Buying Local Can Improve Economies: The Example of Michigan (And a Small City)

Local businesses play a vital role in retaining wealth within a community and dispersing it more broadly through local supply chains and social networks. As we learned from COVID-19 and other market disruptions, sourcing a portion of goods, food, and essential supplies from local entities strengthens supply chain diversity and resilience. It also increases incomes, tax revenue, and wealth.

Fostering entrepreneurship and growth-oriented businesses not only generates new wealth for communities but also keeps the economy regenerating. Throughout the business lifecycle, a steady stream of new enterprises is essential to introduce fresh ideas and maintain economic vitality.

Economists often refer to this as Creative Destruction—the process by which old businesses are replaced by new ones, driving innovation and growth. For example, small towns like Escanaba and Gladstone have benefited and could benefit more from additional start-ups to capitalize on their growing investment (industry and local) and tourism sectors. A typical creative destruction business journey might begin in a downtown storefront as a start-up, expand into an industrial complex, sell to national and international markets, and—perhaps decades later—eventually close, making way for the next wave of entrepreneurs.

One study found that if just 10% of products were purchased locally in Michigan, it could create 12,000 new jobs and generate $1.1 billion in economic activity. Notably, the study also provided a transparent explanation of its survey methods.

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Daily Press-Study Supports Buying from MI. Retailers