Published
November 05, 2024
Small Business Saturday is an annual event that takes place on the Saturday following Thanksgiving (this year, November 30, 2024). First observed in 2010, Small Business Saturday has become an important day to show appreciation for the small businesses that are the backbone of our nation's economy.
Small Business Saturday encourages Americans across the country to support local small businesses. The day infuses money back into our local economies, promotes vibrant and diverse communities, and celebrates the important role of small businesses in the national economy.
Here's what you need to know about Small Business Saturday and how to support local companies year-round.
Shop Small 2024 Toolkit
Join the U.S. Chamber of Commerce in promoting shopping small, investing in local communities, and celebrating the important role of small businesses play in our economy throughout the holiday season.
How did Small Business Saturday start?
In 2010, in an effort to support local small businesses – many of whom were hurting during the economic recession – American Express launched Small Business Saturday to help drive more holiday shopping to small businesses. One year after the launch, local officials across the nation began to notice and promote the day. In 2011, the Senate unanimously passed a resolution in support of Small Business Saturday and by 2012 officials in all 50 states began to participate – and they have every year since.
The day has grown into an annual holiday shopping tradition.
This year, the U.S. Chamber of Commerce Foundation has partnered with American Express on a Small Business Hurricane Recovery grant program to support small businesses impacted by Hurricanes Helene and Milton. As part of that initiative, American Express will donate $1 for every purchase made on an American Express Card at a qualifying U.S. small business on Small Business Saturday.
What is the impact of shopping small during the holidays?
There are 33.2 million small businesses in the U.S. and they make up 99% of all businesses. For the past 20 years, small businesses have accounted for roughly 40% of the United States’ gross domestic output (GDP), which equates to trillions of dollars of economic activity.
Help Small Businesses with Hurricane Recovery
American Express will donate $1 to the Small Business Hurricane Recovery Grant Program for every purchase made on an AmEx card during Small Business Saturday.
By designating a day in their honor, we are reminded that these businesses rely on our patronage during critical consumer shopping seasons as well as year-round. This year, support for small businesses is especially important as consumers are expected to spend $191 less at small businesses this holiday season, a 40% downturn from last year, as rising costs and continued inflationary pressures are causing a pull back on spending.
This could cause a strain on small businesses who rely on holiday sales to drive profit, as 61% say holiday revenue is a key factor to the success of their business, according to data from Quickbooks.
However, while total consumer spend is expected to be down, one positive outlook for small businesses this season is that consumers remain loyal to supporting and shopping small. Nearly half of consumers (47%) said a key reason they choose to shop at a small business over a larger retailer is their desire to contribute to their communities and support overall entrepreneurial success.
Holiday Advice for Small Business Owners
Maximize sales this holiday season with our guide to Small Business Saturday. Plus, read expert tips for tapping into other major shopping days, like Cyber Monday, Giving Tuesday, and Black Friday.
How does shopping at small businesses help my local economy?
When you support a local business, you’re also supporting your town, city, and neighborhood by way of paying sales tax. The sales tax money is used to support public schools, parks, roads, and sidewalks, as well as fund public service workers, like firefighters.
“It may be hard to see sometimes, but your local dollar comes back to you in a variety of ways,” says Victoria Kidd, owner of Hideaway Café in Winchester, Virginia.
Small businesses are deeply engaged in their communities, so, supporting a small business supports your local community. According to the MetLife and U.S. Chamber Small Business Index, nearly all small businesses owners agree that community engagement is important for their business—and are actively engaged in giving back in several ways—including hosting or sponsoring community events, donating to local charities, and forming partnerships with other local businesses.
Are there other benefits of shopping small?
Yes! The items found in small businesses are often made by hand in small batches, resulting in one-of-a-kind pieces. Local stores may also be able to offer customized products, hands-on service, and other personal touches that big box stores cannot. In fact, 52% of consumers say they purchase from small businesses to find unique gifts or offerings that can't be found at big retailers.
Additionally, consumers looking to avoid the stressors of holiday shopping are favoring small businesses. According to QuickBooks, 1 in 3 consumers say a desire to avoid crowded or busy big retail stores during the holiday shopping rush motivates them to shop small.
How can I support my local small businesses?
Shop Small! Regardless of where you live in this country, you can be certain that your local community benefits greatly from the restaurants, retail stores, manufacturers, and service providers that create jobs and drive economic growth in your area.
Support the small businesses in your area and shop local – especially during Small Business Saturday on November 30th. Be sure to share your shop small experiences on social media using #ShopSmall and thank the businesses you visit for their contributions to our neighborhoods.
Small Business Advocacy and Programs
The U.S. Chamber works every day to fight for policies and regulations that benefit small business and to support their growth and success with tailored resources and expert insights.
What if I want to shop online?
With the growth of the digital economy, more and more entrepreneurs are starting or moving their businesses online. This year, the majority of consumers plan to shop equally online and in-person for the holidays (compared with only 26% who say they plan to shop primarily in-person and 23% who say they plan to shop primarily online).
“During the pandemic, it was so critical to have a different channel to generate business as people weren't able to access traditional brick and mortar stores,” said Hrag Kalebjian of Henry’s House of Coffee.
While many small businesses offer online shopping functions, only 3 in 10 say they’re able to offer free shipping. Many (69%) consumers cite the promise of free or discounted shipping as why they might prefer to shop online compared to in-store. For small businesses, free shipping is out of reach for many small business owners struggling to keep costs competitive.
Social media is becoming a popular platform for small businesses to market and sell their products. Over half of small business owners (52%) say they plan to use social media platforms to sell products or services this holiday season—more than any other platform, including their own website. Facebook, Instagram, and TikTok are top social platforms of choice for both small businesses and their customers.
The U.S. Chamber of Commerce is proud to stand for millions of small businesses in communities across America. As you shop for gifts this season, don’t forget about the numerous small businesses that support your local economy and employ your friends and neighbors.
About the authors
Lindsay Cates
Lindsay is a senior manager on the communications and strategy team. She previously worked as a writer and editor at U.S. News and World Report.
