Small business delivers $50 billion to local economy

The amount of money that small businesses reinvest back into their local communities is on the rise totalling $50 billion this year according to the American Express The Economy of Shopping Small report.

This equated to 45 cents out of every dollar spent by small businesses going back into the local economy by way of salaries, payments to local suppliers and support for charities, schools and sponsorships.

The figure is up almost 30 per cent on 2017 in which SMBs injected $38 billion into Australia’s local economy.

This trend, coined the ‘Boomerang Dollar’ by American Express, demonstrates the crucial role that local businesses play in Australia’s Prosperity and comes during the month of Shop Small, a national movement to shine the spotlight on the importance of small business and encourage Australians to walk through their doors.  

Lisa Belcher, Vice President of Small Merchants for American Express says, “Australian small businesses deliver a whole host of intangible benefits to local communities such as their sense of character and rich diversity, but this figure acknowledges their significant monetary contribution.  It proves that it’s essential that consumers make ‘shopping small’ part of their regular shopping routine and a reminder that every dollar spent with a small business makes an impact.”

The Economy of Shopping Small: Back Your Backyard report reveals that on average, small businesses give $10,000 each year to local charities, plus a similar amount to schools, sporting clubs and local group and event sponsorships. 

Two-thirds of consumers acknowledge their contribution to local groups, initiatives, events and schools, and 81 per cent say that local businesses foster a sense of community. 

Learn more about Shop Small:www.shopsmallaustralia.com

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Cec is the managing editor of KBB. She is a multimedia professional with over fifteen years experience as an editor on titles as diverse as SX, CULT, Better Pictures, Total Rock, MTV, fasterlouder, mynikonlife and Fantastic Living. She has spent the past four years working as a news journalist covering all the issues that matter in the political, health and LGBTIQ arena. She is the Head of Content at Pinstripe Media and a recent convert to the world of small business.

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