Here in Santa Cruz County, the concept of "Buy Local" was in use long before it became a nationwide call to action against the proliferation of big box chain stores.

Look back to the dedication of preserving earthquake-decimated businesses downtown, the debate of allowing Borders to come to Capitola and downtown Santa Cruz or the uproar over a Wal-Mart just over the county border in Pajaro. Nevertheless, small businesses are more threatened than ever. I think it's time to renew our commitment to buying local.

People often wonder what defines a local business. Sometimes this can be difficult. How about a locally-owned fast food restaurant? How about an insurance agent with a national company and a local office?

A locally-owned business is one where the community member has full autonomy and local decision-making authority with respect to their business practices.

The Business Alliance for Local Living Economies, comprising 37 business networks around the globe, met last week at Cabrillo College to discuss support for local businesses. Many local business leaders and elected officials participated. The alliance Web site, www.livingeconomies.org, suggests asking the following questions to determine if a business is indeed "local":

  • Is the business privately held not publicly traded?
  • Do the business owners live in your local region?
  • Is the business registered in your state, with no corporate or national headquarters outside your region?
  • Can the business make independent decisions regarding the name and look of the business, as well as all business purchasing, practices and distribution?
  • Does the business pay all its own rent, marketing expenses and other expenses without assistance from a corporate headquarters?

Several studies have shown that money spent at a locally owned business stays in the local economy and strengthens the economic base of the community. A recent case study: For every $100 in consumer spending at a national bookstore in Austin, Texas, the local economic impact was $13. The same amount spent at locally-based bookstores yielded $45, according to Civic Economics, Austin Unchained October 2003.

I encourage you to spend a portion of your holiday dollars at local businesses. Consider a gift certificate from local restaurants, retail stores, independent movie houses, etc. If you attend one of the holiday events sponsored by the Downtown Association, including "Snow Day," the parade or the carriage rides, take time to browse at the independent businesses downtown. Mark your calendar for the Watsonville manufacturers wholesale shopping day. Think about where you are spending your hard-earned dollars. Do you bank locally? More than any other industry, your investment with locally owned financial institutions circulates back into our community by generating capital to lend to local businesses. Consider local providers for your Internet connection and Web hosting, farmers markets for locally grown products, independent real estate agents, insurance representatives and financial advisers.

We all shop at the "big boxes." But keep in mind many of our purchases could be made at a locally-owned business. Our unique local businesses attract visitors. They donate generously to the local nonprofits and community groups that make our community special. I urge you to patronize them so they may continue to be a jewel in the crown that is Santa Cruz County.

Teresa Thomae is director of the Central Coast Small Business Development Center at Cabrillo College.