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.
