While larger corporations drive our economy forwards, smaller companies tend to develop the local community more. When you buy from a local company, more money will stay within the local community, in fact about twice as much as buying from larger corporations. In order for local communities to survive, money has to keep circulating instead of flowing out, which is what happens when you spend your earnings at large supermarkets or chain stores.
Spending your money in a local community also has other benefits. A smaller corporation will have more of a localised demand and can adjust a product to suit the immediate proximity of the business. Larger corporations are less successful at this as they have to appeal to a mass market instead of a refined market.
By keeping things local, you lower the cost of transportation which benefits the environment. It also boosts employment and builds strong connections among the members of your community. This also has the added benefit of a more positive vibe, and happy people tend to spend more money.
If, for some reason, the price of importing international goods increases then it helps to be able to rely on your local community to provide for all of your needs. As long as there is enough money flowing around your local community, it will be able to support enough stores to cover everything; from food and clothes to entertainment and restaurants. Small businesses are more flexible to support a growing and changing environment to meet the demands of the local economy.
A few communities have even gone so far as to create their own currencies. Calgary in Canada and Bristol in the UK amongst a few others have taken a drastic leap to ensure money is being spent in their local economies and the keep the flow of cash localised. This ensures that consumers inside the community are supporting the causes that make them pleasant places to reside in.
The big counter-argument to shopping locally is the price. As we see an increase in millennial consumption of goods that come from ethical and localised backgrounds, the margin between large chain stores and smaller communities is slowly decreasing, however it is still generally cheaper to buy your food at the supermarket instead of at the corner store. The reason that most chain stores and supermarkets exist is because they could initially provide cheaper prices which obviously attracted a large consumer base. Some people argue that by shopping locally, although more money is spent, this is offset by the reduction in transportation and travel costs and the increase in local employment which benefit the community. Products made in smaller local companies tend to be of higher price, but they also tend to be of higher quality.
While it is tempting to always go for the cheapest option, it does pay as a long term lifestyle investment to keep money flowing through the businesses around you. Next time you go to the supermarket, consider if you can buy the same or a replacement product from a local store and consider the benefits for both your community and yourself.