Some customers choose to shop at small businesses over large company-owned establishments every chance they get, in their neighborhoods and online, and here are 4 reasons why.

Feel a Sense of Community When Shopping Local

Customers say they feel a sense of community when they shop local. They like showing support for the small businesses in their area and want them to succeed.

Eighty-percent of the consumers who shop locally do so in order to support their community, according to statistics released by Capitol One late last year.

“When you shop locally, $68 out of every $100 spent remains in your community,” says a post by Capitol One.

U.S. shoppers spent an estimated $3.73 trillion at local stores in 2024, equivalent to 51.3 percent of all retail sales, the company said.

A sense of community was also cited by consumers in a survey by financial services company Empower, with 60 percent of the customers giving it as their reason for shopping locally. Also, 56 percent of those polled said they liked building relationships with local business owners who have a stake in their community.

“People want businesses like yours to succeed, they value the role your business plays in the community, and they will often go out of their way to support small businesses instead of giving every last dollar in their checking accounts to big corporations,” says a Motley Fool article by Ben Gran.

Find Unique, Locally Made Products

Customers also choose to shop at small businesses because of the unique products they can find there.

Fifty-six percent of the customers in the Empower survey said they enjoyed the locally handmade products offered at their neighborhood stores.

Further, online platforms like Etsy have grown in popularity in part to the growing support of customers who want uniquely handcrafted products produced by small businesses.

More than half of the U.S. consumers (51 percent) said they use these types of channels to support small businesses, the Empower survey showed. 

Get Personalized Customer Service

Another reason consumers love small businesses? The personalized customer service — something they don’t experience at retailers owned by large companies.

“Shoppers value small businesses for personalized service, with 96 percent of consumers citing this as a key benefit, fostering community loyalty and unique experiences that large chains lack,” says a post by the business mentoring organization SCORE.

“This customized approach, including tailored product advice and familiar, friendly interactions, makes consumers feel valued and understood.”

Support the Local Economy and Sustainable Growth

Customers also see shopping at area small businesses as a means to contribute to the local economy.

Seventy-five percent of the consumers in the Empower survey said they support local small businesses and their local economies by eating at local, non-chain restaurants, and 51 percent said they do so by shopping for produce at farmers’ markets.

“Many customers, especially Gen Z and millennial consumers, are conscientious about where they spend their money,” explains a CO post by the U.S. Chamber of Commerce.

Eighty-five percent of Gen Z say they shop locally at least a few times a month, and more than 25 percent say they visit local businesses a few times a week, says the article by Emily Heaslip.

“Supporting the local economy is one goal that these generations satisfy by shopping nearby,” writes Heaslip. 

“Many millennial and Gen Z consumers are concerned about their environmental impact and carbon footprint; shopping locally cuts down on packaging material and shipping emissions,” she writes.