Today is Small Business Saturday, and although it’s not associated with the shopping hysteria of Black Friday’s frenzied shoppers waiting in long lines just to get rock-bottom prices on electronics, bedding, toys and more, the day certainly is significant in its own right. Started in 2010 by none other than American Express, the shopping day sandwiched between Black Friday and Cyber Monday encourages customers to shop at locally-owned businesses as opposed to big-box chains.
Last year, 100 million people shopped locally on the Saturday following Thanksgiving. Since large retailers report as much as 30 percent of their annual revenue is earned during the holiday shopping season, encouraging customers to spend holiday budgets with small businesses can certainly help bolster local economies.
“Small businesses are the backbone of our economy and the fabric of our communities,” said Karen Mills, administrator of the Small Business Administration. “Over the last two decades, small and new businesses have been responsible for creating two out of every three net new jobs in the US, and today over half of all working Americans own or work for a small business.”
The effort has gained steam in each of its three years. The Small Business Saturday official Facebook page generated more than 3 million likes as of Nov. 21, a 400,000 increase from last year. American Express has also encouraged its cardholders to participate in Small Business Saturday by offering a $25 credit for any $25 or higher purchase at qualifying small businesses nationwide on Nov. 24.
“Last year, Small Business Saturday gave a boost to Main Street businesses all across the country, with more than 100 million people shopping at independently-owned small businesses,” Mills said. “And this year we can do even better. It’s a chance to say thank you to the small business owners who do so much for our communities.”
Several factors motivate shoppers to frequent local businesses on Small Business Saturday as opposed to large retailers on Black Friday. Obviously, shopping locally helps the local economy.
“For every $100 spent at a locally-owned business, an average of $45 goes back into the local community,” Julie Applegate, director of Illinois’ Morris Downtown Development Partnership told McClatchy-Tribune Information Services. “For every $100 spent at big box stores, only $14 comes back.”
Likewise, money spent on Main Street helps the local business owner send their child to college rather than helping a CEO buy a private jet or vacation home. But Small Business Saturday is also a quitter shopping experience. Shoppers don’t have to wait in long lines, search for parking spaces or wrestle one another for items. Even President Obama was able to support a local Washington business last year, when he took daughters Sasha and Malia to an indie bookstore, something security would not allow for in the mobs that come with Black Friday.
“You doing some Christmas shopping? Not yet?” he asked. “Well, we’re starting early. This is ‘Small Business Saturday,’ so we’re out here supporting small businesses,” the President said, according to news reports.
