The 2014 Survey of Independent Businesses by the Institute for Local Self-Reliance provides valuable data in several realms, including compelling evidence that your community should sustain or initiate a public education campaign to promote the benefits of doing business locally.
2602 independent businesses from all 50 U.S. states participated in this year's survey. Among the key findings:
Sales Growth — Independent businesses reported revenue growth of 5.3% on average in 2013.
Holiday Retail Retailers surveyed (comprising just over half of respondents) experienced a 1.4% increase in same-store holiday sales, comparable to many competing chains.
Buy Local / Independent — Over 75% of businesses located in cities with an active Independent Business Alliance / Local First campaign reported increased customer traffic or other benefits from these initiatives. They also reported sales growth of 7.0% on average in 2013, tripling the 2.3% gain for businesses in places without such an initiative.
Note: These results come from long-term campaigns focused on locally-owned, independent businesses, most of which employ AMIBA's support. Communities with campaigns that consider chain or franchise outlets "local business" were not counted as having a campaign and the data suggests those campaigns yield no positive impact.
Challenges — Competition from large internet companies was rated as the biggest challenge facing independent businesses, followed by supplier pricing that favors their chain competitors, high costs for health insurance, and escalating commercial rents.
Policy Priorities — Among independent retailers, the top policy priorities are extending the requirement to collect sales tax to large online retailers, eliminating public subsidies and tax breaks for big companies, and regulating swipe fees charged by credit card processors.
Internet Sales Tax — More than three-quarters of independent retailers said the fact that many online companies are not required to collect sales tax had negatively impacted their sales, with 41% describing the level of impact on their sales as "significant."
Access to Credit— Of those businesses that applied for a bank loan in the last two years, 42% either failed to obtain a loan or received a loan for less than the amount they needed.
