How local is local?

The question reminds me of a similar question I faced as a gardening enthusiast.  I concentrated on growing native plants, but the question arose: how native is native?  On one end, some gardeners would argue only plants that our first settlers would've found growing in what is now the garden is native.  On the other end, as long as the plant could be found in the state, it is native.  Most gardeners fell somewhere in between, usually narrowing the definition to a smaller geographical area such as the county or a hundred-mile radius where the garden was located.  Purists, however, argued there was no such thing as a native plant since most of our native plants have the genes of non-native or hybridized cousins. 

The same range of thought exists with what one defines as a locally owned and operated business.  Some argue that only businesses within or very near one's town is a local business.  Others argue that businesses founded in the state are a local business.  Most people fall somewhere in between.  Purists, however, argue there is no such thing as a locally owned and operated business as most businesses require the services or products from outside of the region in order for the owners to conduct their business.

The answer to what defines a locally owned and operated business if further complicated by other factors.  Some would argue that a locally owned franchise is a locally owned and operated business.  Others would argue that a business, whose owner has moved out of state but still maintains the business locally, is a locally owned and operated business.

Now here is a trick question.  Is Target a locally owned and operated business?  Most people would argue that no, it is a national chain, the kind of store shop local enthusiasts avoid.  People in Minneapolis, MN, however, might argue that, for them, Target is a locally owned and operated business as the original Target began there in 1902 as the Dayton Dry Goods Company.  Just because the store changed its name to Target doesn't make it any less local.  Others would argue that despite its history, Target is now a publicly owned company with no shareholder holding more than 9% interest in the company, and the shareholders are spread out all across the country so it can no longer be considered a locally owned and operated company.

Now, here is another trick question.  Is Walmart a locally owned and operated business?  Like people in Minnesota who might argue Target is a locally owned and operated business, people in Benton, AR might argue that Walmart is a locally owned and operated business.  Unlike the people in Minnesota, though, the people in Arkansas could arguably be more correct in their claim.  The Walton family, founders of Walmart, hold a 48% stake in shares of the company, making them the majority owners.

There are probably as many definitions to "locally owned and operated" as there are people who try to answer the question, how local is local.  Shop Local Delmarva considered all the ranges of thought on the subject, but discovered the definition came down to two key questions: what sort of business keeps most of its money circulating within the local community and what is the "local community"?

With those two questions in mind, Shop Local Delmarva first defined "local community" as all of Delmarva.  The reasoning was based on the fact that most of Delmarva is rural in nature and one couldn't expect to find everything he/she would need in his/her local town.  One may need to travel thirty miles or more to the next nearest town, but he/she could still support the local businesses there instead of relying on the national chains.

Defining what sort of business keeps most of its money within the local community was a bit trickier to define.  Operating on the statistic that for every $100 spent at a locally owned and operated business, $68 remains in the community as opposed to $13 that remains out of the same $100 spent at a national chain, Shop Local Delmarva defined "locally owned and operated business" as one that is most likely to meet the $68 statistic.

Shop Local Delmarva decided that locally owned and operated franchises should be excluded.  The operation of the franchise is still governed by people outside of the local community (loss of community identity), products sold to consumers or products used in a service based business or usually dictated to be purchased outside of the community (no flexibility to purchase locally produced products), and a sizable portion of the franchise's profits go to another state in the form of royalties and licensing fees. 

Shop Local Delmarva also decided to exclude businesses with absent owners, that is, owners that may have started the business while living in the community, but have decided to move or semi-retire to another state while maintaining the operation of the business.  Like the profits of a franchise, the profits of a business with an absent owner are going to another state to maintain the owner's residence and lifestyle in that state.

Ultimately, the definition of a locally owned and operated business is up to the individual to decide for him/herself.  Whether one only considers shopping local in his/her immediate community or a larger geographical area, the important thing is shop local, Delmarva!  If everyone made a ten percent shift in their spending habits towards locally owned and operated businesses, the local economy would see huge benefits. 

 

For a complete, formalized definition of "locally owned and operated business" as defined by Shop Local Delmarva, please see our "Get Listed" section and remember, if you own a business on Delmarva and your business meets the definition, you can get a basic listing that is, and always will be, free.