By this point you’re wondering why I am throwing all of these statistics at you. You’re probably asking yourself why it matters where the dollars end up. Beyond that some of you might of already thought to yourself that you would love to support local businesses, but you cannot afford to because the prices are higher and most of them aren't as convenient to do business with.
Local businesses have an impact on keeping money locally partially through employment. This means the people who see the return of this money first hand are the local people in your community are the people employed by these businesses. These people are not nameless faceless people located somewhere else around the country and world, these are the people in our community, our families, our neighbors, our friends.
So now about higher prices; yes these business often times need to have higher prices to be able to stay in business. They do lower a volume, which means they don't have the purchasing power with their vendors, so they have to pay more for the products. They pay their employees more, so that means they need a bit higher margin to stay in business. What you get for this is improved service; a voice that matters plus you get to see an improved local economy.
In doing this you will improve the local community and provide a more level playing field for business and individuals alike in this unbalanced economy. This does not mean you need to spend every dollar locally to make an impact, just spending 10% locally makes a significant difference.