Can you feel it in the air? That comforting, exciting and nostalgic scent of the end of the year, the first snow arriving, the Christmas decorations invading the windows… The holiday season is coming, and it’s time to start looking for presents which we will place at the foot of our trees.
Who will we turn to then? Towards our small local businesses, or towards Internet giants or multinationals?
Recently I watched the movie You have a message, with Tom Hanks and Meg Ryan. It tells the story of an independent, family bookstore owner, established at the same address for 40 years, who suddenly finds herself in competition with a new store from a book giant. How can it compete with a giant that offers a wide variety of books at lower prices? The calculation is fast. But this woman fights in the name of what she believes to be the essence of small business: service, product knowledge, warm atmosphere and community.
Because local business is committed to its community. Moreover, did you know that each 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? This is what a recent study by the Canadian Federation of Independent Business (CFIB) shows. The vast majority of small retailers contribute to their community or province in at least one way and are the driving force behind our communities. They hire and train the next generation, offer unique products and personalized services, while strengthening a sense of community.
It’s not for nothing that more than 9 out of 10 Canadians love their small local businesses! Unfortunately, only 13% make most of their purchases there, according to a survey commissioned by the CFIB. As a result, 78% of small retailers say they are losing customers and revenue to larger companies.
In fact, most Canadians (87%) say they do most of their shopping at large retailers, either in-store or online.
The end of the film by Meg Ryan and Tom Hanks illustrates this trend: the small historic bookstore closes, and the multinational wins. Moral: city streets are becoming more uniform and we have to move around more to find our products or turn to the Web. Do we want to see our neighborhoods and our village hearts transform, to see the diversity and so important contribution of our independent businesses disappear?
There is something seductive and familiar about buying products from here, from people here. Not only are we injecting money into the local economy, but we are making an ecological gesture by reducing pollution linked to the transportation and delivery of goods, in addition to encouraging jobs close to home.
The loss of momentum in local purchasing can be heard on many lips and in numerous surveys in recent months. In fact, the forecasts for the end of the year are not encouraging for our SMEs: 40% of Canadians expect to spend less during the holidays compared to last year. Additionally, 34% will do more of their shopping at major retailers and online giants.
But, remember this: big companies won’t notice your purchase. The small business owner will notice this. In fact, he’ll be happy about it. It could even change his life.
As in any good Hollywood film, Meg Ryan finds love in her misfortune. But fiction is not reality. In real life, people running a local business don’t find a soul mate by closing up shop. Our entrepreneurs live in a completely different reality, much more fragile.
We have the opportunity to support small business owners during Small Business Saturday as a counterbalance to Black Friday. So, on November 25, let’s think about our small local businesses who continue to promote originality and difference when we prepare for the end-of-year holidays. Let’s think about our community and support our local entrepreneurs. Let’s celebrate our uniqueness and our know-how!