Although I'm not yet sure how deep and strong its roots are, there is a move afoot in this country to transition to a new, more-sustainable model of business. Business experts Paul and Sarah Edwards have encapsulated this movement in something they call the Elm Street Economy. According to Paul and Sarah, the Elm Street Economy provides jobs that last, services one can depend on, and a secure future in a strong community and a healthy environment ... where people come first. I personally believe that this trend towards a local focus on doing business (and away from national chains, franchises, and big-box stores) is gaining in momentum. It is therefore something every entrepreneur needs to consider when making plans for the future.
There are seven characteristics of the Elm Street Economy:
- Turning from expensive, polluting fuels toward clean, renewable, locally available energy.
- Relying on local resources to meet local needs.
- Dropping our role as shoppers for the opportunity to produce meaningful work.
- Living and working in and nearby our homes for ourselves and our neighbors.
- Becoming Jacks and Jills of all trades; master of one.
- Using a variety of means for exchange and investment.
- Choosing simple satisfactions over the burdens of excess.
While this trend is stronger in some communities than others, it's worth keeping an eye on no matter where you do business. As the Elm Street Economy plays a greater role in the places in which you do business, how will you respond? Will you wait until you have no choice but to respond, or will you choose to get ahead of this trend and respond now by making your own business more sustainable with an increased local focus? Should you take a closer look at where you source your products from -- replacing far-away sources with ones that are local? Will you make a commitment to conserving energy, polluting less, and recycling whenever possible -- boosting your bottom line in the process?
The choices you make today will have long-lasting consequences. Why not make choices that provide jobs that last, services one can depend on, and a secure future in a strong community and a healthy environment ... where people come first? That seems like a very smart choice to me.
Dollars spent with local business produce more bounce and benefit than money spent with non-local providers. Michael H. Shuman in his book Small-Mart Revolution describes a number of studies. For example, a comparison done for the City of Austin showed that: • $100 spent in a proposed Borders store would result in $13 in Austin economy circulating in the Austin economy • $100 spent at local bookstores puts $45 into the Austin economy Another study of three towns found : • Local businesses yield two to four times the multiplier benefit as comparable nonlocal businesses. So the development of stronger local economies is a goal people and governments can welcome.
There seems to be a strong surge in avoiding the big chains and buying local. However, the "mom-and-pop" stores have to provide (1) prices that are in the same ballpark as the chains, and (2) service that is better than the chains. Just as some people prefer to eat at McDonald's or Wendy's, some people will always prefer the comfort and familiarity and conformity of the chain stores.