I’m on coffee shops, having spent half my life in that world, I have very little patience for cafes who are buying their beans from Auckland, Wellington, or even overseas. We have world-class coffee roasters like Rocket Coffee – and others – in the Waikato, there is absolutely no justification for not supporting local.
As businesses, challenging (my favourite euphemism) economic times should inspire us all to review our own suppliers. Is there an opportunity to target your spending with local businesses? It’s also a great time to be making referrals and testimonials; if you’ve had a great experience or relationship with another local business, tell that story as loudly as you can.
Finally, we should expect that our large institutions, especially those who are spending public money, are applying a similar degree of rigour to their spending decisions.
This applies especially to local councils. Most councils, at the governance level, are on board with the idea of supporting local suppliers. But at the delivery level, this sometimes means only a token 5-10% weighting for ‘local attributes’, which often relies on blunt measures like the number of local employees. We can and should do better.
As noted earlier, a small local supplier is far more likely to use other local suppliers, compared with a regional office of a large national or multinational company. Local business owners live in the community. That social accountability shapes behaviour and guarantees better value for money.
Buying local is better value for money, and better value for our community.
Buy local, invest in your community. RDNE Stock project, pexels.com
