The Small-Mart Revolution: How Local Businesses Are Beating the Global Competition

Shuman's book sets out in blunt terms the high costs of driving out of your way to save a little money at a big-box store. His main point is that many small businesses assume it's impossible to compete with Wal-Mart, Target, Home Depot, etc. Shuman shows that's not the case. He also shows that maximizing long distance import/export is a lousy way to develop an economy, both for the country doing the importing and the country doing the exporting. I can't recommend this book highly enough to anyone who is concerned with building a healthy economy in their neighborhood--no matter where in the world your neighborhood is. Shuman does miss a few points. He discusses the subsidies enjoyed by the automobile in our society, but he says little about the role free parking plays in this. The fact is that providing free parking costs the U.S. economy hundreds of billions of dollars every year. Much of this comes from well-meaning local regulations requiring businesses and residences to provide certain numbers of parking spaces. Since parking lots cost money to build and maintain, this amounts to subsidizing automobiles over other forms of transportation. Parking lots also use up precious land that could be better used for other things, and spread out communities so that it's difficult to walk anywhere. Free parking also increases housing costs enormously; it's one of the main reasons housing is so expensive in the U.S. For more on this, see Donald Shoup's book "The High Cost of Free Parking." Shuman also doesn't say enough on the role of population relative to local resources. No amount of re-localization of the economy can bring prosperity if a region's human population is too high. For example, Shuman discusses the benefits of localization of the economy in producing a living wage for workers. This is true to a certain extent, but keep in mind that wages are fundamentally determined by the number of people looking for work. No community can provide a living wage for long if it accepts an infinite number of immigrants. I am more skeptical than Shuman on the possibility of long-term economic growth. Before taking what he says on this as gospel, I would suggest reading some contrary opinions, as in Bill McKibben's book "Deep Economy." Overall, though, "The Small-Mart Revolution" is great. Don't miss it.

I'm a village trustee in rural upstate NY. For twenty years I've been trying to get our village and surrounding town to create a joint economic development office to help retain and expand, and create or lure businesses within our community. Conventional economic thinking has created a race to the bottom, with every community in a zero-sum battle to cajole or bribe outside manufacturers or retailers to locate THERE, resulting in a bidding war small depressed villages like ours simply can't win. Now, our neighboring hamlet is being considered for a Wal-Mart Supercenter and there are those who think this is wonderful: glowing talk of jobs, convenient shopping, increased traffic for other businesses. My gut feeling, and plenty of research, has convinced me this was not going to be the case, and, like other small communities who had to deal with this possibility, I was concerned that this would decimate our existing local businesses, increase our costs for services, medical care, public assistance, etc., but was hard pressed to explain why this was the wrong way to go, or what we could do as a superior alternative. I'm also a board member of Sustainable Hudson Valley, and the director got me a copy of Shuman's book and I devoured it in time to write a column for the local paper,do a radio interview, and present my proposals to a joint village/town board on just what a truly 21st century Development Office should focus on. Shuman's book has neatly articulated and crystalized the thoughts and concepts I've been trying to put forth for years, and has backed them up with the facts and stats that will make it easier to overcome the "There is no alternative" thinking prevalent among economic development agencies and local officials. He shows the inherent and hidden shortcomings and costs involved in pursuing outside "white knights" or letting outside 800-pound gorillas dictate and control a community's economic destiny, and counters with a more sensible and long-term strategy to grow the "living economies" locally, with increased local production, ownership, and financing. Shuman was at our county seat today to give a presentation based on the book, so I was able to convince some others from my community to come and hear what he had to say, and get a copy of the book; about 40 local officials, businesspersons, chamber of commerce heads, planners, and other necessary components of a comprehensive nucleus to spread this "gospel" came from two counties, and I hope to get more villagers to get copies of this book when I show a film on "Independent America" next week, which covers some of the same ground as the book, so complements it well. I have just started reading his earlier book, "Going Local," and I plan to make them both essential reading for any local officials who will be involved in creating the new Development Office, because he lays out a template for what such an entity SHOULD be focussing on, and I wouldn't want such an office to get mired

Shuman's book is path-breaking. . . leading the reader, step by step, far into what is possible for local economics. It places power firmly in each of our hands, and it points the way forward through wise and well-researched strategies that promise to truly make a significant difference. It is a living example of how to be an effective change agent--showing how to embark on these efforts in such friendly spiritedness that folks can hardly but be drawn in. One can barely get to the end without wanting to leap into action. Vibrant community, healthy societies, and restored ecosystems await if we heed his urgent and wise prescriptions.

Michael Shuman with Small-Mart has done a great service for all of us who care about maintaining/growing local communities. I usually glaze over as friends argue back and forth about national and global economic strategies but the author has brought economic development home in ways I can understand and act upon. With LOIS (local ownership and import-substitution) and TINA (There Is No Alternative to the Wal-Marting of America) and self-effacing humor, he goes beyond bashing "big box" retail stores and makes a strong case for supporting independent businesses in all sectors. As someone who has long worked in support of local rural health care, I know that communities will respond when offered good local options. But I have seen, as argued by Small-Mart, LOIS cannot win over TINA "unless we as consumers, investors, and policymakers fundamentally change" the choices we make. This book is a must read for those who care about living and working in strong local communities, rural or urban.

We need a word of mouth "revolution". Because let's face it the mainstream media will ignore books like this. This is a great follow-up to Michael's first book Going Local. Yes "buy local" has become a bit trendy, but you won't find any elitism here. This is an argument for self-reliant communities with all of the positive traits that go with that: diversity, culture, civic values. It is not an argument for banning corporations (just corporate subsidies). The message is that small business can compete. The whole concept of specialized economies is bunk and Shuman clearly makes his case. The niche economies favored by neo-liberal economists are incredibly vulnerable to the slightest disruption. If the factory owner decides to move ovewrseas the whole town is decimated. This book is a recipe for success and everyone has a role to play. Public officials, investors, consumers, planners and entrepreneurs all need to get on board.