Small Business Saturday, founded by American Express in 2010 and cosponsored by the U.S. Small Business Administration since 2011, is an important day for small businesses. It takes place on November 25th this year and has become a crucial part of their busiest shopping season. According to the 2022 Consumer Insights Survey commissioned by American Express, U.S. consumers spent an estimated $17.9 billion shopping and dining at small businesses last year.
Shopping at small businesses has numerous benefits for the local economy. An average of $68 out of every $100 spent locally stays in the community, compared to only $43 when spent at a big-box store, as found by Civic Economics – Andersonville Study of Retail Economics. Small businesses make up over 98% of Michigan businesses and employ half of Michigan workers, according to the U.S. Small Business Administration.
Gov. Gretchen Whitmer signed a proclamation highlighting the importance of buying locally to support entrepreneurs, encourage small business growth, and back job growth in Michigan. The Michigan Retailers Association states that if consumers in the state redirected just 10% of their estimated $30.3 billion in out-of-state commerce and remote sales, it would increase Michigan employment by more than 16,000 jobs and boost incomes by nearly $660 million.
The National Retail Federation predicts record spending during the holiday season from November 1 through December 31, with forecast retail sales expected to increase between 3% and 4% over 2022, equating to between $957.3 billion and $966.6 billion. Small Business Saturday is seen as an important part of small businesses’ busiest shopping season and an interconnectedness with the local economy.
In summary, Small Business Saturday is a crucial day for small businesses that have a significant impact on the local economy