by Leslie on January 22, 2010
This week, MERG received an invitation from The Permanent Commission on the Status of Women (PCSW) to attend their Women’s Day at the Capitol on Tuesday, February 9, 2010 from 10 a.m.—12:00 p.m. at the Legislative Office Building– Room 1E in Hartford, CT. The snow date is Thursday, February 11, 2010.
The event features an informational hearing, including public testimony.
Come hear experts from across the state discuss many of the leading issues facing women today including health care,
economic security, environmental health, housing, discrimination, business development and education.
Lend Your Voice! PCSW invites Connecticut residents to provide testimony on the issues that affect them. Testimony will be included in a Public Hearing Report and will be distributed to Connecticut legislators. If you have any questions please email Michelle Noehren or call (860) 240-0016.
by Leslie on December 11, 2009
Dawn Rivers Baker has done it again. She just posted a Microbusiness Manifesto, and you should hop over to her site and read every word. It always fascinates me how spot-on she is when it comes to understanding the ways of micro enterprise businesses, probably because she runs one and has studied them for many years.
In today’s post she writes,
Microbusiness owners tend to prefer a more holistic way of living, in which their work is not separated from their life because, in reality, life is part of work and work is part of life.
This line really resonated with me, because I’ve been looking for a good way to express this idea and she nailed it. I sometimes refer to it as an “integrated life”, but none of my cube-dwelling friends or relatives get what I mean by that. They draw rigid lines between work and non-work hours, so the holistic preference for a life-work balance is definitely not for everyone. But those of us who live by the microbusiness manifesto can see no other way that is even remotely as rewarding.
by Leslie on December 7, 2009
A week ago was Cyber Monday, and from all accounts, it was a big one for online retailers. I’m happy for them as this, along with positive news about unemployment, signal that we could be headed for recovery, right on schedule. But what about the brick and mortar shops in your town? How are they doing? Are they getting your business?
Local independent retailers have a hard enough time competing with big box merchants in their own towns, but they also face stiff competition from online retailers and catalog sales. While there are many things that make competition tough, there’s one particular disadvantage that is easy enough to fix. That is to require large online retailers to collect and remit sales tax to the state. Ok, I hear you, you LIKE tax-free shopping online. I get that; it’s been a nice ride. But think of the impact it’s been having on brick and mortar shops. Your local bookseller has a 6% price disadvantage over Amazon right off the bat. Now think about our state’s fiscal problems, and how desperate we are to shore up the budget. All that tax revenue once collected by brick and mortar shops has disappeared. The Main Street Fairness Act could help both of these situations.
Connecticut is one of many states that also has a use tax. This means that each April 15th, all of us law-abiding citizens need to figure out what we bought online or in another state during the previous calendar year, compute the tax (which can get tricky if you paid a sales tax in another tax district and now need to figure the difference), write a check and fork it over to the state. Many of us do this, trying our best to recall what we’ve spent beyond state lines. But it’s a bookkeeping nightmare for the average Nutmegger, and the state has a poor track record of enforcing this rule.
The plan to hold large online retailers responsible for collecting and remitting sales tax to the states is gaining momentum. Complications to this plan arise when you consider there are 45 states and more than 7500 local taxing jurisdictions to keep track of. The Supreme Court ruled in 1992 that it was a burden to interstate commerce for mail order companies to comply with all these different rules. But it’s no longer 1992. Today there are software programs that can track changes to these rules and many large online retailers already use them.
The Streamlined Sales Tax Agreement is one solution being suggested. It works like this,
This Agreement is the result of the cooperative effort of 44 states,the District of Columbia, local governments and the business community to simplify sales and use tax collection and administration by retailers and states. The Agreement minimizes costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It encourages “remote sellers” selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. It levels the playing field so that local “brick-and-mortar” stores and remote sellers operate under the same rules. This Agreement ensures that all retailers can conduct their business in a fair, competitive environment.
If you’re wondering, no, Connecticut is not one of the 44 states to sign the agreement, though our neighbors to the east have. Rhode Island now requires any online retailer with annual sales in RI above $5k to register and collect sales tax. Even New York has adopted an Amazon law, to require affiliates of large retailers to pay up. If this were a new tax, I’d be opposed to the idea. But this is a tax we already pay on in-state purchases, and which goes mostly uncollected on out-of-state, online and catalog purchases. It will simplify our use tax calculation, since we’ll now pay it at the point of sale. It won’t affect smaller retailers whose sales can’t support the additional bookkeeping requirements. While the state should do better at collecting sales and use tax, this plan could help recoup some of it for them. Best of all, it will remove the sales tax advantage enjoyed by online retailers at the expense of brick and mortar shops.
by Leslie on November 20, 2009
With Black Friday just a week away, I’m confident those of you reading this will be seeking out your neighborhood’s locally-owned, independent merchants to shop at this season. But there’s a new wrinkle in the ‘buy local’ movement that I’ve wanted to write about for a while. It’s known as “local washing”, or the corporate co-opting of the very word ‘local’. It seems rather silly because after all, don’t consumers know when they’re shopping locally?
