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