Small Business Saturday is annually celebrated on every Saturday after Thanksgiving in the United States. This year it falls on November 26th.
This holiday is counterpart to Black Friday and Cyber Monday, which feature big box retail and large e-commerce stores. Instead this day encourages people to shop from local or small businesses to support the local economy first.
The day also serves as an opportunity for small businesses to learn and upgrade their branding, such as by creating an online presence or working with micro-influencers for promoting their brands and all. Financial support is also offered to them by many organizations on this day.
|Event||Small Business Saturday|
|Date||November 26, 2022|
|Significance||The day encourages people to shop from local or small businesses to support the local economy first.|
|Observed by||United States|
Small Business Saturday History:
Small Business Saturday for the first time was observed on November 27th, 2010. It was a marketing initiative created and promoted by the American Express credit card brand to encourage holiday shopping on the Saturday after Thanksgiving in the United States, during one of the busiest shopping periods of the year. The U.S. Small Business Administration (SBA) joined as a cosponsor five years later. SBS has become an important part of how many small businesses launch their busiest shopping season.
The U.S. Small Business Administration was created in 1953 which helps Americans start, build, and grow businesses. It is an independent agency of the federal government built to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of the nation. Among other things, the SBA provides small businesses with access to capital, entrepreneurial development, government contracting, and advocacy.
The first event was created by American Express, in partnership with the non-profit National Trust for Historic Preservation, Boston Mayor Thomas M. Menino, and Roslindale Village Main Street. In 2010, the holiday was promoted by American Express via a nationwide radio and television advertising campaign. That year Amex bought advertising inventory on Facebook, which it in turn gave to its small merchant account holders, and also gave rebates to new customers to promote the event.
According to the 2018 SBS Consumer Insights Survey, total reported spending among U.S. consumers who said they shopped at independent retailers and restaurants on the day reached a record high of approximately $17.8 billion. The same survey reported that more than 70% of consumers are now aware of the Small Business Saturday initiative. Based on this annual survey over the years, SBS spending has now reached a reported estimate of $103 billion since the day began.
Small Business Saturday Significance:
Ever since the Industrial revolution we saw the rise of the American shopping industry, and the decades since have seen large chain retailers further cementing their position in terms of taking over the retail sphere and displacing smaller, family-run businesses. This model has spread further throughout the world, and chain retailers have been usurping small businesses’ market share worldwide in the last few decades. That being said, the difference is most stark in countries like the US, where small businesses have often been obliterated within a year or two by some large chain retailers.
These large retailers or e-commerce giants poses a threat for the sustainability of small scale businesses across the country. As overwhelming majority about 99.7% of the all businesses operating today in the US are actually small businesses. As these are not just limited to convenience stores or food chains, infact a large amount of the small businesses in the United States are startups and tech-based. Hence supporting all of these businesses is not just for uplifting them but it also very essential for the economy and future of the country as well.
Small businesses often face a variety of problems, some of which are related to their size. A frequent cause of bankruptcy is under capitalization. This is often a result of poor planning rather than economic conditions. It is a common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to the anticipated expenses. In the United States, some of the largest concerns of small business owners are insurance costs (such as liability and health), energy costs, taxes, and tax compliance.
A business can't actually function well without the people keeping it afloat, and with all of the new startups being created almost every day, it is no wonder that small businesses account for employing the most people in the United States! The inception of each new business creates a bunch of new jobs along with it, needing someone with the appropriate skills to fill the position. So when you support small businesses, you support the many people helping to keep it running. Hence this day encourages people across the country to support small businesses on this shopping season.
Small Business Saturday Activities:
To celebrate Small Business Saturday, as a consumer, you can choose to spend your money at local small businesses on this day rather than going to the big-box retailers at the local mall. After all, the best way to support small businesses is to go and spend money at them rather than somewhere else. So do make the use of this opportunity by supporting local firms.
You can also tell your friends to do the same, perhaps making a point of organizing a shopping day where you only visit small, local enterprises instead of chain stores. While you may or may not end up paying more, it is important to remember that spending your money at a small business generally puts more money into the local economy than if you’re spending that money in a chain store.
Small Business Saturday only lasts for one day, but you're now acquainted with your local shops. Don't let another year pass before your next visit! For small businesses to succeed, they need our support throughout the year and not just for a day so from now on try to support more and more local businesses by using their products and services.
Some small business owners find that Small Business Saturday is a great time to run marketing promotions, as they can further capitalize on the increased foot traffic (from the already busy holiday shopping season), and on their online traffic. If you own a small business, you can run some promotion for the day, and otherwise, put up a post on your social media.
Most Searched FAQs on Small Business Saturday:
1. When is Small Business Saturday celebrated?
Small Business Saturday is annually celebrated on every Saturday after the Thanksgiving in US.
2. What is the purpose of Small Business Saturday?
Small Business Saturday encourages consumers to keep it close to home when buying gifts this holiday season. Spending money locally helps everyone in the community prosper.
3. Who started Small Business Saturday?
American Express began Small Business Saturday in 2010 as a way provide a jolt to local businesses still hurting from the Great Recession.