In 2023, Lowcountry Local First launched its first “Community Business Academy” in the Portuguese language. The 12-week course targeted entrepreneurs living and doing business in Goose Creek, South Carolina, guiding them through different elements of a business plan, interactive business simulation exercises, and hands-on training. Brazilians represent more than 15% of the population in Goose Creek and this first-of-its-kind offering in the region — and possibly the state — signals a growing need and willingness of city officials to think outside the box when it comes to supporting local entrepreneurship and economic development.
Seeded with American Rescue Plan Act funds, the Academy was one element of a $140,000 partnership between the City of Goose Creek and Lowcountry Local First to fill a gap for culturally responsive business workshops and education. “These are the types of transformative partnerships we are always looking for,” said Goose Creek Mayor Greg Habib. The partnership also includes workshops for existing businesses, a holiday “Shop Local” event and street banners, and a pilot program for affordable commercial space.
Lowcountry Local First is one of dozens of Independent Business Alliances (IBA) operating in states, cities, and towns across the country, which have a mission to support locally owned, independent businesses and robust local economies. IBAs are often founded by community members who own independent, small businesses and concerned citizens wanting to protect their communities from being overtaken by big-box corporate retailers and online giants. Their sizes range from no employees and volunteer-led to Local First Arizona, a statewide organization with programs spanning food systems to local procurement, more than 60 employees, and over 3,500 business members.
The programs and work of IBAs — these groups also go by terms like “local business networks” and “local economy organizations” — depend on the unique needs of the community, as well as the size and capacity of the organization. Independent Business Alliances are nimble and innovative in how they approach growing local economies. They know the place, the people, and the culture, and often have deep expertise on local development issues. But the strongest of these IBAs are supported by local and state governments that recognize the unique skill sets and expertise these crucial organizations have for cultivating strong independent businesses and local economies.
There are a variety of IBA programs that local and state governments have supported to achieve shared local economic development goals. Here are a few examples of how cities and states have either funded or directly partnered with IBAs and their programs to support small businesses and foster thriving local economies.
IBAs offer a unique set of entrepreneurial support and local economic development, and focus exclusively on supporting and growing businesses that are recirculating dollars into the local economy. They provide important capacity and knowledge to supplement a state or municipality’s offerings to fostering homegrown businesses, efforts that are often bolstered by government support.
The organization Love.Live.Local. supports local, independent businesses on Cape Cod in Massachusetts. Through their Local Business Boost Program, in partnership with Hyannis Main Street Business Improvement District, they have awarded 27 micro grants for one-on-one technical assistance and implementation support to help small businesses stay competitive. Brandi Williams, owner of vintage and thrift store 606 Thrift Ave, received support through the Local Business Boost Program to upfit and reconfigure the space to enable them to add a much needed second dressing room, along with professional photography, legal and accounting guidance for the upfit, and social media support. The Boost program is funded with support from Amplify POC Cape Cod, the Town of Barnstable and MassDevelopment’s Transformative Development Initiative, and the State of Massachusetts.
Affordable commercial space has long been a focus for IBAs, particularly in high-cost markets. In partnership with South Carolina municipalities including the City of Goose Creek and the Town of James Island, Lowcountry Local First provided subsidized commercial storefronts for graduates of their Community Business Academy. Previously, Lowcountry Local First incubated new and beginning farmers through the Growing New Farmers program at Dirt Works Incubator Farm on Johns Island, South Carolina — a historically rural agricultural community facing gentrification and overdevelopment. The incubation included 1 acre of agricultural land, as well as the use of shared equipment and resources.
A Maricopa County, AZ partnership with Local First Arizona helped thousands of small businesses endure through the pandemic. The program provided technical assistance — through Local First Arizona — and was offered in five languages. It covered holistic business support ranging from operations, finances, and financial literacy; licensing, contracting, and compliance; and marketing. Since 2020, over 5,000 small businesses have benefitted, with 92% of those businesses operating today. The technical assistance was made possible in part by a $1 million investment by the Maricopa County Board of Supervisors using CARES Act and ARPA funding. Jack Sellers, Chairman of the Maricopa County Board of Supervisors, praised the collaboration, “Our partnership with Local First helped stabilize the local economy in uncertain times and protected the livelihood of entrepreneurial individuals and families across the County.”
Lauren Gellatly“IBAs focus exclusively on supporting and growing businesses that are recirculating dollars into the local economy.”
Access to capital is an evergreen need for local, independent businesses, whether in the start-up or growth phase of operations. IBAs have partnered with municipalities and states to administer funding for small businesses in the form of loans or grants. For example, since 2020, Spokane Independent Metro Business Alliance (SIMBA) in Eastern Washington state has provided help to over 900 Eastern Washington businesses on topics ranging from business licenses to lease agreements to social media management. The organization secured $3.5 million dollars in federal and state resources to help independent businesses survive and recover from the COVID-19 pandemic and more than 80% of the businesses supported are from historically disadvantaged groups, including BIPOC-, women-, veteran-, LGBTQ+, and immigrant/refugee owned.
At the heart of many independent business alliances is the core message that supporting local, independent businesses is good for the community. More dollars are recirculated in the community (see the Local Multiplier Effect), decisions are made locally, and local owners are inherently invested in helping to foster a thriving local economy.
IBAs leverage this message to build public education campaigns, which take many forms — from Buy Local festivals to billboards to local currency programs. The result of IBAs championing support for local businesses has been a demonstrated shift in communities supporting small businesses with their spending, as well as an increased understanding of the community benefits local businesses provide compared to chain businesses and Wall Street corporations.
In 2012, then Phoenix Mayor Greg Stanton worked with Local First Arizona to increase the number of procurement contracts awarded to local, small businesses. The city changed its internal procurement procedures and Local First Arizona created a database of local businesses, allowing those businesses in the database the first opportunity to bid on contracts under $50,000. The result was a substantial increase in city money spent with local businesses — from just $50,000 in 2011 to more than $2.3 million in 2013 — as well as new opportunities for local firms, including the first city contract for local office supply company Wist Business Supplies and Equipment. Today, the City of Phoenix continues to support local businesses through this program for all contracts under $100,000.
Since then, Local First Arizona has expanded its database statewide, with more than 1,400 currently active in Source AZ, which connects employers and anchor institutions to Arizona-based businesses. Local First Arizona highlights one company employing Source AZ — Copperpoint Mutual — which has saved 1% on their total budget thanks to purchasing through the database. The organization reports a multiplier impact showing every $100 million spent on goods and services results in a $500 million impact on Arizona’s economy.
These are just a few examples of the ways IBAs are strengthening local businesses, and how cities and states are partnering with these crucial organizations to build strong local economies. There’s a clear connection between robust IBAs and investments by cities and towns through funding, particularly sustained funding. As IBAs continue to partner with their communities, we will continue to see these local economy drivers support homegrown — and often sidelined — small businesses.
The Local Multiplier Effect: How Independent Locally Owned Businesses Help Your Community Thrive, American Independent Business Alliance, 2024.
Here are the ten short-and-sweet reasons why supporting independent businesses is critical to the well-being of our communities and our economy.
This toolkit offers independent business owners concrete tips for engaging with their city officials and advocating for policies that strengthen and grow local businesses. The...
Independent businesses are among the best engines that cities have for advancing economic opportunity. But they’re disappearing in many places. This isn’t, in large part,...
Stacy Mitchell and Susan R. Holmberg argue that the left should embrace small business again; it is crucial to reversing inequality and rescuing democracy.