Other gross assumptions in their economic analysis: Local Entrepreneurs spend all profits locally. While some do, many spend profits elsewhere . Many have homes in Lake Almanor, Lake Tahoe, on the coast in Monterey or Fort Bragg, and as a result profits do leave the area. Another assumption: Local businesses pay higher salaries, which is not necessarily the case. Another assumtion: local business purchase all raw materials (coffee, food, office supplies, computers) from local producers, which is almost impossible, and rarely the case.

Buying Local Movement Could Hurt Chico Regionally
An interesting phenomenon is the fact that many communities are embracing a buy local program, which is ironically hurting communities like Chico, as cusomers who were purchasing in Chico are now deciding to buy locally in Oroville, Paradise, Willows, Orland, Corning, Gridley, rather than Chico. Chico draws retail spending from five local counties, with local small businesses and the City of Chico itself dependant upon the fact that Chico has been a retail trade hub. The long term impact of reduced retail spending in Chico (as a result of other buy local programs) could mean that programs like th City of Chico support of the arts - e.g. Chico Performances for local schools - could be hurt.

Darwin in Retail
I think a better way to select a business to patronize is based upon the quality of the service and quality of the product(s), based upon the price. If you visit communities around the country, those with successful local economies have a local consumer base that demand a high quality of service. Why is this important? Because if the local consumers demand a high quality of service, then those consumers from outside the area will be drawn to these same successful small businesses with outstanding products or services. Consider the successful local businesses (Sierra Nevada Brewery, Morning Thunder, and in the past - Corey's.) They are/were successful not because they are local, but because they are Good! So good, in fact, that you refer friends and family from out of town to go there. Would you do the same for a local business that had, for example, poor service, just because the business was local?

Potential Arguments for Buy Local
There are instances when buy local program have their merit. When a business is first starting, the owners are often still refining the quality of their products, services and operations. This "shake-out" period is an outstanding opportunity for the local community to support a local business, and help the business to refine their "product." These emerging businesses are vunerable, and need a conducive environment for growth (like a new born baby may need a incubator). Supporting new businesses during the first few months is outstanding way to help.

How Do We Help Build a Strong Local Economy
Again, by all means, buy local. But buy local only if the business has a superior product or service. If they don't have good quality of products/services, PROVIDE OPEN, FREQUENT FEEDBACK!!! This is the best way to help. If the entrepreneur is truely destin for success, then they will incorporate the feedback and improve. If they do not incorporate good business practices, customers will find other solutions. (Ironically, many national (non-local) businesses require their local operations to follow strict operations guidelines, and won't be able to adapt operations to local recommendations. Locally owned small businesses are not constrained by these requirements.)

Next Blog Topic: Import Substitution versus Buy Local

The act of creating these profiles itself is a form of creative art. More on Bruce Jans is available by clicking here .

Obviously this type of spending was not sustainable. We've known that house bubble had to burst. We just didn't anticipate it would burst with the banks and stock market.

So to answer the question, when will the retail bleeding stop, we must look at the number of retailers a community can support. In the recent past, retailers have expected continuous growth in consumer spending. Now, as consumers tighten their spending behavior, competition among retailers and service sector (restaurants, hair dressers, etc.) is likely to increase drammatically. The short term news is fewers retailers, lost jobs, and shuttered store fronts. In the long term, the stores who survive will be stronger, and will have a broader consumer base upon whom to draw.

Another pattern we've witnesses over the past 8 years has been an ever increasing number of communities surrounding major retail centers (Chico, Yuba City, Redding, Sacramento) who have created their own retail centers. Rather than losing retail sales to Chico, communities like Gridley, Oroville, Paradise, Orland, Willows and Corning, have been creating their own retail centers, building their retail sectors off the high levels of retail spending of local consumers. How these retail centers perform over the next 2 years will depend greatly upon how aggressive they work to retail their customer base in their communities. Over the past six months almost every community across the country has embraced a "Shop Local" strategy.

How well communities are able to retain retail spending locally will also greatly influence the health of local governments. Many municipalities have become dependant upon taxable sales income, and have not felt the full impact of declining retail spending.

Creativity is vital. One important and often overlooked aspect of any community is the arts. Last week the National Governor's Association released a new report highlighting the importance of the arts to community economic development. The report, available online (click here) provides an outstanding portrait of the ways in which the arts play an important role in supporting regional economic development across America.

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