Saturday, November 24th is Small Business Saturday. Nestled right in between Black Friday and Cyber Monday, the day has become an integral part of the American holiday shopping tradition, and its impact is felt not just within our communities, but nationwide.
Back in 2010, during the heart of the economic recession, small businesses were suffering, and many were closing their doors at an alarming rate. According to the SBA’s Advocacy branch, about 170,000 small business closures were reported between 2008 and 2010, prompting lending giant, American Express, to launch a campaign to help smaller retailers, companies, and services compete with the retail big-wigs. The resulting Small Business Saturday has since become one of the most impactful shopping holidays ever designed, but statistics show the trend dropped off in 2017 even though it was a good year in terms of both the economy and the stock market. In fact, on average, holiday consumers spent 6% more in 2017 than 2016 overall, but local, small business shopping dropped by 4% according to a report by cnbc.com.
Small Business Saturday is vitally important to our local economies, and that, in turn, boosts our national GDP by creating jobs, lowering unemployment, and supporting our economic recovery. For that reason, Grand Savings Bank is reaching out to the GSB community to encourage participation in the day. Shopping small businesses help communities thrive, and by keeping our spending dollars right here at home, we generate tax revenues that support our schools, improve our roads, and maintain our public services. Not only that, but shopping on Small Business Saturday gives consumers access to unique and innovative products not found in the big chain stores.
While what defines small businesses ranges pretty drastically (a small business can employ up to 1500 people for some industries according to the SBA, but most are limited to 500 employees or less), the common thread is that small businesses are independently owned and operated U.S. enterprises that don’t hold a major market share. In fact, small businesses make up 43% of U.S. payrolls and generate 65% of new jobs.
Whether brick and mortar establishments or online shops, small businesses are the backbone of the American dream and supporting them on Small Business Saturday helps keep that dream going. Small businesses are Mom & Pop diners and local eateries; they are the boutique your daughter loves and the neighborhood one-stop; they are familiar franchises at the local mall and the sporting goods store that sponsors your son’s baseball team; they are your Avon lady, the couple who sell their crafts online, and the salon where your Mom gets her hair done. Simply put, they are us! So, shop local small businesses this November 24th because it matters.
For small business owners, here are some ideas about promoting your business on Small Business Saturday.