Consumers prefer Small Business Saturday to Black Friday?

9 min read

As the less familiar Small Business Saturday approaches on a tide of eager consumer spending and substantial government support, the less celebrated event will aim to maintain its winning streak for the almost 32 million small businesses nationwide, even as retail giants such as Amazon and Walmart anticipate hefty profits over the next few days.

It has been found that 55% of small business owners anticipate that Small Business Saturday this year will have a significant impact on their overall holiday sales, according to a recent survey by American Express of small business owners. According to a consumer study conducted in October, half of participants indicated they would be interested in participating in Small Business Saturday, and 85% indicated they would be more likely to purchase from a small business this Christmas season.

During the previous 13 years, it has been reported by the corporation that consumers spent close to $184 billion to support small businesses on Small Business Saturday. A study conducted by American Express found that 72% of consumers who responded to the study stated that Small Business Saturday had encouraged them to dine and shop at small, independent businesses all year long, as a result of the campaign. According to American Express, consumers spent close to $18 billion last year as a result of the Small Business Saturday holiday.

In order to promote small businesses owned by veterans and military spouses, Veterans Growing America, an organization that promotes small businesses owned by veterans and military spouses, believes small business Saturday is an important event. Because of this, it increases the awareness of the need to purchase small items, thus encouraging people to do so.

Since the last several years have passed, we have definitely seen an increase in the number of people coming out and showing support for small businesses, he stated.

It is estimated that on a regular Saturday, Ken Moorman, the creator of Manassas, Virginia’s Jirani Coffeehouse, sees a 10% increase in sales in comparison to a Small Business Saturday.

It was huge before Covid, and it is starting to pick up again this year with this year’s Small Business Saturday. Moorman expects an even greater number of participants this year. We all know that small businesses are the backbone of the American economy. Every once in a while, it is great to remind everyone to take care of the little guy, especially during this time of the year.”

In 2010, American Express launched a campaign called Small Business Saturday which was designed to encourage Christmas shoppers to support small businesses in their communities. 

There has been an evolving trend in the industry that resembles Black Friday in the sense that it is often controlled by a handful of large national and international companies. There has been a co-sponsorship of the programme by the Small Business Administration since 2011

There is no doubt that this year’s holiday season will be a boon for small businesses, according to recent data from the federal government.

It is no secret that American Express has been a long-time advocate for small businesses – we work hard to gain a deep understanding of their needs and to meet them in the best way possible. According to a news release published last week by American Express’ chief marketing officer, Elizabeth Rutledge, the company also understands the importance of shopping small for supporting local communities through its annual Small Business Saturday and Shop Small campaigns all year long. As this year’s interactive experience kicks off the important holiday shopping season across the country, we hope to engage shoppers and engage them to support small businesses throughout the country this Small Business Saturday.”

Earlier this week, the Small Business Administration (SBA) released a press statement saying it had committed about $50 billion to assisting small businesses in the United States in the coming fiscal year 2023. 

The SBA reported in its annual report that it contributed $27.5 billion in 7(a) loans, which constitute the most important lending program for the SBA. Over 57,300 7(a) loans were secured by the SBA in total, with a maximum limit of $5 million for each individual loan. It would appear that the recovery of the relatively vulnerable 3(a) loans is progressing based on the fact that they have risen above pre-pandemic levels.

In a recent statement made by the U.S. Small Business Administration, Administrator Isabel Casillas Guzman said, “Starting and running a business is an extremely difficult endeavor requiring tremendous dedication, but it is also a task requiring capital – everything too many enterprising Americans lack the ability to obtain economically and equitably,” she said. 

In order to ensure small business owners have the access to the funding they need to grow and create jobs for our economy, the Biden-Harris Administration remains committed to simplifying and addressing persistent inequalities related to accessing capital… As we build on our progress, the SBA will continue to prioritize reforms that will help level the playing field in order to continue the small business boom fostered by Bidenomics.”

Furthermore, the Small Business Administration announced that during the past year, the SBA made progress in its efforts to assist small businesses owned by minorities.

During the Biden administration, there has been a double digit increase in the amount and value of loans made to Black-owned firms according to a recently released federal report. 

In the fiscal year 2023, a total of 4,700 of these loans were insured by the SBA, representing $1.5 billion in insured loans for the year. In addition to this, there are also 7,700 loans that have been made to Latino-owned small businesses, 7,500 loans that have been made to Asian American and Pacific Islander-owned small businesses, and 500 loans that have been made to Native American-owned small businesses.

Moreover, the SBA provided loans to veteran-owned businesses totaling $1.2 billion and to women-owned businesses totaling $5 billion, as part of its lending program.

You May Also Like

+ There are no comments

Add yours