Research conducted by NAB has found that local customers are driving the growth of small businesses, with 41 percent of Victorian businesses receiving the majority of sales from local customers.
The research demonstrates the difference Australians can make to small businesses striving to survive the economic downturn and keeping regional economies afloat, says Kevin Potter, Victorian general manager of NAB Business Banking.
“These results highlight the need for people to ‘shop local’ during the downturn, as businesses really do rely on the support of local customers.”
In addition to the local community, businesses were also relying on the support of fellow businesses to weather the current financial storm, with 38 percent of Victorian businesses stating their success hinges on the success of neighbouring businesses.
“There is a real domino effect that comes with spending locally. Often an entire network of businesses benefit from a single purchase,” said Potter.
Potter has advised businesses to take advantage of local business building opportunities by networking and creating partnerships with likeminded businesses, keeping abreast of local issues, and boosting local marketing to build awareness within the area.