What Happens When You Spend $100 at a Local Business in the Greater Houston Area?
The powerful impact of keeping your dollars local—and why it matters more than ever in Houston.
When you spend money in the Greater Houston Area, where you spend it matters. Whether you’re buying a gift in Montrose, ordering tacos in the Heights, or booking a haircut in Sugar Land, choosing a local business over a national chain has a ripple effect that stays right here at home.
Let’s break down how $100 spent with a locally owned Houston business compares to spending the same amount at a chain store or online retailer.
The Local Multiplier Effect: What Stays in Houston
According to recent studies, when you spend $100 at a locally owned business:
$68 stays in the Greater Houston economy¹
$43 stays when spent at a national chain¹
Less than $13 stays local when shopping online²
That means shopping local keeps up to 58% more money circulating in your community.
Where Does Your $100 Go?
When You Shop at a Local Business in Houston:
$25 – Local wages and salaries for people who live in your neighborhood
$18 – Purchases from other local suppliers and vendors
$10 – Local taxes and permits that fund schools, roads, and public services
$8 – Support for Houston-area schools, charities, and events
$7 – Rent or property taxes that stay in the local market
$68 – Total reinvested into the Greater Houston economy¹
When You Spend at a National Chain:
$13 – Local employee wages (often part-time or lower wage)
$10 – Local operating costs
$20 – Non-local supply chain expenses
$7 – Local taxes
$50 – Sent to corporate HQs or out-of-state vendors
$43 – Total local economic impact¹
When You Buy from a Large Online Retailer:
$3–10 – Local delivery or logistics wages (if any)
$90+ – Leaves the local economy immediately
Only $10–13 stays local²
Why This Matters for the Greater Houston Area
Local businesses are the heart of Houston’s economy, culture, and identity. When you support them, you’re doing far more than making a transaction:
You’re creating jobs for your neighbors
You’re funding schools and services through local taxes
You’re helping build community wealth and stability
You’re keeping Houston unique, diverse, and full of character
Small businesses also give back more than large corporations. They sponsor youth programs, show up during crises, and help shape the neighborhoods we call home.
You Have More Power Than You Think
Every time you choose to support a local business—whether it's in Pearland, The Heights, Katy, or Midtown—you’re making a lasting impact. Your $100 doesn’t just pay for a product. It:
Pays someone’s rent
Funds a student’s tuition
Supports local nonprofits
Keeps a storefront open
Builds a more resilient economy for everyone
You don’t need to spend more. You just need to spend intentionally.
What You Can Do Today
Redirect just one weekly purchase to a local business. Choose a Houston-owned café over a chain. Hire a local contractor. Shop at a neighborhood market instead of a national site.
The more we choose local, the stronger Houston becomes.
Want to make an impact right now?
Explore Local Gems Across Greater Houston »
Sources
Andersonville Study of Retail Economics, Civic Economics: https://www.civiceconomics.com/andersonville.html
Why Buy Local?, American Independent Business Alliance: https://amiba.net/resources/multiplier-effect/
Small Business Facts, U.S. Small Business Administration: https://www.sba.gov/advocacy/small-business-facts
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