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Friday, December 2, 2022

Small Business Saturday

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Small Business Saturday is an annual event that was created to encourage consumers to shop locally in person and online at small businesses. This event takes place every November and represents a significant opportunity to increase sales for small businesses during the holiday shopping season.

The concept was first introduced by American Express in 2010 as a way to put small businesses in the spotlight amid the recession that occurred following the 2008 financial crisis.

Key Takeaways

  • Small Business Saturday was introduced by American Express in 2010 as a way to promote small businesses in the wake of the Great Recession.
  • This annual event takes place every November between Black Friday and Cyber Monday.
  • In 2011, the U.S. Senate passed a resolution to support Small Business Saturday, and participation in the event has expanded to all 50 states.
  • Consumers spent a record $23.3 billion shopping on Small Business Saturday in 2021.

What Is Small Business Saturday?

Small Business Saturday is a one-day event that takes place every November on the Saturday after Thanksgiving. In 2022, it lands on Nov. 26.

The event was created in 2010 by American Express as a means of encouraging support for small businesses during the Great Recession. In 2011, the U.S. Senate passed a resolution supporting Small Business Saturday. The event has since grown nationwide, with participation in all 50 states.

Small Business Saturday falls between Black Friday and Cyber Monday, when consumers may already be shopping online or at well-known retailers to prepare for the holidays. By focusing on small businesses, the purpose of the event is to highlight their importance in local communities, so they aren’t overshadowed by larger companies.

Small Business Saturday is designed to support all online and brick-and-mortar small businesses, not just those that accept American Express as a payment method.

Who Participates in Small Business Saturday?

First and foremost, this event is intended to encourage consumers to shop at small and locally owned businesses. That includes retail stores and restaurants as well as other small businesses, such as salons, grocery stores, and service-based businesses. It also extends to small businesses that exist online.

In terms of what constitutes a small business, the U.S. Small Business Administration (SBA) offers a broad definition: generally any business that has fewer than 500 employees. Following those guidelines, Small Business Saturday could include businesses that operate as sole proprietorships and partnerships, as well as small corporations and/or limited liability companies (LLCs).

American Express offers an online search tool to help consumers find small businesses in their area that they can support on Small Business Saturday and all year round. The Shop Small map includes a variety of businesses that participate in the event via in-person shopping as well as online shopping.

Businesses must meet American Express guidelines regarding size and payment acceptance to be added to the Shop Small map.

How Small Business Saturday Benefits Small Businesses

The main goal of this event is to give small businesses a revenue boost during the holiday shopping season. Based on the numbers reported by American Express, it would seem that the event has been successful at reaching that goal.

For example, it’s estimated that in 2021, consumers spent a record $23.3 billion on Small Business Saturday in support of local businesses, up 18% from $19.8 billion in 2020.

While the amount spent on Small Business Saturday is a tiny part of the more than $800 billion in retail sales that take place over the holiday season, one statistic stands out: American Express estimates that for every dollar spent at a small business in the United States, 67 cents stay in the local community. By shopping small, consumers can help boost businesses in their own backyard and promote a healthier local economy.

$163 billion

The amount American Express estimates shoppers who participated in Small Business Saturday have spent since its inception in 2010.

How to Participate in Small Business Saturday

The best way to support Small Business Saturday as a consumer is to buy locally and encourage friends and family to do the same. That includes shopping at local brick-and-mortar businesses as well as at small businesses that operate online. For example, you may choose to support an online boutique or a digital service-based business. You can also use the #ShopSmall hashtag to promote the event on social media.

If you’re interested in participating in the event as a small business owner, American Express offers a number of tools that can help. They include promotional materials, such as posters and signage that can be used in your store if you operate a business with a physical location, as well as digital marketing materials. These are provided free of charge to businesses that are American Express merchants.

Small business owners can also prepare for the event in other ways, such as:

  • Creating special sales events to encourage spending on Small Business Saturday
  • Conducting email marketing campaigns to inform customers of Small Business Saturday sales events
  • Offering special promotions or discounts as incentives to get customers to shop
  • Partnering with other small businesses to raise awareness surrounding Small Business Saturday

Aside from helping small business owners to market themselves for this annual event, American Express offers special discounts and promotions to help businesses save money. The company also aids small business owners in identifying shopping trends to make the most of Small Business Saturday sales events.

The event also gets assistance from Neighborhood Champions, which are organizations that promote Small Business Saturday locally. These organizations include local libraries, visitor centers, chambers of commerce, and other local business associations. Neighborhood Champions can sponsor their own events to market the event and encourage people in the area to get out and shop small businesses. As a consumer, you can support Neighborhood Champions in your area by volunteering with one of these organizations if available.

When Is Small Business Saturday?

Small Business Saturday takes place the Saturday after Thanksgiving in the United States. For 2022, Small Business Saturday is Nov. 26.

What Resources are Available to Small Business Owners?

American Express provides a variety of promotional materials ranging from posters and signs to digital marketing materials that can be customized. For businesses that are American Express merchants, they are provided at no cost.

How Much Money Do Small Businesses Put Back into Their Communities?

According to American Express, 67 cents out of every dollar spent at a small business in the United States go back into the local community.

The Bottom Line

Small Business Saturday presents shoppers with a unique opportunity to show support for local businesses. It’s important to remember that this event is designed to encourage people to shop small not only during the holidays but also at any time of the year. By buying locally, you can help small business owners keep their doors open and provide jobs and tax revenue to your community. As a small business owner, taking part in this event could help provide a cash flow boost during the holidays.

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