You’ve no doubt heard the phrase: ‘Shop Local’ but have you really thought about why it matters? As we head into the summer months and the festive time of year, there’s a lot of pressure to spend money on gifts, entertaining and looking our best; let’s be thoughtful about where and how we part with our hard-earned bucks. You don’t need to go very far to make a difference.

Did you know that over 97 per cent of Australian businesses are small and employ fewer than 20 people? Plus, over 42 per cent of Australia’s workers are employed by small businesses, according to the latest available figures. Small companies play a crucial role in every industry sector. Australian Small Business and Family Enterprise Ombudsman Bruce Billson describes small businesses as the “lifeblood” of Australia’s communities.

As for local businesses — the ones that are owned by community members and often family owned — they tend to funnel their profits back into the local economy in a phenomenon known as the Boomerang Dollar. In other words, when you spend a dollar with a local business, a portion of that flows back into the community when the business pays staff salaries, purchases local supplies, engages local services and contributes to local groups. Studies called ‘The Economy of Shopping Small’ by American Express (Amex) in 2017- 2019 showed that in Australia, the Boomerang Dollar was worth between 42c and 45c. That’s nearly 50 per cent of spending that stays local.

The most recent Australian research by Amex shows that most people want to shop local, with 80 per cent saying they care about the success of small businesses in their local community. Importantly, 77 per cent reckon they will get better customer service and 49 per cent think they’ll get better quality if they shop local. Over 60 per cent said they are even prepared to pay a bit more — within reason — when shopping with a local business, which is great because they are probably correct that they will get better customer service and better quality from a caring local, right?

There’s more. If you shop with a small, local business you are encouraging innovation because they have to work smart to compete with literal billionaires. Plus you’re reducing carbon footprints when you and the product don’t have to travel long distances to be united. (There are other environmental considerations but since you’re being a thoughtful shopper, you’ll presumably do your research on those too).

Finally — and crucially — by spending locally, you are increasing social interactions and improving community well-being. You’re being served by a person you’ll probably bump into in other places around town. They’ll see that you value their handiwork or service. Connections are formed and the community is a better place.

Most things that you need in the lead-up to Christmas can be found in our brilliant, bustling, thriving Central Victorian small businesses and there are so many reasons to support them. All you need is local.

For stats and sources (the most up-to-date available) visit: tinyurl.com/5ferm6w8 and tinyurl.com/yt3vnv4c.

This article appeared in the Tarrangower Times, 28 November 2025.