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What's the Multiplier Effect?

Get Involved in our Targeted Business Study!

We’ve all heard that buying local takes your dollar further than purchasing from national chains, but how? The multiplier effect is the circle flow of income and spending in the economy. Money earned flows from one person to another, and most of it gets spent again ‐ not just once, but many times over, so that small increases in spending lead to much larger increases in economic output. When money is spent with independent businesses, the money circulates more often because local owners recirculate profits, businesses create more jobs in the community, purchase local products and services from other local businesses, and support local associations, teams, and charities.

The multiplier effectIn 2013, the first studies in Canada were produced on the multiplier effect. Then, BC’s own ‘LOCO BC’ studied the impact of spending with local service providers, and found that service spending with independent businesses in fact has double the economic impact. Civic Economics equally produced a study on the impact of local retailers and restaurants, that showed that local spending created 2.6 times the economic impact of their multi‐national competition. These statistics have been used across BC and even in other parts of Canada to influence greater local spending, and increase awareness amongst policy makers to improve the enabling environment for the survival and long‐term success of independent businesses.

In 2019, the Township of Langley has partnered with LOCO BC to undertake a truly local study to discover the current impact of buying local.

We’re looking for store-front retail and restaurant businesses in the Township to participate in our Buy Local Impact Study. Contact us before October 15 for more information!

As part of the research stage of this study, we’re hosting a local business data survey. Business data and information on revenues and expenses, payroll, purchasing, as well as philanthropy is essential to understanding our local economic landscape. It sounds like a lot of detail but it’s a simple online survey (or 20 minute phone call if that’s easier for you). All information shared will remain confidential and will not be shared or associated directly to your business. If you own a store-front retail or restaurant business in the Township and want to impact this research and support your local economy, complete the survey now! Each business that participates before the October 15 deadline will receive its own report and graphics, as well as the B.C. wide report.

For more information on our Buy Local Impact Study, email us at