Are you familiar with the term “homogenisation”? It’s the process where something is made equal or uniformed in composition. In the world of business, this reflects the diminishing presence of services and one-of-a-kind products provided by local businesses. With national corporations taking over many operations, such as the case of chain superstores, the sense of community is lost. What you see in one place, you basically see everywhere.
There is a significant economic impact to this. Giant corporations do mean more investors coming in. But several studies have shown that it is local business that sustains the community better. Beyond this, it’s also local business that builds stronger ties between the locals.
Among the advantages of local businesses include:
Providing more jobs to the community, where sometimes, the benefits and wages are far more competitive.
National corporations or chains often hire people from other places to build and then run the company. They bring in contractors, architects, advertising executives, lawyers, accountants and their management team from outside the community, when these are jobs that can also be done by the locals.
Using resources available locally.
Local businesses rely on each other to meet its supply and demand. The neighbourhood grocery, for example, taps community farmers and other independent vendors for supplies. Hence, revenues go back to the community. Big companies, on the other hand, export from their headquarters based in larger and more progressive cities, which means, they are the ones that benefit from these earnings.
Encouraging entrepreneurship from residents.
Families can move from low-earning jobs to concentrate on their locally owned business, and with the community’s support, successfully improve their income and economic status.
Offering variety of choices.
While it’s true that chain stores have larger inventories, the multiplicity that local merchants and vendors offer is the kind of diversity these bigger companies cannot match. Invariably, chain stores often dictate what you can buy or get from their stores, regardless of how many these products are.
With local businesses, there is involvement and concern for the welfare of the residents, as many of its owners serve on boards of community groups. There are social advantages on top of the economic advantages that national corporations do not bring. Some chains stores do give back to the community and show that they are involved, but community interest is the least of its priority.
Mayvin Training is so incredibly focussed and proud to be able to support many local businesses. We believe they are vital to the success and sustainability of the many towns and cities throughout Australia.