The answer to that is most likely the reason behind efforts to muddy the concept for consumers. If shoppers were not already beginning to show a preference for local business, corporations would not be working so hard to convince us they, too, are local. After all, Wal Mart is RIGHT HERE…in your backyard! What more evidence does one need that it’s local? Large, global corporations define ‘local’ as any business that’s in your town. The rest of us define locally-owned independent businesses as those owned by people who live locally and make all the decisions about the businesses. Normally, you can go in and talk to the owner of a local business. (AMIBA has a much better definition here.)
The Chamber of Commerce in my neck of the woods has recently launched a “Buy Local Shop Chamber” program for its members. I noticed two unusual things about this program that have me scratching my head. First, it was launched from Panera Bread, one of more than 1400 Panera Bread locations in 40 states and Canada. Panera Bread is neither locally-owned nor independent. Second, the program is apparently open to any member who pays for the stickers; no other criteria are mentioned on their website. A quick scan of Chamber members shows several hotel chains, restaurant chains, and the usual line-up of big box retailers. Presumably, all of these businesses may participate in the Chamber’s ‘Buy Local Shop Chamber’ program. So by blurring the line between local and national businesses, the Chamber is contributing to the confusion of consumers.
Local washing has followed quickly on the heals of green washing, which is another phenomenon where large, environmentally destructive corporations try to protect their image (and their market share) by posing as environmentally-friendly protectors of the earth. They launch deceptive consumer campaigns to present an image of being green in response to, and at the expense of companies that are actually far more responsible. So it follows that any consumer trend will be quickly spotted by these large corporations, and some new product or media campaign will convince us that we can shop at Corporation X and know that it is green, local, or whatever you want it to be.
Stacy Mitchell, author of Big-Box Swindle, and a senior researcher for the Institute for Local Self-Reliance has written a very good piece about local washing called, The Corporate Co-Opt of Local, where she explores this phenomenon in depth. I strongly recommend you read it.
Local washing is an interesting trend to watch this holiday season.
by Leslie on November 3, 2009
Today is election day in Connecticut, so it seems like a good day to talk about community character. The American Independent Business Alliance (AMIBA) has a slogan, “Because Community Matters“, which really drives straight to the heart of the argument for thinking locally. The idea that we should strengthen local economies as a way to protect the unique charm of Connecticut’s towns and cities makes perfect sense. Think for a moment about what makes your hometown a special place. Is it the people, the history, the architecture, the cultural offerings, or the natural beauty of the woods, hills, or waterways? All of those things do, indeed, make Connecticut a great place to live, and give us that sense of place we enjoy.
In addition are the many local businesses you see each day. If you think about your favorites, they will most likely be restaurants or shops operated by locals, people who live right next door to you in the community. These people have often made large investments in starting their businesses, so they want the community to continue to thrive in order to sustain them. They work pretty hard to ensure this. They serve on school boards and town councils, they coach Little League, they donate to many local charities, and they’re out there at the polls today. Through their unique offerings, expert advice, and personal service, locally owned independent businesses contribute an awful lot to the quality of life in our hometowns.
Increasingly, this important quality is being eroded by the influx of larger corporations, who make decisions about what products to stock hundreds or thousands of miles from here. Their stores all look alike and their food tastes the same everywhere you go. Their owners care little about our local character or the environment and they have no vested interest in the health of the local economy. If their bottom line heads south, they simply pull up stakes and move on, leaving a giant cement box surrounded by acres of asphalt behind. They are essentially homogenizing Connecticut, robbing us of the things we love most about our fine state.
So think about this as you head to the polls today. And DO head to the polls today!
by Leslie on October 24, 2009
This week, MERG received a very gracious invitation from the National Federation of Independent Business (NFIB) to join them for a special member meeting at the Capitol on October 29th. MERG members, and other independent business owners are invited to attend a luncheon meeting to address issues affecting small business owners. Fergus Cullen, Executive Director of the Yankee Institute for Public Policy, will address Connecticut’s budget and current fiscal mess, and what it could mean for your business.
State Director Andy Markowski will provide an update on both state and federal legislation expected to have an impact on small business. There will also be a briefing on the latest news from Washington, DC on federal health care legislation.
When: Thursday, October 29
Time: 10:30 a.m. Registration – 12:15 p.m.
Where: Judiciary Room – 3rd Floor State Capitol, Hartford
Lunch will be provided at no cost.
Registration for this event in free, but please RSVP by October 26 by contacting Christopher.Carlozzi@Nfib.org or calling (877) 863-0763.
by Leslie on October 16, 2009
MERG member, Marc Gallagher, has recorded a public service announcement to encourage people in Connecticut to buy local. The 60-second PSA is currently running on a few stations around the state. Marc did a fine job on this, so I wanted to post it and encourage anyone with connections to local radio to ask about getting it played. I’m pretty excited about this, as it is the first audible step in our state-wide effort to promote local, independent business. Nice job, Marc, and thank you.
And from the better-late-than-never file: my local IBA is filing a grant application today (the deadline) for a shop local grant.These grants are given to members of NEIBA, the New England Independent Booksellers Association, to establish or develop independent business alliances. So all you indie booksellers out there – if you’re not already a member of NEIBA, this is just one of many great reason to join. The next round of grants will be awarded in about six months from now.
by Leslie on October 9, 2009
In my last post, I discussed how chain stores eliminate more jobs than they
create. But what about this idea that they grow the local economy in the towns where they operate?
According tothis 2004 study in Chicago which compared the economic activity of ten local businesses and their big-box competitors, the scales are tipped in favor of the locals. The study concluded in part,
- Locally-owned businesses generate a substantial Local Premium in enhanced economic impact.
- For every $100 in consumer spending with a local firm, $68 remains in the Chicago economy.
- For every $100 in consumer spending with a chain firm, $43 remains in the Chicago economy.
- For every square foot occupied by a local firm, local economic impact is $179.
- For every square foot occupied by a chain firm, local economic impact is $105.
That “local premium” they refer to means that local retailers bought more goods and services from other local businesses. For instance, they used a local bank, hired a local lawyer, accountant, web designer, and purchased supplies from other local vendors. They used a local print shop, and they advertised in the local newspaper. The chains did not. Beyond wages, national retailers spend almost nothing in local towns. So there’s no added economic activity from chains replacing local independent business and in fact, the exact opposite is true.
How do these myths ever get planted in our collective psyche?
by Leslie on October 5, 2009
So what’s all the fuss about shopping at local, independently-owned businesses? What’s so bad about chains? Don’t they create jobs?
Since the mid-1950s, America has developed a love affair with large chain-stores that promise jobs and then do, in fact, deliver them. The ribbon-cutting ceremony is a big, happy celebration with lots of local officials, the chamber president, and excited customers who can’t wait to be the first ones inside. Look at all the jobs! This is progress, don’t cha know.
But what we don’t see at these ceremonies is all the other jobs that will be lost. The local hardware store will try its hardest to compete for a while, but will ultimately shut its doors leaving people out of work. The same thing happens to many other local retailers. In fact, studies have shown that when a Wal-Mart opens, there is a net loss of 150 retail jobs in the surrounding community. A Wal-Mart job replaces 1.4 other jobs because Wal-Mart can make the same volume of sales with fewer employees. Adding a new chain store to a community doesn’t add any more available dollars for consumers to spend, so the increase in sales at the chain decreases sales somewhere else.
That ’somewhere else’ is usually a mom & pop retailer. For each locally-owned, independent store that folds, there is a ripple effect through the community. The shop’s accountant will lose a client, their lawyer will lose a client, their web designer will take down their site, and they will stop buying supplies from other local businesses. These businesses are not likely to make up the lost income with new business from the chain, since these services are carried out in a central location.
So it’s true that chains do offer jobs to the communities they serve, and thinking local doesn’t mean you should never, ever shop at one. It simply reminds us that doing so will result in a net loss of retail jobs to the community.
by Leslie on September 23, 2009
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Enders State Forest in Granby, Connecticut
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Several months ago, I posted an interview with Art Costa, co-chair of New London Local First. At the time, I was just learning about independent business alliances, and how effective they are in educating consumers about the economic impact of their spending decisions. These alliances are succeeding in changing consumer behavior in some very important ways.
But there is so much more to this than just getting people to shop locally. Thinking locally also impacts how we eat, how we develop land, how we build, how we invest, how we treat the planet, and in many ways, how we treat each other. This movement is changing the entire way we live. It has so much potential, and as MERG sits poised to take on new initiatives to grow the movement throughout Connecticut, I’m hopeful. We desperately need some fundamental changes, for in the words of Umair Haque, ” 20th century capitalism is eating itself”. It’s time for a 21st century approach to rebuilding our economy starting with our local communities.
At its core, this movement has the potential to breathe new life into our downtowns, restoring their vibrant cultural and historic significance. But imagine investing your retirement nest egg in locally-owned, independent businesses you visit regularly. Imagine every tomato you eat is locally-grown. Imagine renewable energy like wind, sun, or waves supply all of Connecticut’s energy needs. This is the Connecticut I’ve begun to imagine lately.
If you love Connecticut now, join us. We’re about to make it better.
