Jane Prentice (Ryan, Liberal Party) Share this | Link to this | Hansard source

Small business makes an incredibly important contribution to our economy. There are more than 13,000 registered small businesses in the electorate of Ryan, providing tens of thousands of jobs and a vital boost to our local economy. However, small businesses run by local mums and dads can only flourish if we all make the decision to support our local traders and entrepreneurs by shopping small. Imagine the difference it would make if you diverted the money you spent on fruit and vegetables at your supermarket and instead spent that at local greengrocers or at a local farmers market. To small business, your weekly spend could be the difference in keeping their doors open.

Like many of us on this side of the House, I had my own small business for 20 years, struggling to balance the books and prioritise expenditure and not taking holidays so we could afford to advertise or buy a new computer. That is why we must all consider our shopping habits this Christmas. Why not give someone a unique handmade gift instead of a mass-produced one? It may cost a few extra dollars, but surely there is greater satisfaction in giving a thoughtful present that helps a neighbour provide for their own family at Christmas.

The Australian National Retail Association estimates that Australians will spend about $32.6 billion this Christmas. That is on decorations, gifts, food and drink. If we all choose to divert just one per cent of that money into the more than two million small businesses in Australia, that will mean an extra $326 million into our local businesses. The reason this is so important is what economics calls the 'local multiplier effect'. Money spent locally stays local and goes around the local economy seven times. For every dollar you spend at a chain store, just 13.6 per cent is respent in the local economy. However, with every dollar you spend at a local small business, 48 per cent is re-spent locally. To put this into some perspective, let us say I spend $100 at a chain store. Of that $100, $13 is reinvested locally and then, of that $13, just $1.75 makes it to the next round. On the other hand, if I spend that $100 at a local store, $48 is returned to the local economy, and of that $48 another $23 makes it to the next round—an increase of 300 per cent. That is an extra $56.29 locally in just two steps. That is the power of 'shop small'.

If we apply this formula to our festive season, millions of extra dollars will flow to all our local communities. This is great for jobs. The easiest way to create jobs in Australia is to support small business. If one million small businesses grow to a point where they can employ just one more person, that is one million extra jobs. By shopping small and by supporting small business, we create more local jobs. So this year spend just one per cent of your Christmas money at a small business and watch your local area thrive. Support 'shop small'.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

In accordance with standing order 193, the time for members' constituency statements has expired.