Here's an excerpt from an excellent article by the American Independent Business Alliance-"The Benefits of Doing Business Locally".

.......It's time to consider the real costs to a community that loses its local business base. Independent local businesses employ a wide array of supporting services. They hire architects, designers, cabinet shops, sign makers and contractors for construction. Opportunities grow for local accountants, insurance brokers, computer consultants, attorneys, advertising agencies and others to help run it. Local retailers and distributors also carry a higher percentage of locally-made goods than the chains, creating more jobs for local producers.

In contrast, a new chain store typically puts in place a clone of other units, eliminates the need for local planning, and uses a minimum of local goods and services. In a company-owned store, the profits are promptly exported to corporate headquarters.

***These factors lead local independent merchants create a multiplier effect in the local economy of 3 - 3 1/2 times that of a chain outlet (the multiplier difference in non-retail businesses is generally lower, but no less important).

****While many communities focus on sales tax revenue, we need to remember that the one-time tax revenue is only one part of the economic picture.

"......http://reclaimdemocracy.org/independent_business/local_business_benefits.html