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Smart Ways in Which to Stop Expenditure Outflowing from Local Communities in the Highlands


By Federica Stefani

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Julie MacLeod. Picture by: Alison White Photography.
Julie MacLeod. Picture by: Alison White Photography.

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Back in 2006 I had the privilege of carrying out a formal study on behalf of a local Highland Community looking at modelling ways in which to retain more money in circulation within the local economy. The objective of the project was to demonstrate that small rural communities can be aided not just by pumping money in, but by keeping it within the local economy and not letting it ‘leak’ out. Hence the name of the project ‘Plugging the Leaks’. The aim of the project was to show how buying fresh produce from and using local services within the locality could benefit the whole community at large and to show that every member of the community has it within their grasp to make a difference to the local economy.

In many towns across the Highlands, there is a choice between using national shops and suppliers and local independent suppliers for a wide variety of everyday items. For example, if I decide to spend £10 on fresh produce in a large supermarket, the net benefit to the community is likely to be negligible because a high proportion of that £10 spent is likely to flow out of the local economy. I should point out that these national companies do play a vital role in the local community by providing local employment and customer value. Rather the idea of ‘plugging the leaks’ is to just spend a little bit more locally. A good example might be fresh fruit and veg. By choosing to spend an extra £10 on fresh produce at a small local independent store in town, provided that the owner is local and particularly if the produce is sourced locally, that money will get reinvested back into the local community multiple times. This is known as the multiplier effect – a smart community business move. If for example, every £100 taken, 80% of that money is reinvested in the local community and supply chain and then 80% of that money is reinvested by locals again in the community and so on, the value of that original £100 spent has an exponential benefit to the local community. It increases local prosperity which in turn allows the local town to prosper. Other examples might be using a local garage for new tyres or MOT rather than national service provider or bakery or butcher. As well as small independent shops and businesses, local food box schemes are a great way of keeping money circulating in the local economy.

SmARt Explorer have developed local community and visitor guides for towns such as Dingwall.
SmARt Explorer have developed local community and visitor guides for towns such as Dingwall.

To help get locals supporting their local shops and businesses, SmARt Explorer have developed local community and visitor guides for towns such as Dingwall (example shown) which enables both locals and visitors to become more informed about supporting local businesses. It also gives smaller local independent businesses an opportunity to raise their community profile – giving them as much prominence and exposure as larger businesses.

The guide promotes local businesses and attractions via an app which can be uploaded from a number of different locations on the High Street and other prominent pedestrian access routes. If you would like to find out more about this community app (coming to a number of town locations, including Dingwall, soon), simply hover your Smart Phone on the QR code in the picture to upload the app.

There are opportunities for a limited number of businesses to sponsor the guide and get a new or alternative source of community exposure for a small monthly fee. All businesses can request a free listing once the town guides have been developed.

For more information, contact Julie MacLeod, associate director for the Highlands at: julie@thesmartexplorer.com.


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