Think local, act local, buy Croydon

By - Wednesday 26th October, 2016

Keep it Croydon if you want the town’s economy to stay healthy

Hannah Luffman recently wrote about the importance of spending, resourcing and investing locally as a means to make sure everyone benefits from Croydon’s booming economy. It’s not just a nice sentiment, it actually works.

The local multiplier effect

Money that stays within the local economy gets spent again and increases well-being. This is called the local multiplier effect. It is used by regional and local authorities all over the UK to show how spending in their area can boost jobs and opportunities.

The multiplier results from the fact that independent locally-owned businesses recirculate a far greater percentage of revenue locally compared to absentee-owned businesses (or locally-owned franchises). In other words, going local creates more local wealth and jobs.

Going local creates more local wealth and jobs in Croydon

The multiplier is comprised of three elements – the direct, indirect, and induced impacts. Direct impact is spending done by a business in the local economy to operate the business, including inventory, utilities, equipment and pay to employees. Indirect impact happens as pounds the local business spent at other local businesses re-circulate. Induced impact refers to the additional consumer spending that happens as employees, business owners and others spend their income in the local economy.

How Croydonians have diminished the local multiplier effect

Unfortunately, over the past fifty years, the expansion of national businesses into Croydon has diverted this vital monetary stream and redirected it to centralised corporate coffers. There it is spent on large capital expenditures, overseas goods and all too frequently inflated executive salaries. This interception of funds has depleted local towns and cities across our nation of an important source of funds: recirculated income. You only have to look at the effect that the big Tesco in Purley has had on the town’s high street and independent traders to see this in action.

This reduction in the number of rounds that monies make has had an extremely negative effect on Croydon’s local economies. All areas of community life are affected by this deficit. Besides the obvious poverty-related problems of unemployment, underemployment, homelessness, and lack of funds for social and public health needs, there is also the issue of creating an unhealthy reliance on a vast commercial network of imported – rather than locally made – goods.

Think local, act local, buy Croydon

Croydon is changing, fast. Adapting to this change requires the general population to learn new skills – exactly the type that Croydon Tech City teaches the community each month for free. But it also requires those same Croydonians to exercise their purchasing power in a manner that supporting traders in the area that are the first to feel the downside of rising business rates and rents: the Surrey Street Market traders, the family shop on Purley High Street, the bedroom freelancer in Coulsdon.

So, think local, act local, buy Croydon. And if you’re not sure where to start, may I suggest buying something from Croydon’s first fashion label.

Support local startups: the next Croydon Tech City event takes place on Thursday 27th October, 7pm at Project B. To attend, please register here.

Jonny Rose

Jonny Rose

Jonny Rose is a committed Christian who has lived in the Croydon area for nearly twenty years. He is an active participant in his local community, serving at Grace Vineyard Church and organising Purley Breakfast Club, and was ranked "Croydon's 37th most powerful person" by the Croydon Advertiser (much to his amusement). He owns a lead generation company. He is the Head of Content at marketing technology company Idio, the founder of the Croydon Tech City movement, a LinkedIn coach, and creator of Croydon's first fashion label, Croydon Vs The World. Working on Instagram training and a Linkedin lead generation service. Views are his own, but it would be best for all concerned if you shared them. Please send your fanmail to: jonnyrose1 (at) gmail (dot) com

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  • Anne Giles

    I have everything delivered, as I am unable to get to shops now. Food is delivered by Sainsbury’s and most other things by Amazon.

  • CroydonSurrey

    T shirt brand needs a bit more work tbh.