'It’s the American way': Embrace local multiplier effect by supporting small businesses

‘It’s the American way’: Embrace local multiplier effect by supporting small businesses

Posted by Admin May 23, 2024 Bussiness

Steph West
| Special to the Times Recorder

ZANESVILLE − You’ve probably heard it said before — when you spend local, you’re making a greater contribution to your community.

That’s important to remember during Small Business Month in May as localities everywhere celebrate the owners who make our communities stronger.

“It’s the American way,” said Dana Matz, president of the Muskingum County Chamber of Commerce. “In our community, our businesses are very supportive of not just the chamber, but of local schools, little leagues and local entities as a whole. For every dollar spent at local and small businesses, it is then (rolled over in our community).”

Matz is referring to what’s called the local multiplier effect. For those who study the phenomena, what they’ve discovered is that, on average, every dollar you spend at a locally owned —typically small — business, is turned over two to four more times in your community than money spent at a big box store.

“Small business owners are often our friends, our neighbors, and our families and that’s what keeps the economic engine running,” said Matz.

He’s right. According to the Small Business Administration, there are 33 million small businesses (500 employees or less) in the United States, which is 99.9% of all American businesses.

Those numbers translate to Muskingum County as well, where more than 90% of the Chamber’s members are small businesses (10 employees or less), according to Matz, who added that the state of Ohio reported 98 percent of Ohio businesses are also small businesses (49 employees or less).

“We are very lucky to have a very diverse make up of businesses. Your industrial, your retail, your restaurants. It’s a big advantage for us,” said Matz. “There are so many entities. We don’t have to survive on big industry.”

That’s true so long as consumers recognize small buinesses may not offer the same perks as a big box store.

“In today’s society, when we can pick up our phone and order pretty much anything we want, I think the importance of celebrating local and small business for one month a year is a reminder to not forget about the hard work they put in,” said Matz. “Sometimes a small business may not have the ability to sell on a website or a marketplace, but it’s important to remember in our community we still need to support local in a way that makes sense for them.”

The chamber is one mechanism for businesses to find support. For example, owners of Ohi:yo Pepper Company noted how the Zanesville Foodworks Alliance was instrumental to their small business.

“That really helped us get off the ground,” said owner Thera Snyder. “It would not be feasible for us to do what we’re doing without them.”

Snyder said Ohi:yo Pepper Company makes all their products in one of the leased commercial kitchens at Foodworks Alliance in Zanesville.

And Foodworks Alliance is what came out of the local business incubator led by the chamber.

“We were heavily involved in the creation of Foodworks Alliance,” said Matz. “The food kitchen was a highly successful entity.”

And that’s the goal of the chamber, he said, to make small businesses as successful as they can be.

“If we don’t have the answer, we have the person who has the answer,” said Matz. “After that, it’s up to consumers to support local every chance they get.”