How Shopping Locally Builds Economic Resiliency

In an era where global supply chains dominate and online shopping offers speed and convenience, the importance of buying locally has been overlooked. Yet in Manitoba, and across Canada more broadly, shopping locally is about much more than just a consumer choice. Rather, it is a strategic investment in economic resilience, with particular benefits for Indigenous communities.

When consumers spend money locally, a larger portion of each dollar remains in the community. According to research from the Canadian Federation of Independent Business, for every dollar spent at a local business, nearly two-thirds of that money remains within the local economy. By contrast, for every dollar that is spent at multinational firms, only one-tenth of that money remains in the community.

In part, this can be attributed to what economists call ‘multiplier effects’, that is, when local businesses generate revenue, much of that capital is then used to purchase from other local suppliers, hire workers, and reinvest profits within their own communities.

This effect is especially crucial in smaller economies and First Nations communities across Manitoba, where large corporate investment may be limited or extractive. When consumers support local grocers, artisans, repair shops, or Indigenous-owned businesses, they help circulate wealth within the province which, in the long run, helps create stability during broader economic downturns.

Empowering Indigenous Economic Self-Determination

For Indigenous communities, the benefits of local shopping are even more pronounced. Indigenous-owned businesses in Manitoba are growing in sectors such as traditional foods, tourism, forestry, and artisanal craftwork among others. Many of these businesses tend to be concentrated in remote areas removed from most consumers, which makes it difficult for them to scale and compete on a multinational or even national level.

As such, when Manitobans support these businesses, they do more than create jobs — they help foster economic self-determination, cultural revitalization, and intergenerational wealth-building within Indigenous communities.

In addition, because many Indigenous communities in Manitoba, and across the country, are geographically remote or underserved by national chains, local businesses often fill crucial gaps in service delivery and economic opportunity. Strengthening these businesses through community spending creates local employment, keeps young people in the region, and builds a foundation for long-term development driven by local priorities.

Lessons from the Pandemic

The COVID-19 pandemic demonstrated the vulnerability of long supply chains and the fragility of economies overly reliant on external capital. Communities with strong local economies, including Indigenous-led economic networks, were better able to adapt — through local food systems, cooperative models, and mutual aid.

The Indigenous Chamber of Commerce is making it part of its mission to highlight the value of local enterprise. However, consumers alone cannot do all the work. Further support, particularly from governments, can help facilitate this objective by developing and refining their Indigenous-procurement policies, while also increasing the resources available for Indigenous entrepreneurs.

In all, shopping locally is a powerful act of reconciliation and resilience. Every dollar spent at a local or Indigenous-owned business is a vote for sustainable development, cultural preservation, and a stronger, more self-reliant Manitoba. As economic uncertainty continues to loom, investing in our communities by buying locally is one of the simplest yet most impactful ways Manitobans can build a prosperous and inclusive future.