With small businesses accounting for 45.9% of employment in the United States and generating roughly 44% of U.S. economic activity, there’s no denying that buying locally can be powerful. Although many look to corporate giants like Amazon, Target or Best Buy for holiday deals on Black Friday or Cyber Monday, there is a day this week spotlighting local small businesses: Small Business Saturday.
Today, we’ll dive into the history of this day, take a look at the impact small businesses have on their local communities, and explore how you can find local small business stories any time of year.
What is it?
Small Business Saturday was created in 2010 by American Express “to encourage people to Shop Small and bring more holiday shopping to small businesses.” Although it started as a marketing initiative, the U.S. Senate voted unanimously to recognize the day in 2011 and all 50 states were participating by 2012. The day is officially cosponsored by the U.S. Small Business Administration (SBA), with a focus on supporting small businesses, empowering local communities, and sharing resources to help small businesses continue to grow.
Although some businesses advertise holiday deals or other promotions, others use Small Business Saturday simply to get their name out in the community and build connections with new and returning customers. You may find that some small businesses extend their hours, hold contests or prize drawings, or even collaborate with other small businesses in their area.
Local impact
In 2023, U.S. consumers spent an estimated $17 billion during Small Business Saturday. Holiday season shopping is vital to small businesses’ bottom line. An Intuit Quickbook Report found small businesses expect a third of their yearly revenue to come from holiday sales this year.
When money is spent locally, it has been shown that a majority of it stays in the local community in which it’s spent. The 2022 Small Business Economic Impact Study found that “every dollar spent at small businesses creates an additional $0.48 in local business activity as a result of employees and local businesses purchasing local goods and services.” Due to the local multiplier effect, choosing to shop at a local independent retailer can generate roughly three times as much local spending as shopping at a corporate chain would. Local businesses are more likely than their larger competitors to use that money locally for their employment, inventory, utility, and other needs, generating ripple effects that continue to benefit the local economy far beyond the initial purchase.
Stories in your community
Since Small Business Saturday has become popularized, many cities have their own local events that make it easy for small businesses to get involved. Try looking on your city’s website or social media pages to see what’s available in your own community. Some cities have a standing page on their website to help residents discover local businesses they can support any time of the year.
You can also find small businesses in your area by visiting American Express’s online search tool, or follow what’s happening on social media with the branded hashtags #ShopSmall and #SmallBusinessSaturday.
