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Sixty-six cents of every dollar spent at a small business stays local: CFIB poll
August 30, 2023 By Bakers Journal
For every dollar spent at a small business, 66 cents on average stays local, according to new data from the Canadian Federation of Independent Business. Conversely, only 11 cents of every dollar spent stays in the community when consumers shop at a large multinational business.
An Angus Reid Group public opinion poll conducted on behalf of CFIB reveals that Canadians greatly overestimate how much of each dollar they spend at multinational companies is reinvested locally, while underestimating small businesses’ contributions.
When asked to guess how much money stays local when shopping at a large retailer with a physical location, such as Walmart, on average Canadians said 37 cents. Respondents also thought that 38 cents on average stays in the community when buying from a small business.
“Canadians assume the local contributions by large retailers and small businesses are on par, but the difference is significant. The importance of what shopping local means to our communities can’t be stressed enough,” said Ryan Mallough, CFIB vice-president of legislative affairs for Ontario. “Small businesses support a whole local ecosystem. They source their goods and services from other local businesses in a way the retail giants just don’t. This is why governments at all levels need to focus on policies that support local businesses, from extending the repayment deadline for the Canada Emergency Business Account loan to cutting red tape in local bylaws.”
The #SmallBusinessEveryDay campaign
Launched by CFIB in 2020, #SmallBusinessEveryDay encourages Canadians to support the independent businesses that make their communities unique by keeping their loonies local. It is sponsored by Scotiabank, Interac Corp. and Chase Payment Solutions.
“Every time Canadians choose to shop at a small business, they ensure the viability of their communities. This is why at CFIB, we encourage all Canadians to celebrate #SmallBusinessEveryDay and take part in our annual Big Thank You Contest this October,” said Taylor Matchett, Senior Research Analyst at CFIB. “Shopping at a small business enables it to give back, whether it’s by hiring apprentices, sponsoring local hockey teams or donating to food banks. Two-thirds of your dollar helps keep our economy thriving and your community vibrant.”
Business owners can download CFIB’s new digital toolkit, including a printable poster and customizable social images, to promote local shopping here. For more information on how to support small businesses, check out SmallBusinessEveryDay.ca.
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