The Importance of Small Business Saturday
by Courtney Hartford on Nov 26, 2020
This year, Small Business Saturday is more important than ever. Although this holiday season will look a lot different, consumers can still do their part by shopping online at small and local businesses on November 28th.
What is Small Business Saturday?
Small Business Saturday happens every year the Saturday following the Thanksgiving holiday where American consumers are encouraged to shop small and local to help the economy for small retail businesses.
According to the SBA, a small business is defined as one that has fewer than 1,500 employees and a maximum of $38.5 million in average annual receipts, although this varies by industry. Retail businesses are considered small businesses if annual receipts amount to $7.5 million or below.
Why It’s Important Now More Than Ever
Did you know small business is the backbone of U.S. economy, making up 99.4% of all employers in the state? The alarming fact is that 97,966 businesses have permanently closed since the pandemic. Recent data from Yelp's Local Economic Impact Report shows that more than half of the businesses that closed this year will not be reopening.
45% of Small Businesses are Women-Owned
A recent report from tech company UENI found women make up 45% of all small business owners in the U.S. in 2020. That’s a five percent increase from last year’s number at 40%, which will only increase since women are starting small businesses two times faster than men.
4 reasons you should shop small year round:
- Local Causes: Your local businesses donate to local causes which benefit your community. Whether it be a homeless shelter, animal shelter, or an annual local event— small businesses are the backbone!
- Support Diversity: When you use your dollar to support local and small, you are supporting businesses that tend to represent demographics such as minority-owned and women-owned. Local shops also tend to carry more diverse selection of products made by local artisans.
- Shop Online or Buy Gift Cards: If you can’t shop in person or want to avoid crowds, shop small businesses online or order by phone and take advantage of local delivery or pickup. Or buy gift cards and gift certificates you can redeem once things get back to normal.
- Don't Forget Your Restaurants: Small and local food restaurants and businesses were hit hardest during the pandemic. If you want to support your favorite local restaurants, order delivery and don't forget to tip!