Local multiplier effect
The local multiplier effect (sometimes called the local premium) refers to the greater local economic return generated by locally-owned independent businesses as a percentage of sales compared to corporate chains or other absentee-owned businesses.Localisation advocates cite the multiplier effect as one reason for consumers to do more of their business locally.
Two U.S.-based entities have published studies measuring the local multiplier. Civic Economics a for-profit economic consultancy has undertaken studies in Austin, TX, San Francisco, CA; Chicago, IL and Western Michigan . The Institute for Local Self-Reliance, a non-profit organization, executed a study looking at much smaller communities in the Central Coast of Maine. Cite error: A <ref> tag is missing the closing </ref> (see the help page).