Buy Local Campaign Encourages Big Institutions to Help Boost Small Business

"Buy Local" campaigns have long been used to urge consumers to shop at their smaller, locally owned stores. Now, "Buy Local" campaigns are expanding to urge big institutions like hospitals and schools to shop at smaller, locally owned stores. The idea behind this new "Buy Local" approach is to generate more money into small businesses therefore creating more jobs and businesses as well as increasing long-term wealth in more low-income neighborhoods. Supporters of this campaign believe that just a small shift in spending by these institutions can greatly benefit small businesses.

One city that has already taken this approach is Cleveland, where some of the biggest organizations have pledged to buy more products and services from local businesses. Previously, many of these large institutions purchased most of their products and services from outside of the city, using $3 billion annually. If just 10% of the spending of these institutions were used inside the city, it would inject $300 million into the area, which has an average household income of $18,000 a year.

The problem with this plan lies in the fact that there aren't many businesses in these low-income areas that provide the types of goods and services that these large institutions need. To try and solve this problem in Cleveland, the Cleveland Foundation has started creating ideas for businesses that are worker-owned and environmentally friendly. The first of these businesses is a laundry facility that cleans linens and towels from hospitals and nursing homes in the area. The city of Cleveland funded this venture with $5.8 million, this business need to return at least 10% of their profits in order to fund other future endeavors for the "Buy Local" campaign.

Although the true impact of this campaign is yet to be seen, there is reason for hope. John Wheeler, the vice-president for administration at Case Western stated, "Do you think a bunch of do-gooders can create entrepreneurs in these neighborhoods? I've got to see it to believe it," he continues, "To the extent it can be a success it is truly a formula for providing a dramatic amount of economic development. The capacity here for a market is huge..."