Written by Matt Alexander @therealazmatt
As the holiday shopping season unfolds, the spotlight is on Small Business Saturday, a campaign that has evolved into a vital force shaping consumer behavior and fostering economic resilience within local communities. Launched by American Express in 2010, this shopping holiday, observed in all 50 states, has become a crucial element of supporting small businesses throughout the holiday season.
The Economic Landscape
Small businesses, defined by the U.S. Small Business Administration (SBA) as those with up to 500 employees or $7.5 million in average annual receipts, form the backbone of the American economy. According to the SBA, there are 28.8 million small businesses in the country, accounting for 99.7% of all businesses. These have played a pivotal role in job creation, contributing 64% of new jobs in the U.S. between 1993 and 2011.
The Impact of Small Business Saturday
Small Business Saturday, occurring on November 25th, is more than just a one-day event. According to an American Express survey, consumers have reported spending an estimated $184 billion at small businesses on this day since its inception in 2010. Over half (55%) of small business owners anticipated it would provide a significant contribution to their overall holiday sales again this year.
Consumer Sentiment and Support
Consumer sentiment toward Small Business Saturday is strong, with a YouGov survey revealing that 61% of holiday shoppers expressed intent to participate, surpassing the figures for Black Friday (56%). The emphasis on shopping locally aligns with evolving consumer values, as highlighted by the National Retail Federation, which predicted that 65.6 million shoppers would turn out for Small Business Saturday.
Economic Challenges and Resilience
Despite optimism among small business owners, challenges loom large. The National Federation of Independent Business reports a drop in the Optimism Index, reflecting ongoing concerns about inflation, rising labor costs, weaker sales, and staff shortages. However, a companion American Express survey indicates that 80% of small business owners maintain a positive outlook for holiday sales.
Community Impact and Giving Back
Small businesses not only contribute economically but also play a crucial role in community support. A Civic Economics Study in Grand Rapids, Michigan, reveals that if you spend $100 at a local business, approximately $68 stays in the local economy, compared to $43 when spent at a larger business. Small businesses also donate 250% more than larger businesses to non-profits and community causes, reinforcing their role as community pillars (Source: Seattle Good Business Network).
Looking Forward For Small Business Saturday
Following Small Business Saturday, the stakes are high for small businesses seeking to capture a share of consumer spending. The event, which spans the entire holiday shopping season, is positioned to connect eager shoppers with their local businesses, supporting economic growth and community well-being.
In the face of challenges, small businesses are counting on the continued support of consumers who recognize not just the economic impact but the unique value, community connection, and philanthropic contributions that local businesses bring. As Small Business Saturday unfolds, it serves as a powerful reminder that from these small seeds, great things can grow, shaping the economic landscape and fostering a sense of community resilience.