In 2019, two competing biscuit businesses in Fayetteville, North Carolina, caused an uproar by both claiming to be “local” establishments. The Fayetteville Observer asked readers to weigh in on whether the two establishments, Vicky’s Biscuits & Chicken and Biscuitville, could claim to be local — and define what local means to them. The results were complicated.
The definition of a local business is often in the eye of the beholder. However, there are some characteristics that many consumers look for when they decide to “shop local” or “support local businesses.” Rather than being a strict definition, “local” often connotes an ethos and set of values that you can capture in your marketing outreach.
[Read more: State of American Business 2025]
What do customers view as “local”?
As the great biscuit debate demonstrated, “local” means different things to different people. As the Fayetteville Observer summarized, “One person wrote that local meant, ‘Owned by people who live in the same town.’ Another wrote: ‘It’s a local business if they pay local taxes and employ local residents.’ Still another wrote: ‘Locally-owned means that said business has originated within the vicinity …’”
In general, a local business is one with a physical presence in a specific community that serves nearby customers. Local businesses are perceived as rooted deeply in the community, meaning they employ local people, give back to local causes, and attract customers (and therefore revenue) to the area.
The term "local business" is often used interchangeably with “small business.” Small businesses are defined by either their number of employees or sales. For instance, the Small Business Administration determines size based on the average annual receipts or the average number of employees.
Regardless of these technical details, consumers perceive local businesses as those invested in supporting their communities either by employing residents, volunteering and donating, participating in events and business associations, or contributing to the economy.
Local businesses are perceived as rooted deeply in the community, meaning they employ local people, give back to local causes, and attract customers (and therefore revenue) to the area.
How to market yourself as a local business
Promoting your business locally includes a combination of online tactics and in-person marketing initiatives. The online tactics can help you get discovered by new customers; in-person marketing personalizes your business and helps customers put a face to the name.
Start by adding your business to local online platforms. Create a Yelp Business Page, Google Business Profile, and Nextdoor profile. Likewise, many communities have their own online directories of local businesses. Listing your business in these directories can increase your online visibility and drive traffic to your website or physical store.
Outbound marketing can also focus on local customers. All social media channels have a way to target your ads to specific regions. Take advantage of outreach opportunities unique to your area, too. “Local newspapers, radio spots, coupon books, movie theaters and sponsorships are some of the best ways to promote your brand to local consumers,” wrote Business News Daily.
It’s just as important to get offline, too. “Showing that you’re a contributing member of your local community and genuinely care can go a long way with prospective customers,” wrote Yelp. Look for opportunities like fundraisers, volunteering, or local events that your business can participate in to give back to the community while subtly spreading brand awareness.”
In all your efforts, try to be authentic and consistent. Speak to the needs of local consumers. Add a personal touch when possible — by greeting customers by name, remembering birthdays, or staying open late during busy shopping periods.
The Fayetteville Observer concluded that local businesses are those that invest in their community in the form of time, money, or another meaningful metric. Showcasing the work that you do to create jobs, sponsor local causes, or bring products or services to your area can go a long way to cementing your reputation in your area.
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