Support Local Businesses, Support Santa Monica
June 20, 2018 5:30 PM
by Constance Farrell
Santa Monica benefits from having a vibrant and diverse business community that provides a wide range of goods, services and jobs that contribute to the economic wellbeing of our community.
Each year, Santa Monica businesses generate more than $160 million to the City’s General Fund through sales and use taxes, business licenses and transit-occupancy taxes, which help fund essential local services including police, fire, parks and libraries.
Santa Monica’s creative economy and efforts related to sustainable innovation, combined with its strength in the technology, retail, entertainment, hospitality and medical sectors, comprise a robust and diverse base of businesses. Some noteworthy new businesses opening and/or expanding in Santa Monica this year include Awesomeness.tv, Kite Pharma, Lunetta and Snap.
Please see the BID (Business Improvement Districts) spotlight for additional business activity in each of our commercial districts.
In addition to generating revenue to fund essential programs and services in our community, Santa Monica businesses are also a major funding source for our schools. Through Measure GSH and Y—a sales-anduse tax that voters overwhelmingly supported—every purchase made at a Santa Monica business generates funding for the Santa Monica-Malibu Unified School District. Last year’s Measure Y proceeds were $16 million, just from the power of “buy local” efforts!
In addition, every purchase made at our local businesses is expected to generate an additional $8 million each year for school repairs and improvements, and to fund the construction and preservation of affordable housing, as well as investments in homelessness efforts. Buying local is incredibly important to our community. Our local economy is not guaranteed to stay as robust as it is today. Indeed, we are already starting to see an increase in retail vacancies as the effects of e-commerce, changing demand and rising operating costs impact our local businesses. Since a portion of every dollar spent at a Santa Monica business is re-invested back into our local community, making a conscious effort to think local first by purchasing goods and services, shopping and eating locally helps support our community and ensures that our residents continue to enjoy the level of services and amenities that the City of Santa Monica is currently able to afford to provide.
In spite of economic pressures, many of our local businesses and organizations continue to strive to be exemplary role models in the community. In April, we honored the achievements of these 2018 Sustainability Quality Awards (SQA) winners: PS1 Pluralistic School, Arthur Murray Dance Center Santa Monica, Global Green, Groundwork Coffee LLC and Unitarian Universalist Community Church of Santa Monica. Now in its 23rd year, the SQA recognizes businesses that are successfully putting sustainable practices in action. We also recently celebrated our 30 Most Loved Santa Monica Businesses, all selected by the public.
The City of Santa Monica Economic Development team is committed to promoting a sustainable and vibrant economy in Santa Monica. We foster partnerships to support businesses and community goals. We oversee the leasing of Cityowned commercial properties that provide opportunities for start-up businesses and entrepreneurs. Our staff delivers programs and services to support local businesses, assists the City’s four business improvement and property assessment districts, and operates the four weekly Santa Monica Farmers Markets, as well as manages the Santa Monica Pier. All of these responsibilities help enhance the quality of life in Santa Monica.
To learn more about the City’s economy, visit smgov.net/business and BuyLocalSM.com.
Fun Facts
• Santa Monica is home to approximately 9,400 businesses that collectively employ approximately 88,000 people.
• The City’s leading industries by employment are: Accommodation (16% of the City’s total employment), Information (15%), Professional, Scientific and Technical Services (15%) and Health Care and Social Assistance (13%).
• In addition to generating revenue for our City, our local businesses are also important for providing amenities to our residents. You can enjoy the sun, refreshments and a meal, with outdoor dining at 72 Santa Monica restaurants.
• 860 businesses participate in the Buy Local Santa Monica campaign, employing 3,600 local residents. 50% of these businesses are locally owned.
Authored By
Constance Farrell
Communications & Public Information Manager