Two studies confirm that money spent by customers in locally-owned stores is far more likely to find its way back into the local economy than money spent at national chain stores.

An October 2004 study in Chicago released by the firm of Civic Economics confirmed the results of an earlier study done in Austin, Texas.

The study of Retail Economics, commissioned by Illinois' Andersonville Chamber of Commerce Andersonville Chamber of Commerce compared ten local firms in the district with ten competing chain stores. Plain and simple, they found that local merchants give back more to their community.

Andersonville touts itself as a quaint village in the middle of a world class city.

The chamber's mission is to the strengthen the uniqueness and vitality of the originally Swedish-inspired business community, where small businesses can predominate and thrive.

Today, the "village" is home to a diverse assortment of devoted residents and businesses, including one of Chicago's largest gay and lesbian communities, a large collection of Middle Eastern restaurants and bakeries, and a thriving Hispanic commercial area.

The main shopping street is North Clark Street, which runs roughly north-south. The stretch of North Clark Street south of West Foster Avenue is sometimes called South Foster, or SoFo.

It has also been touted by Chicago Magazine as "the most walkable neighborhood in Chicago."

Ellen Shepard, executive director of the chamber, says she knows local residents are emotionally attached to the independent businesses in Andersonville and believe they should be preserved.

"We didn’t know what the difference would be economically," she adds.

The Andersonville study produced the following insights:

• For every $100 in consumer spending, $73 of such money spent in locally-owned stores remained in the Chicago economy compared to only $43 of the money spent in chain stores.

• For every square foot occupied by by a locally-owned firm, the local economic impact is $179 as compared with $105 for chain stores.

• Over 70% of consumers prefer to patronize locally-owned businesses.

• Locally owned businesses and chain stores generated roughly the same sales per square foot.

• Locally owned businesses and chain stores generated roughly the same sales per square foot (local stores: $246 in revenue per square foot vs. chain stores: $243 per square foot).

• For every square foot of space occupied by a chain, the local economic impact is $105, whereas if a local firm occupies that same space, impact jumps by 70 percent again, to $179.

The chamber hopes city planners will consider measures like a recently passed ordinance in San Francisco that gives neighborhood groups say over how many chains to allow into their areas.

For the best, locally-owned hotels, restaurants, shops and services which represent the heart and soul of San Francisco, go to:

The Rugged Elegance Companion Collection: Your Guides to Places of Taste in San Francisco

Thanks to Book Passages for making the publishers of Rugged Elegant Living aware of this study.

Inspire & Be Inspired (R).

Here's to healthy, adventuresome, soulful and supporting-your-local-merchants living!

~ Jennifer Carolyn King