University and not-for-profit team up to explore local business
By Chelsey Smith
EDMONTON- A professor at the University of Alberta School of Business along with the manager of Live Local Alberta are exploring the connection between business and community as well as economic and social impacts of “living local”.
Strong communities are created and sustained by independent businesses, according to the manager of Live Local, Francene Brothers.
“When you spend your money in a local business you’re contributing to the success of the community and the success of that business,” Brothers said.
Supporting local farmers and buying food close to home greatly impacts our local economy and the success of farmers markets, says Live Local manager. Photograph by Chelsey Smith.
She says that entrepreneurs help solve social problems by being invested in the communities. For example, Brothers says that $100 spent locally on food has three to five times the economic impact than supporting an alternative where the money more than likely leaves the province, or the country.
Small businesses face a number of challenges that may include lack of purchasing power, marketing power and range.
Brothers joined forces with Live Local founder Jessie Radies to address these challenges, to empower independent business, and thus to strengthen Edmonton, and eventually, Alberta’s local economy and communities.
Live Local is a not-for-profit social enterprise that supports community based entrepreneurs by creating programs and initiatives like benefit plans, online marketplaces, memberships and more.
The organization believes that because independent business benefits the whole (community); consumers should be inclined to shift spending when their interests and values are aligned with local business.
However, consumers may be more fixated on cost than community.
A commonality is what is key in commerce, according to Professor Roy Suddaby, who says that commerce used to be just about quality and price. This is no longer the case with the vast degree of choice people have now he says.
Suddaby explains that today consumers can, and will source their products anywhere. People can determine price point, drive, and/or go online to obtain the best deal.
In a “flat world”, Suddaby says that it is the connection between social community and the business community that makes the difference. The more embedded the business is in the community, the more likely the community is to support the business.
“If the business community treats their social community as just a commercial context, then the lowest common denominator -the cheapest price, is going to prevail; however, if they create an atmosphere that reinforces the local community then I think consumers are willing to pay a little bit of a premium in terms of price to maintain that social fabric,” Suddaby says.
He continues that local business creates a recognizable sense of community that people can identify with, and that this is important when making purchase decisions.
Live Local strives to “keep Edmonton original” and operates at a break-even basis, reinvesting all money back into the programs. Currently the organization has an online directory of about 170 local businesses in the Edmonton area.