Tonight there was a great turnout to hear Stacy Mitchell, researcher on strong local economies and author of “Big Box Swindle.” She discussed the hidden costs of big box chain stores, including costs for public services, costs for consumers forced to do more driving to shop, net losses of local retail jobs, and the outflow of dollars from the local community. In contrast, smaller scale, local independent businesses require fewer public services, are rooted in the community and keep more dollars in the local economy.
She discussed strategies that communities have used to encourage independent local businesses including:
- Planning policies that encourage local independent businesses, such as zoning for retail near existing retail center and capping store sizes.
- Implementing local business development plans to identify desired businesses and then developing plans to attract these businesses. Strategies communities have used to attract specific businesses include contacting cooperatives and trade associations, contacting established businesses that are seeking a second location, finding latent local entrepreneurs through business plan competitions, starting businesses through community ownership, developing incubators or low cost space, mentorships for start up businesses, and providing financing programs for key businesses.
- Launching a “buy local” campaign to increase awareness about the benefits of buying from local independent businesses. These campaigns have been shown to change people’s shopping behaviors and have resulted in increased revenues for local businesses. (Note: many of our nearby businesses participate in Seacoast Buy Local.)
The event was sponsored by Seacoast Buy Local, SmartGrowth South Berwick and Kennebunk Savings Bank and got support from most of our local independent businesses.
Thanks to the sponsors of this event. It was great information and, judging by all the people standing around talking after the presentation, it generated lots of ideas and discussion.
Sobo Book & Bean has copies of Stacy Mitchell’s book, “Big-Box Swindle” and you can read articles by Stacy Mitchell about promoting local businesses at The Hometown Advantage, her online newsletter.
Ms. Mitchell’s presentation was knowledgeable and thought provoking. One thing that has happened over the past 15—20 years is a homogenization of the country. Various regions of the country were once very different: people dressed differently, restaurants served different types of food, architecture was different, and towns were laid out differently.
Traveling across the United States, today, one finds the same stores, the same restaurants, the same food items in grocery stores, and a populace that dresses, acts, and to a greater and greater extent looks and sounds alike. This is a loss to our culture. Regionality is a positive thing.
The program brought to us by the Economic Development Committee provided alternatives. Many were intriguing, such as the co-op mercantile that began in Wyoming. The one fault I found was a tendency to suggest that entrepreneurs could be supported and lead by a centralized entity. That might be my prejudice against government intruding in the domain of society, and not the intent of either Ms. Mitchell or the Committee, and I would be happy to discuss those implications.
It is in the nature of an entrepreneur to see a niche and fill it. The dangers in opening a sole proprietorship or partnership small business are rampant. Most fail. To go into business for oneself means that there will be no paycheck at the end of the week. A business opens its door and hopes for customers. If none come, there is no pay. An employee will be paid according to any bargain that has been reached, but the owner will not. How does a town encourage someone to open a business with no guarantee of success? It cannot.
The thing that government at any level can do is keep out of the way of small businesses. Zoning can restrict the placement and types of enterprises that can grow in a town. Any aid given to one business is bound to negatively affect another.
The immediate reaction of one of my neighbors when I described some of the ideas I gleaned from the evening was, ‘Oh! We could have a farmer’s co-op! There are lots of people with small gardens who have surpluses they would like to sell. We could have a Strawberry Festival that lasts all year! We could…” The enthusiasm was rampant.
The operative word in her response was ‘We.’ It has been suggested that the Committee has the wrong title for what we want to accomplish in South Berwick. Instead of Economic it should be Community Development.
I am not too fussy about semantics, here. It is the Community, which is responsible for the Economic development within it.
I appreciate the efforts that this committee has done in the past and hope we go forward seeking substantive ways to encourage the citizens of South Berwick to seek interesting ways to find in fill the needs of their neighbors.