“Local” is really the area that people in the community consider to be local. Is your region defined by natural landscape features, or historic boundaries? Rural communities may define themselves by county, or by multiple counties. Some "buy local food" campaigns have noted that a two-hour drive from farm to table is often considered a "local" food-shed (like a watershed). In a large city, it may make sense to think in terms of both the greater metropolitan area and the business district neighborhood, depending on the situation.

Which Businesses?

Sometimes determining which businesses are local and independently owned can be difficult. How about a locally owned McDonald’s? How about an insurance agent with a national company and a local office?

Many businesses participate in cooperative marketing, offer exclusive lines, and have all sorts of other business agreements. A locally owned business would be one where the community member has full autonomy and local decision-making authority with respect to their business practices.

A simple survey like this one might help you . . .

• Is the business privately held (not publicly traded)?
• Do the business owners, totalling greater than 50% of the business ownership, live in your local region?
• Is the business registered in your state, with no corporate or national headquarters outside your region?
• Can the business make independent decisions regarding the name and look of the business, as well as all business purchasing, practices, and distribution?
• Does the business pay all its own rent, marketing expenses, and other expenses (without assistance from a corporate headquarters)?