Test – Shop Local

Where Your Dollar Goes: The Economic Impact of Shopping Local

Every day, the decisions we make about where to shop, dine and spend our time help shape the future of Bismarck-Mandan. Choosing local businesses is more than a transaction, it is an investment in the people, places and experiences that make this community strong. From neighborhood retailers to locally-owned restaurants and service providers, these businesses create jobs, give back and play a direct role in building a connected and resilient region.

The Local Multiplier Effect: One Purchase, Multiple Impacts

Shopping and spending locally not only supports jobs and sustains local business, but it also creates a ripple effect that strengthens the region’s entire economic ecosystem. This ripple effect created by shopping locally is described by the American Independent Business Alliance (AMIBA) as the local multiplier effect, or the idea that money spent locally continues to create value as it moves through the community.

According to AMIBA, an average of 52.9% of each purchase at local independent businesses is recirculated locally, compared with less than 13.6% of purchases at chain stores or online sites. Dollars spent close to home help support the businesses that hire locally, serve the community and reinvest in the region in visible and lasting ways.

For example, when a customer shops at a locally-owned store, that purchase helps pay employee wages. Those employees, in turn, spend money at other local businesses such as restaurants, childcare providers, service companies and retailers which keep the dollars moving within the region. Local businesses may also work with nearby vendors, invest in improvements, or support community organizations, extending the impact in the community even further.

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All these effects contribute to the overall economic strength of the community which makes Bismarck-Mandan a more attractive place to live, bringing in more community members and increasing the effectiveness of the multiplier effect.

By contrast, when spending occurs online or with non-local retailers, much of that money leaves the region quickly. This is known as economic leakage, when dollars exit the local economy instead of being reinvested close to home. While large retailers and online platforms may offer convenience, fewer of those dollars are returned to local payrolls, property taxes or community investments.

In an article published by AMIBA, economist, attorney, author and entrepreneur Michael H. Shuman argues that communities strengthen their economies when they direct more purchasing power and investment toward locally rooted businesses. Shuman also served as the keynote speaker for the Chamber EDC’s 2026 State of the Cities, and in his presentation he highlighted the importance of local ownership and local spending as drivers of economic resilience. Shuman emphasized Bismarck-Mandan’s strengths as being a hub of local business and encouraged residents to be an active part in supporting the local economy. His message served as a reminder that the choices residents make each day about where they spend their dollars can play a meaningful role in shaping the region’s long-term economic vitality.

Shuman also cited state statistic rankings of small business numbers showing North Dakota has the 5^th highest share of small business employment in the country. For Bismarck-Mandan this is especially impactful because a strong base of locally-owned businesses means more opportunities for dollars to circulate, supporting not only individual companies but creating a healthy business climate that Chamber EDC members rely on. The result is an economy that is more connected, more resilient and more responsive to community needs. When dollars stay local, they help sustain jobs, fund essential services and reinforce the business environment that allows communities to grow from within.

Everyday Spending and Visitor Dollars: Keeping the Economy Moving Forward

The local multiplier effect shows most clearly in everyday economic activity where people shop, eat, stay and spend their time. Across Bismarck-Mandan, retail centers, downtown storefronts, restaurants and hotels all play a role in keeping dollars circulating through the community.

For residents, in-person shopping and dining support local jobs and provide steady economic activity. Retail hubs like Kirkwood Mall, or downtown Bismarck or Mandan, are places where residents can show up and invest their dollars back into the community. With about 30% of tenants locally owned, Kirkwood Mall offers a convenient way for residents to support North Dakota businesses while shopping in a centralized, accessible space. Both downtown Bismarck and Mandan are also home to well-known local businesses, creating spaces where residents can explore the heart of Bismarck-Mandan while investing directly back into the local economy.

Tourism adds another important layer to this equation.

“Whether visitors come for meetings and conventions, sporting events, leisure travel, or to visit friends and family, they spend money at local businesses. Those visitor dollars circulate throughout the economy, supporting jobs, generating tax revenue, and helping fund services and amenities that benefit both residents and businesses,” said Sheri Grossman, CEO of the Bismarck Mandan CVB.

Those visitor dollars are spent across multiple sectors such as hotels, restaurants, retail, transportation and attractions, expanding the reach of the multiplier effect even further.  “Visitors are customers for a wide range of local businesses, and this spending creates a ripple effect that supports jobs, business growth, and investment throughout the community,” continued Grossman.

While residents’ spending helps circulate dollars already in the community, Grossman explained that tourism introduces outside money that fuels additional economic activity and generates sales tax revenue that supports local infrastructure and even reduces the tax burden on residents. Together, they create a more dynamic and resilient local economy, one where businesses benefit not just from local support, but from a steady flow of new demand.

This blend of everyday spending and visitor activity helps sustain jobs, strengthen business confidence, and support the services and amenities that make Bismarck-Mandan a place people want to live, work and visit.

Your Dollars, Your Community, Your Impact

Every purchase tells a story about where investment, opportunity and growth take root. In Bismarck-Mandan, choosing to spend locally helps keep dollars circulating through businesses, employees, and services that strengthen the community from within. For Chamber EDC members, that local spending is more than consumer behavior, it is a critical piece of the region’s economic infrastructure. When residents and visitors alike support local businesses, they help sustain jobs, reinforce economic resilience, and build the kind of connected, thriving environment that allows business to move forward in Bismarck-Mandan.

As you consider where to shop, dine, meet, and invest, choose businesses that help Bismarck-Mandan thrive. Supporting Chamber EDC members and locally-owned businesses is a practical way to keep dollars working here at home, strengthening jobs, encouraging reinvestment and building long-term economic opportunities. With nearly 1,200 Chamber EDC members and many more local businesses across the community, every purchase is a chance to make a meaningful impact. Make local support part of your everyday routine and help keep Bismarck-Mandan’s economy moving forward.

Use the QR code to find the full Bismarck Mandan Chamber EDC membership directory: