Monday, August 12, 2019

4 Reasons To Support Small Companies On Small Business Saturday® And Beyond - Forbes

4 Reasons To Support Small Companies On Small Business Saturday® And Beyond - Forbes


4 Reasons To Support Small Companies On Small Business Saturday® And Beyond - Forbes

Posted: 31 Oct 2018 12:00 AM PDT

Small Business Saturday® 2018 takes place on November 24. Photo Credit: Getty Royalty Free.

Whether you're a small business owner, a consumer, or the CEO of a big corporation, you likely know that small companies are a pretty big part of the economy. This year, show your support for small enterprises by participating in Small Business Saturday® (SBS).

My accounting and payroll software company, Patriot Software, is an advocate of Small Business Saturday. And personally, I am a major supporter of small businesses. I know how much time, dedication, money, and hard work entrepreneurs pour into their small companies.

On Small Business Saturday and beyond, get out and connect with your local businesses. If you're a consumer, kick off your holiday shopping at your local small business. If you're a small business owner, support and partner with other companies in your area.

What Is Small Business Saturday?

Small Business Saturday is a national shopping day that takes place the Saturday after Thanksgiving. What separates this shopping day apart from Black Friday and Cyber Monday is that SBS revolves around small businesses.

Still relatively new, Small Business Saturday was started in 2010 by American Express. In 2011, the U.S. Senate officially recognized Small Business Saturday.

This year, Small Business Saturday 2018 takes place on November 24. Small businesses nationwide promote and participate in the day by staying open and offering incentives to customers. But, small businesses aren't the only entities that can engage in Small Business Saturday.

Consumers can participate in Small Business Saturday by shopping. In addition to customers and small businesses, larger businesses and neighborhoods can get involved.

Businesses with approximately 150 employees or more can apply to be corporate supporters. Corporate supporters promote Small Business Saturday to their employees, customers, and social media followers. For more than five years, Patriot Software has been a corporate supporter of Small Business Saturday.

Organizations, businesses, and individuals can apply to be neighborhood champions for Small Business Saturday. Neighborhood champions rally businesses and consumers to participate. Champions must encourage at least 10 local businesses in their communities to participate, organize at least one community event, and distribute Shop Small® merchandise.

As you can see, there are many ways to get involved with and support Small Business Saturday. But, why should you? What have small businesses ever done for you? Read on to learn why you should support SBS.

4 Reasons To Support Small Business Saturday

Small Business Saturday is more than a fun day to shop solo, with family, or with friends. When you support small businesses on Small Business Saturday and beyond, you support:

1. The Economy

There are 30.2 million small businesses in the United States, accounting for 99.9% of U.S. businesses. Could you imagine if 99.9% of all businesses didn't exist? Our consumer choices would be severely limited.

Small businesses promote competition and help prevent monopolies. By encouraging competition, small companies move the economy along.

Consumer spending on Small Business Saturday put a substantial amount of money back into the economy in 2017. Nationwide, consumers spent about $12 million on Small Business Saturday alone.

If you're a consumer shopping on SBS or a small business participating in SBS, you can directly support the economy. And if you support small businesses by encouraging others to shop, you can indirectly impact the economy.

2. Your Community

Small Business Saturday is a community-centric day. It's a day where communities can rally around their local small companies and host community events.

Consumers who spend on SBS support their local communities. Plus, small businesses are crucial to communities. Small enterprises add diversity, can become tourist attractions, and put money back into their local economies.

Small businesses that participate in SBS support their communities, too. Many small companies use Small Business Saturday as a chance to donate a percentage of their revenues to their communities.

3. The Workforce

The unemployment rate is at 3.7%. And, 47.5% of U.S. employees (59.9 million) are employed at a small business. Small businesses consistently produce new jobs, fueling economic growth and contributing to a low unemployment rate. When you support small businesses, you also support the individuals working there.

Support the employees and owners behind the brands this SBS. Small Business Saturday has the potential to turn strangers into lifelong customers, encouraging the success of the enterprise, and ultimately the employment of its staff.

4. Authenticity

Small businesses are famous for offering original items, personalized service, and face-to-face conversations with the owners themselves.

I'm not saying the items or customer service provided by chains and big corporations are fake—but there's something about learning the history of an item and meeting the owner that gives small businesses that unique edge.

Small Business Saturday gives consumers the opportunity to check out new businesses, learn where the products come from, and get to know the people behind them. And, it allows small businesses to tell their authentic stories, warts and all.

Is Small Business Saturday Good for Small Businesses? - HowStuffWorks

Posted: 23 Nov 2018 12:00 AM PST

The Great Recession of 2008-2009 was the worst downturn in the U.S. economy since the Great Depression of the 1930s, causing unemployment to spike to nearly 10 percent and slashing more than 4 percent from the gross domestic product. Consumer spending tanked and small businesses suffered, as 60 percent of job cuts in the U.S. occurred at companies that could least afford it — those with 50 or fewer employees. About 200,000 small businesses called it quits during that period. In 2010, American Express (AmEx) saw the bloodbath as a chance to launch an initiative called Small Business Saturday.

Hot on the heels of Black Friday, Small Business Saturday is meant to emphasize spending not at big box stores, but instead at local shops and vendors who rely on an influx of revenue around the holidays. Since the movement began, AmEx estimates that small business supporters have spent about $85 billion during Small Business Saturday. The U.S. Senate even got in on the act, passing a resolution in support of the concept in 2011 and annually since.

There are about 29 million small businesses in America, accounting for the vast majority of U.S. companies. And despite the impact of the burst housing bubble, these enterprises still accounted for more than 61 percent of all new jobs between 1993 and 2016.

So how does Small Business Saturday work out for small businesses? A data service company looked at credit card transactions at small businesses in Texas throughout 2017 and found that Black Friday was actually better for business than Small Business Saturday, perhaps because consumers' itchy credit card fingers are already in overdrive. Still, data transactions were up 41 percent on that day versus a typical day for small businesses.

In 2017, 108 million shoppers spent $12.9 billion on Small Business Saturday, according to the National Federation of Independent Business. This was a big drop from the $15.4 billion spent in 2016. However, awareness of the holiday has grown among American shoppers. Some 70 percent in 2017 said they were aware of it, up from 55 percent in 2015. The most popular small businesses frequented on Small Business Saturday were restaurants and pubs, followed distantly by clothing stores (41 percent versus 24 percent).

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