The Cities Where People Shop Small
Overall, the cities with the greatest share of spending at small and medium-sized businesses are very large, wealthy ones, according to the data. They include New York, Los Angeles, Chicago, and San Francisco.
In the New York metropolitan area, for example, consumers spent three-quarters of their money at small and medium-sized enterprises, (defined as businesses with less than 8 percent market share in their category and specific market). While New Yorkers were spending their money at independent bodegas and coffee shops, though, residents of Columbus, Ohio were spending much of their money at bigger businesses, like McDonald’s or Target, according to the report. Only 54 percent of money spent by Columbus consumers went to small and medium-sized shops.
.. Providing consumers with more diverse retail options may be good for the local economy, too. Every $100 spent at locally based business in Portland, Maine, contributes an additional $58 to the local economy, a2011 study showed. By contrast, every $100 spent at a chain store yields just $33 in local impact.
.. A separate study found that if consumers in Kent County, Michigan, redirected 10 percent of their spending to locally owned businesses rather than spending it at chain stores, they’d help create $53 million in additional payroll and 1,600 new jobs.