We often see signs in our communities imploring us to “buy local.” And we all can agree that it’s generally a good thing to support the local businesses in our towns and cities. But what are the real benefits of buying local versus buying from big chains—especially since local goods tend to come at a higher price?

Beneficiaries in Zimbabwe in front of their store.

As an organization focused on empowering women entrepreneurs through microloans, this is an issue that’s extremely close to our hearts. We’ve seen firsthand the positive spillover effects that local businesses can have, as well as the unique products that can result from vendors who are steeped in their own communities—as we see in both Zimbabwe and Chile where we work.

Buying local has a whole sleuth of benefits—from financial to environmental to cultural:

It keeps money in the community.

According to CustomMade, local businesses generate 70% more economic activity than chain retailers, and money spent at local businesses generates 3.5x more wealth for the local economy than money spent at chain retailers. Particularly in Zimbabwe, which is going through an economic crisis, it’s doubly important to put money back in the community and support the local businesswomen whose hard work has spillover benefits for everyone. Plus, local businessowners are far more invested in the future of their communities than corporate giants, and tend to give more to charities and fundraisers than large chains.

It’s better for the environment.

In some ways it’s obvious: Chain retailers tend to transport items from further away than local vendors, creating transportation waste and often excess processing and packaging waste. But according to CustomMade, local vendors also tend to be more environmentally-conscious overall, being more likely to reuse materials than chain retailers.

Two of our beneficiaries in Chile with their handmade blankets.

It keeps local communities unique.

Local vendors often reflect the unique spirit and culture of the community in which they’re working. This is not the case for chain stores, which tend to be the same everywhere. We see this firsthand through our work in Chile, where local artisans create one-of-a-kind jewelry, blankets and other crafts that help keep their Mapuche heritage alive and provide their customers with a memorable product.

It gives consumers more choices.

Local vendors cater to the unique needs of their customers, unlike big chains that might be looking at more national or global consumer trends. This leaves locals not only with more choices, but choices that are more specifically catered to their lives.

Better customer service.

Since local businesses tend to be small and often even family-run, businessowners can have more intimate relationships with their customers. And since they’re members of the community, too, they’re more accountable to their customers about the way they run their business.

Better quality products.

Products sold by local vendors are often handmade or made ethically in small batches, unlike products from chains which may be mass-produced through questionable labor practices. So when you buy local, you have a better chance of knowing exactly what you’re getting, and buying a product that is free of defects or contamination.