{"componentChunkName":"component---src-templates-article-index-jsx","path":"/blog/local-business-statistics","result":{"data":{"pageRelatedPosts":[{"path":"/blog/local-business-statistics","context":{"post":{"date":"2018-06-29T10:14:06","title":"13 Essential Local Business Statistics","databaseId":"34470"}}},{"path":"/blog/what-percentage-of-small-businesses-fail","context":{"post":{"date":"2018-04-11T10:34:59","title":"What Percentage of Small Businesses Fail? (And Other Need-to-Know Stats)","databaseId":"15902"}}},{"path":"/blog/effects-of-minimum-wage-increase-on-small-businesses","context":{"post":{"date":"2018-02-15T09:51:16","title":"The Effects of Minimum Wage Increase on Small Businesses, Explained","databaseId":"28879"}}},{"path":"/blog/2017-spotlight-women-entrepreneurs","context":{"post":{"date":"2017-10-23T12:00:19","title":"State of Small Business Lending: 2017 Spotlight on Women Entrepreneurs","databaseId":"24250"}}},{"path":"/blog/state-of-business-lending-q3-2017","context":{"post":{"date":"2017-07-24T09:00:27","title":"The State of Business Lending in 2017, According to Small Business Owners","databaseId":"21581"}}},{"path":"/blog/spotlight-on-entrepreneurship","context":{"post":{"date":"2017-06-23T10:20:31","title":"Infographic: Spotlight on Entrepreneurship in the USA","databaseId":"20837"}}},{"path":"/blog/gender-bias-small-business","context":{"post":{"date":"2017-06-23T04:11:35","title":"Gender Bias in Small Business: How People Unknowingly Judge Businesses Owned by Women","databaseId":"19117"}}},{"path":"/blog/best-states-women-entrepreneurs","context":{"post":{"date":"2017-03-30T12:23:58","title":"New Study: The Best States for Women Entrepreneurs in 2017","databaseId":"17579"}}},{"path":"/blog/small-businesses-job-creation","context":{"post":{"date":"2017-03-29T10:35:30","title":"How Many Jobs Do Small Businesses Really Create?","databaseId":"17543"}}},{"path":"/blog/cities-entrepreneurship","context":{"post":{"date":"2017-01-08T12:55:15","title":"How to Start a Business in the Top Cities for Growth Entrepreneurship","databaseId":"15483"}}},{"path":"/blog/best-cities-in-new-jersey","context":{"post":{"date":"2016-11-02T11:32:22","title":"The Ultimate Countdown: New Jersey’s 5 Best Cities for Entrepreneurs","databaseId":"12835"}}},{"path":"/blog/the-state-of-online-small-business-lending-q2-2016","context":{"post":{"date":"2016-09-06T06:00:22","title":"State of Small Business Lending: Spotlight on Women Entrepreneurs","databaseId":"10781"}}}]},"pageContext":{"secondaryNav":{"active":false},"disclosure":{"content":"

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

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So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

"},"editorialNote":"Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on the page. However, this does not influence our evaluations. Our opinions are our own.","post":{"databaseId":34470,"id":"cG9zdDozNDQ3MA==","date":"2018-06-29T10:14:06","uri":"local-business-statistics","postId":34470,"title":"13 Essential Local Business Statistics","content":"

Analysts and pundits alike often contrast small, locally owned Main Street businesses to gigantic, faceless Wall Street financial firms. But competitively, their true foils are actually big-box stores including Costco, online retailers like Amazon, and large brick-and-mortar retailers like Walmart and Target. Local consumers flock to these corporate competitors because of low prices and the large selection of products available—sometimes at the expense of local businesses.

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Main Street businesses, according to the Kauffman Index definition, are local, established businesses more than five years old with fewer than fifty employees.[1] These businesses are at the heart of many communities, and with the rise of mega-retailers, many towns have organized to back their local stores. With “buy local” or “local first” campaigns, towns like Tucson, Arizona encourage residents to keep locally owned and independent businesses thriving at the expense of deals at larger retailers.[2]

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As the following statistics make clear, Main Street businesses provide a slew of community benefits. They generate greater investment back into their local area, higher commitment from their workers, and much more. As a consumer in your own community, here’s what you should know about local businesses.

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\"local-business-stats\"

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1. Lots of Americans depend on their own Main Street businesses for their own—and their family’s—livelihood.  

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2. Shopping at a local business is better for the environment than patronizing a big-box store.

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3. More money stays in your community when you shop local.

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4. More than a quarter of small business owners are immigrants.

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\"local-main-street-business\"

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5. Low sales or limited cash flow is the main reason that local firms close.

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6. Americans still spend more in-store.

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7. Online search and reviews are critical for local business success.

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8. Many local businesses have a Facebook page but few use Facebook ads.

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9. The top reason shoppers choose local stores are unique product selection.

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\"local

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10. Workers are more committed to locally owned firms.

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11. Minnesota is the best large state for Main Street entrepreneurship…

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12. …and South Dakota is the best small state for Main Street entrepreneurship.

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13. Pittsburgh is the best metropolitan area for main street entrepreneurship.

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\"local

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Although few consumers can shift their spending to Main Street businesses exclusively, buying a cup of coffee at the local coffee shop instead of Starbucks, or visiting a trusted garage instead of Pep Boys can be a boon to your local economy and even the environment. As the statistic on online search showed, even a positive Google or Yelp review can lead to more local business for your home community.

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A great Main Street business community can’t be developed overnight—but you can work toward it through local purchasing campaigns and conscious patronage by residents. Wielding these convincing facts should certainly help.

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Related Data & Analysis

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Read more helpful business-related statistics and data:

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Article Sources:

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  1. Kauffman.org. “Historical Kauffman Index Reports“
    2. \n
  2. VisitTuscon.com. “Local First Arizona“
    3. \n
  3. GemConsortium.org. “GEM 2017 – 2018 Global Report“
    4. \n
  4. Huffpost.com. “Why Buying Local is Worth Every Cent“
    5. \n
  5. LocalFirst.com. “Why Buy Local“
    6. \n
  6. AS-COA.org. “Bringing Vitality to Main Street“
    7. \n
  7. SBA.gov. “Why Do Businesses Close?“
    8. \n
  8. SmallBizTrends.com. “Omni-Channel Retail Report Shows Results of Big Commerce Study“
    9. \n
  9. BrightLocal.com. “Local Consumer Review Survey“
    10. \n
  10. GeoMarketing.com. “Facebook Starts 2017 with 65 Million Local Business Pages“
    11. \n
  11. SmallBusiness.com. “Here’s Why 93% of Shoppers Prefer Small and Local Retailers“
    12. \n
  12. ResearchGate.net. “Small, Local, and Loyal: How Firm Attributes Affect Workers’ Organizational Commitment“
    13. \n
  13. Kauffman.com. “2016 The Kauffman Index Main Street Entrepreneurship: State Trends“
    14. \n
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Nic is an associate at Fundera. He specializes in partnerships and research-driven stories to help small business owners grow and thrive in their industries.

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