Canada/Every dollar spent in a small business keeps $0.66 in the local economy, compared to $0.11 in a multinational English company.
According to the Canadian Federation of Independent Business (CFIB), on average, every dollar spent in an SME keeps $0.66 in the local economy, compared to $0.11 when the money ends up in the hands of a multinational.
A public opinion poll conducted by Angus Reid on behalf of CFIB shows that many Canadians overestimate how much of every dollar spent at a multinational is reinvested locally, while underestimating the contribution of SMEs to the local economy. Respondents to this survey believe that an average of $0.37 remains in the local economy for every dollar spent at a major retailer with a physical location, such as Walmart. In their opinion, this contribution would average $0.38 per dollar spent at an SME.
"You might think that large retailers contribute as much to the local economy as SMEs, but that's not the case at all. Today, our data confirms the considerable role of local purchasing for our communities. SMEs contribute to the vitality of neighborhoods, in addition to using local suppliers to source goods and services. Their contribution to the local economy far exceeds that of large corporations. That's why governments need to put SMEs at the heart of their public policies. In this regard, it is urgent that the federal government extend the deadline for repayment of loans from the Canada Business Emergency Account. Closer to home, at the municipal level, we need to accelerate the reduction of red tape," says CFIB vice-president François Vincent.
Launched in 2020, the #JeChoisisPME campaign encourages consumers to buy local to support the businesses that make their communities so charming. The initiative is sponsored by Scotiabank, Interac and Chase Payment Solutions.
"Every small business purchase contributes to the viability of our communities. We encourage consumers to make a difference by supporting our #JeChoisisPME campaign and entering our #JeChoisisPME - Un gros MERCI! contest in October. Buying local generates economic spin-offs and enables SMEs to give back to the community, whether by providing first-time work experience, sponsoring local field hockey teams or donating to food banks. It's important to remember that two-thirds of every dollar spent in a small business helps keep the local economy thriving and our communities vibrant," adds Alchad Alegbeh, CFIB Research Analyst.
CFIB offers small business owners a new downloadable digital toolkit to promote buying local, including a printable poster and customizable digital images for social media. To learn more about how you can support SMEs, visit I ChooseSME.ca.
We'll be releasing a report this fall with detailed data on retailers' contribution to the local economy.
The information presented in this press release comes from the following sources:
- The final results of an online public opinion survey conducted by CFIB from July 13 to 19, 2023 among a representative sample of 1,504 Angus Reid Forum member Canadians. The survey was conducted in English and French. Results were weighted by education, age, gender and region to match Census demographics. In comparison, for a probability sample of this size, the margin of error is +/- 2.5%, 19 times out of 20.
- The final results of the Retailers' Contribution to Their Community Survey, conducted online from May 17 to June 14, 2023, among 588 CFIB members in the retail sector. By way of comparison, for a probability sample of this size, the margin of error is +/- 4.9%, 19 times out of 20.
- CFIB commissioned research firm Civic Economics to determine how much of each dollar is reinvested locally (i.e., stays local) when consumers shop at different types of businesses. In addition to its own methodology, this organization drew on the results of CFIB's Retail Community Contribution Survey to calculate local reinvestment figures. This research was inspired by a series of studies conducted by Civic Economics, including a 2019 study conducted in collaboration with LOCO BC. CFIB would like to thank LOCO BC for their collaboration in updating and expanding this research to the rest of Canada.
The #JeChoisisPME campaign encourages consumers to buy local to support the SMEs that make their communities so charming. Launched in 2020 by the Canadian Federation of Independent Business (CFIB), the annual campaign is now in its4th year. This initiative helps to highlight the important role of SMEs in the local economy.
Scotiabank is one of the leading banks in the Americas. In the spirit of its corporate mission, "For the Future of All", Scotiabank contributes to the success of its customers, their families and their communities by by offering advice and a wide range of products and services, including personal, commercial and corporate banking, private banking, investment banking, wealth management and capital markets services. As of April 30, 2023, Scotiabank had over 90,000 employees and assets of over $1.3 trillion. Scotiabank shares are listed on the Toronto (TSX: BNS) and New York (NYSE: BNS) stock exchanges. For more information, please visit http://www.banquescotia.com.
Interac enables Canadians to transact digitally with confidence by providing payment and value exchange services. Security is at the heart of everything we do to contribute to the future of money, data and verification in Canada. Through our privacy, fraud mitigation, governance, verification and authentication services, we help ensure the transactional security of our Canadian customers. Through its network of nearly 300 financial institutions, Canadian consumers use Interac products an average of 20 million times a day for monetary transactions. Interac is committed to corporate culture and citizenship based on the principles of responsibility, diversity and inclusion. The company is proud to be one of Canada's largest and most trusted financial brands. Visit interac.ca.
Chase Payment Solutions, a subsidiary of JP Morgan Chase headquartered in Toronto, Ontario, is a global leader in payments for businesses of all sizes. More than 110,000 Canadian commercial establishments rely on Chase for their payments. When you choose Chase, you choose a leading provider that processes more than $2 trillion in annual merchant transactions worldwide. Chase Payment Solutions brings you over 20 years of Canadian expertise and over 200 employees across the country. Visit chase.ca.
CFIB (Canadian Federation of Independent Business) is the country's largest association of small and medium-sized businesses, with 97,000 members in all sectors and regions. It aims to increase the chances of success for SMEs by defending their interests with governments, providing personalized resources and offering exclusive savings. Visit fcei.ca to find out more.
Source: www.newswire.ca
