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Aug 30, 2023

Canadians underestimate how supporting local business boosts local economy

For every dollar spent at a small business, 66 cents on average stays local, says data from the Canadian Federation of Independent Business (CFIB). Conversely, only 11 cents of every dollar spent stays in the community when consumers shop at a large multinational business. 


The report shows 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," says 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." 


In 2020, CFIB launched the #SmallBusinessEveryDay campaign to encourage 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. 

Business owners are encouraged to download CFIB's new digital toolkit, which includes a printable poster and customizable social images, to promote local shopping at their store. For more information on how to support small businesses, check out SmallBusinessEveryDay.ca

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