The ability of any city to attract or retain the headquarters of an average-size company is worth $3 million to $10 million per year in public contributions to local nonprofits, in a recent post from the Harvard Business Review. The effect seems to be due to the number of wealthy individuals present in the region rather than to the company’s direct contributions. A new headquarters yields, on average, some 275 additional individuals with income over $100,000.
This supports a statement from Local First Arizona about how a much larger percentage of money spent with a locally owned business will stay in the local economy.
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