How local ownership enhances community economic stability.

Local community ownership of enterprises improves economic stability

The community has a greater say in the firm. Profit agencies owned by citizens, for example, where only members of a community are permitted to acquire shares, are one example of such firms. A structure like this would increase community friendliness by providing the community greater input in how the business is run, ensuring that they profit more, for example, by prohibiting outsiders from acquiring shares (Schumann 101).

Employee loyalty can be influenced by local ownership

In a variety of ways. For example, most local businesses are small in size which means they have fewer employees which makes it possible for the employer and employee to have a personal relationship (Halbelsleben & Tolbert 5). This then builds up trust between the employer and the worker which makes the worker more loyal to the business. Having fewer workers also makes it possible for the workers to co-operate more easily. A local business also makes it possible for the owner to frequent the business or to be always present which can motivate the workers and make them more committed to their job.

Local ownership and civic welfare

The degree of local ownership is often the barometer used to measure civic welfare and socioeconomic well-being within the community with the assumption that the local is more socially just and environmentally sustainable which is not always the case (Shuman 111). I tend to disagree with this since I think locally owned businesses consider the welfare of the local residents more than non-local businesses since also living in the locality of the business they are directly in touch with the situation on the ground. However, I think more should be looked into this issue.

Works Cited

Halbesleben, Katie L., and Charles M. Tolbert. “Small, local, and loyal: How firm attributes

affect workers’ organizational commitment.” Local Economy29.8 (2014): 795-809.

Shuman, Michael. “Relocalizing business.” World watch Institute, State of the World (2010):

110-115.