More Resources

Money grows on trees; when you buy locally grown and produced products.

Utah Business • Feb, 2008 • The money cycle is a way of describing the way money flows through an organisation

Too often, consumers spend their money on goods or services with no local presence, resulting in any increased benefits immediately leaving our community. Concern for the Utah economy is not the lack of resources or money flowing through our neighborhoods, but what consumers, public services and businesses do with that money.

[ILLUSTRATION OMITTED]

Suppose that we introduce $1,000 into our community. These dollars are spent on local goods and services. Each of the local vendors or service providers uses the money they received to purchase other local goods and services. This cycle repeats itself many times before the money is finally used to import goods or services from outside the region. In this case, if the cycle happened eight times, that would be like introducing $8,000 into the community. See how the dollars pile up?

Now picture that money being spent immediately with businesses headquartered in other regions on imported goods. These dollars have very little effect on our community. One thousand dollars would only have the effect of $1,000, rather than several thousand.

Purchasing products from non-local sources can be compared to strip mining. Strip mining is controversial, jeopardizes the environment, and is expensive or impossible to reclaim. Only the expanded national businesses benefit, and local communities are damaged. Outside businesses are successful in finding our resources, taking the cash and running with it. On the other hand, buying local products and supporting local business can be likened to sustainability and growth in the neighborhood economy.

Additionally, consumers who make the choice to share in the local shopping practice feel good about what they are doing and become promoters or "localvores" that build a strong sustainable food and service base. These promoters share values, vision and actively endorse this culture to their friends. Localvores solidify their experience by continuing to look for opportunities to support and shop at local stores and use local services when it is possible.

Are you up to the challenge? Do you want to reduce your environmental footprint while supporting local farmers, food production facilities, restaurants and grocery chains? People who are advocates of purchasing local products recognize there are environmental, economic, political and physical benefits. Their concern is to keep small farms viable, create community food security and control a local food supply, rather than forfeit these rights to multinational companies concerned only with short term profits.

What is a "localvore?" In the same vein that a carnivore eats meat, and a herbivore eats plants, a localvore is a person who eats locally grown and produced food and supports local businesses.


COPYRIGHT 2008 Olympus Publishing Co. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2008 Gale, Cengage Learning. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


Browse by Journal Name:
Today on Entrepreneur
Related Video

e-Business & Technology
Franchise News
Business Book Sampler
Starting a Business
Sales & Marketing
Growing a Business
E-mail*:
Zip Code*: