Globalisation has many advantages, but environmental and social issues have continued to come up as causes for concern. However, since the 2020 pandemic restricted movements and forced us to have more regard for our immediate environment, the advantages of localism in business have started to become more obvious.
For this reason, you should start tailoring your business to match the trends of localism if you really want to gain from its personal and financial benefits. No matter the type of business you do, it is important for you to create and carry out a strategy that will incorporate the principles of localism into your company.
Localism is important to the economy
Globalisation has done some good by expanding product choices and reducing the price of goods. But localism is a far more efficient way to meet the needs of a community. Here are some of the ways in which localism can improve the economy as well as different businesses:
Localism can help with job creation
When more entrepreneurs focus on localism, the issue of unemployment can be a thing of the past. This is because localism encourages business owners to hire people from their immediate environment.
Therefore, as the businesses in a particular local government grow, so does the number of people they will hire from that community. When such a community starts recording a higher employment rate, they will have localism to thank for it.
Localism can ensure the equal distribution of power
It is not good for one player to have so much power in an industry. This is because it poses too much risk to the consumers, as whatever happens to that one chain will affect the entire industry.
In the world of tech, Facebook could qualify as a company that has too much power. That is why when the company got hacked some years back, it affected the users of Instagram, WhatsApp, and Messenger simultaneously. Which brings back the debate about why one company should not have so much power—but localism prevents such things from happening.
If each community had a reliable business model of their own, they would be independent and powerful. This will distribute power around, so everyone does not have to depend on one company and the security risks will not be uniformly distributed.
Localism encourages innovation
As localism grows, different cities will likely start competing with each other in a constructive way, and this can encourage new inventions and improvements to older ways of doing business.
Since things will be done at the local level, the weight of any failures will be minimal. And if people won’t have to spend a fortune to bounce back if a new business plan goes wrong, it will spur them to innovate more.
Localism can help to grow the middle class
Income inequality has increased because a few people at the top of the industry have taken over markets with the help of globalisation. But if localism is encouraged, there will be a distribution of power and even small businesses will experience a growth in their income.
And as more cities embrace localism, the population will become self-reliant, which will go a long way toward the eradication of poverty and the creation of more developed cities.
Localism matters to the environment
Globalisation does not support the recent concerns about the environment, and this can be seen in the high cost of resources used to maintain globalised businesses, as well as the pollution and risks involved in the constant transportation of goods.
Even if people enjoy the ease that comes with ordering goods from other countries and getting them delivered in no time, they will not enjoy the eventual environmental effects. This is because carbon emissions from fossil fuels are increasing, and if global shipping continues at the current pace, international trade will be responsible for about 17% of the carbon emissions in the next 30 years.
To protect the environment, people should be encouraged to shop at nearby stores, and if your business promotes this, you will be doing your part in the fight to save our dear planet.
Localism reduces pollution and waste, and if it gets more attention and the right implementation, climate change will be effectively controlled and we can make the earth as green and healthy as it should be.
Tips on how to embrace localism
No matter what type of business you are into, the following tips will help you plan an effective strategy that will ensure you enjoy all the benefits of localism.
Use local suppliers: apart from the reduced cost of shipping that will be reflected in your cost of production, buying from local suppliers will also reduce the environmental issues stated above. It is a win-win for you.
Find the right partners: as you plan your commercial goals, you need partners from the same environment as the location of your business. This will encourage physical meetings and inspections.
Get involved in the community: volunteer to work on community projects, fund business training, and create commercial awareness. These are the things that will make you respected in the local government, and that respect will show in your business.
Sell the environmental advantages of your business: these days, when one of the fastest ways to get attention in business is to say you are going green or doing something that will help the environment. And since you are actually doing something like that, you have every right to use it to promote your business.
This will attract the right customers as well as investors that care about saving the planet.
Conclusion
As you embrace localism and watch your business grow, you can enjoy all the benefits. But it is more fulfilling to know that with a single adjustment in the way you do business, a lot of people can gain from it, even if they are not buying from (or partnering with) you.
As you play your part in reducing pollution and encouraging your community, people will keep enjoying the indirect fruits of your business even after you are gone.
Read all about our Impact Report 2022 here and learn more about how to embrace the pathway to a better world.