Does two-thirds of every dollar spent at a small business stay in a local community?

A 2018 study commissioned by American Express found that an “average two-thirds of every dollar (67 cents) spent at small businesses in the U.S. stays in the local community.”

American Express, the credit card company that founded Small Business Saturday, and the National Federation of Independent Businesses have conducted research on the economic impacts of shopping locally.

Researchers calculated the share of the national Gross Domestic Product that small businesses contribute to the economy and “estimated how much of each dollar spent at the average small business remains in their local community.”

Businesses, government officials and the U.S. Chamber of Commerce have used the estimate to promote shopping locally, especially during the winter holidays.

In Wisconsin, Gov. Tony Evers proclaimed Nov. 26 — Small Business Saturday — through Dec. 31 as “Shop Small Wisconsin” days, noting that nearly half of Wisconsin employees work for small businesses.