Small Business Saturday is an annual event held on the Saturday following Thanksgiving (this year on November 25, 2023). First held in 2010, Small Business Saturday has become an important day to show appreciation for the small businesses that are the backbone of our nation's economy.
Small Business Saturday encourages Americans across the country to support local small businesses. This day is a day to inject capital into local economies, promote vibrant and diverse communities, and celebrate the important role of small businesses in the national economy.
Here's what you need to know about Small Business Saturday and how you can support local businesses year-round.
How did Small Business Saturday start?
In 2010, American Express launched “Small Business Saturday” to encourage small business holiday shopping in an effort to support local small businesses, many of which had been hit hard by the recession. raised. One year after its inauguration, local government officials across the country began to take notice and promote the day. In 2011, the Senate unanimously passed a resolution in support of Small Business Saturday, and by 2012 he started having officials from all 50 states participate, and they have done so every year since.
This day has become an annual holiday shopping tradition.
What are the implications of doing some shopping during the holidays?
There are 33.2 million small businesses in the United States, representing 99% of all businesses. Over the past 20 years, small businesses have accounted for approximately 40% of the U.S. gross domestic product (GDP), representing trillions of dollars of economic activity.
By designating a day to commemorate these companies, we are reminded that these companies rely on our patronage not only throughout the year, but also during critical consumer shopping seasons.data from quickbooks It has been shown that up to 65% of small businesses' annual revenue was generated during the holidays last year.
According to the study, small businesses are expected to see a 42% increase in consumer spending during the holiday season this year, increasing from $88 billion to an estimated $125 billion. This equates to an average of about $485 of the amount each consumer has allocated to make small purchases this year.
QuickBooks notes that despite economic instability and an environment of fluctuating inflation and interest rates, small purchases are here to stay among consumers.
Vacation advice for small business owners
Maximize your sales this holiday season with the Small Business Saturday Guide. Plus, read our expert tips for taking advantage of other major shopping days like Cyber Monday, Giving Tuesday, and Black Friday.
How does shopping at small businesses contribute to the local economy?
When you support local businesses, you also support your town, city, and neighborhood by paying sales tax. Sales taxes support public schools, parks, roads, and sidewalks, as well as funding public employees such as firefighters.
“It may be hard to see, but local money comes back in many forms,” said Victoria Kidd, owner of Hideaway Cafe in Winchester, Virginia.
Supporting small businesses supports local communities because small businesses are deeply connected to local communities.by Q4 2022 MetLife Life and U.S. Chamber of Commerce Small Business Indexalmost all small business owners agree that community involvement is important to their business, including hosting and sponsoring community events, donating to local charities, and collaborating with other local businesses. We are active in giving back in a variety of ways, including forming partnerships.
Are there other benefits to shopping small?
yes! Products found at small businesses are often handcrafted in small batches, resulting in one-of-a-kind products. Local stores may also be able to offer customized products, hands-on service, and other personalized services that aren't available at big-box stores. In fact, according to NerdWallet, 37% of Americans say they buy from small businesses for a more personal experience.
Additionally, consumers who want to avoid the stressors of holiday shopping are favoring small businesses. According to QuickBooks, nearly 3 in 5 consumers (59%) say shopping at small businesses is less stressful than shopping at big box stores. Almost half (49%) of these consumers expect to spend more at small businesses this holiday season. Three in five (61%) consumers say they find the best small business deals in person.
How can I support local small businesses?
Let's shop small! No matter where you live in this country, know that your community greatly benefits from restaurants, retailers, manufacturers, and service providers that create jobs and promote economic growth in your area. There is no mistake.
Support small businesses in your area and shop local, especially on Small Business Saturday, November 25th. Be sure to share your Shop Small experience on social media using #ShopSmall and thank the stores you visit for their contribution to the neighborhood.
small online shopping
As the digital economy grows, more and more entrepreneurs are starting or moving their businesses online. Most consumers (43%) Plan to shop equally well online and in person. Looking ahead to this holiday season (only 28% say they plan to shop primarily in person, 29% say they plan to shop primarily online).
It's clear that consumers prefer online options. 73% say they are more likely to buy from a small business if they have a buy online, pick up in store or home delivery option.
“During the pandemic, when people didn't have access to traditional brick-and-mortar stores, it was really important to have another channel to generate business,” said Hulagu Kalebjian of Henry's House of Coffee. Ta.
The U.S. Chamber of Commerce is proud to represent millions of small businesses in communities across America. As you shop for gifts this season, don't forget about the many small businesses that support our local economy and employ our friends and neighbors.
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The U.S. Chamber of Commerce works every day to fight for policies and regulations that benefit small businesses and help them grow and succeed with tailored resources and expert insight.
About the author
Lindsay is a Senior Manager in the Communications and Strategy team. She previously worked as a writer and editor at U.S. News and World Report.