Did you know there’s an annual event for small businesses? It’s called Small Business Saturday, which American Express started after the Great Recession of 2008. As of 2010, communities have an official way to support smaller companies during the holiday season.
This year, the event will happen on November 30, the Saturday after Thanksgiving. Small Business Saturday includes brick-and-mortar in addition to online companies. The point of the event is to encourage shoppers to support small businesses while showing how these companies are essential to local communities.
Keep reading if you’re interested in learning more and knowing how you can get involved.
When And Why Did Small Business Saturday Begin?
As most people know, the holiday shopping season kicks off with Black Friday. It’s the day after Thanksgiving and people are eager to get a head start on tackling their gift lists for loved ones. Major retail chains capitalize on this enthusiasm by offering deep discounts on doorbuster items. The chains also offer reasonable pricing on other popular gift items, in addition to products households typically buy during the holidays.
Major chains have the advantages of big marketing budgets, brand name recognition and steep discounts to draw shoppers in. Small Business Saturday launched on November 27, 2010, as a way to help level the playing field. The federal government got behind the idea in 2011 by passing a resolution to make the Saturday after Thanksgiving Small Business Saturday. Since 2015, the Small Business Administration has also co-sponsored the event.
Essentially, Small Business Saturday is an initiative to stimulate interest in shopping locally. Small business owners tend to reinvest more of the money they earn in their communities. In addition, they usually hire locally, helping to stimulate the area’s economy. Small Business Saturday lets small companies increase visibility, provides marketing support and keeps sales revenues local.
Growth Over Time
Since Small Business Saturday’s inception, U.S. consumers have spent an estimated $184 billion on that day, since 2012. This figure includes spending at smaller retail outlets, local establishments and online small businesses during the event. A 2023 survey found that 36% of Americans planned to shop during Small Business Saturday, with the most popular item being clothing.
Gen X was the age cohort most likely to participate at 55%, followed by Boomers at 54%. Millennials and Gen Z weren’t too far behind at 53%. Besides clothing, the next most popular items were arts and crafts, interior design products for the home and books. In-person patronage isn’t required, either. For those crowd-adverse shoppers, going online to check items off gift lists or ordering take-out works, too.
However, participating in Small Business Saturday can also include patronizing a locally-owned coffee shop for holiday flavors. Instead of getting refreshments at a national chain, try out a mom-and-pop bakery or café for lunch. Last year, over $19.8 billion was spent at local businesses during Small Business Saturday.
Support Of Small Businesses
Small companies are manufacturing businesses with 500 or fewer employees. To meet the Small Business Administration’s definition, a non-manufacturing company can have average annual revenues of less than $7.5 million. American Express provides online resources to small companies that also accept the creditor’s card. These resources include marketing tools for initiatives like Small Business Saturday, including access to neighborhood champions.
Participants will also show up on a map consumers can search to find local businesses. Shoppers can search the online tool whenever they want to support homegrown companies. Small Business Saturday is a great time to start, but consumers can use the tool to patronize these companies year-round.
Residents wanting to pledge their support can use the tool to discover and map out small businesses. Make a list of shops with items on your list or gifts you think your loved ones might appreciate. Check to see what online, curbside pickup and delivery options these businesses have. You might be surprised to learn the full range of services local shops offer. If you are a small business owner and want to participate, you can check out the FAQs on the Amex site.
Local Community Support
Small Business Saturday is an initiative meant to highlight the importance of supporting local economies. American Express’s research shows for every dollar spent at a small business, $0.68 stays in the surrounding community. In addition, every dollar spent at local shops generates $0.48 in the community’s business activity.
Shopping at companies owned by an area’s residents can bring multiple benefits, including local jobs and support for nearby schools. Participating in Small Business Saturday is one way to invest in your community’s present and future. It may seem like a tiny gesture, but it can create a ripple effect that ends up making a long-term impact.
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