When November arrives, small businesses across the United States start preparing for Small Business Saturday. This annual celebration, held on the Saturday after Thanksgiving, encourages shoppers to support local entrepreneurs by choosing independent retailers over larger corporate chains.
In this Huddle Business Capital blog article, we delve into the history of Small Business Saturday, highlighting its significance and the positive impact it has on local economies. We also provide insights on how your business can actively participate in this celebrated event, allowing you to engage with your community and enhance your visibility, and unwrap holiday success.
What is Small Business Saturday?
American Express founded the first Small Business Saturday in 2010.1 It was a tremendous success, well-received by business owners and shoppers alike. The Small Business Administration (SBA) became an official cosponsor os Small Business Saturday in 2011.2 Also in 2011, members of the U.S. Senate came together to pass a resolution championing Small Business Saturday.3
By the following year, 2012, Small Business Saturday gained traction as officials from all 50 states embraced the event and actively celebrated small businesses. This tradition of support has continued each year ever since.4
$17 billion in one-day sales.
Small Business Saturday stands out as one of the most bustling shopping days of the year; it marks the start of the holiday shopping season, along with Black Friday. Each year, eager business owners eagerly anticipate a remarkable surge in foot traffic and sales. At the same time, enthusiastic shoppers delight in uncovering a treasure trove of unique local products and services.
In 2023, spending at small businesses on Small Business Saturday topped $17 billion. Since its inception in 2010, total spending at small businesses on Small Business Saturday is $201 billion.5
Shop Small®.
You've probably come across a "Shop Small" sign proudly displayed in the window of a local business in your neighborhood. These signs symbolize a commitment to supporting small businesses, and you might even have one showcased at your own establishment. Shop Small® is a registered trademark of American Express, designed to promote and support small businesses and the communities in which they reside.
To qualify for Shop Small® eligibility, a business must meet specific criteria that highlight its commitment to the local community. The basic requirements include: the business must be located in the U.S., in good standing, and have up to $5 million in full-year American Express charge volume. Specific industries are excluded from Shop Small®, and a list of those industries is available on the American Express website.6
How your business can participate.
Your small business doesn't need to be Shop Small® certified to participate in Small Business Saturday. In addition, no official registration is required. Whether you're a cozy coffee shop, a unique retail boutique, a family-owned restaurant, or a specialized service provider, there are many ways to make your mark on this special day.
First, reach out to your local chamber of commerce to learn how you can get involved. They can provide valuable insights on community initiatives and ways you can actively participate in local events and support fellow businesses. Second, take time to develop marketing messages and promotional strategies specifically for Small Business Saturday. Consider offering discounts or sales on specific products or services, and encourage shoppers to buy locally and support small businesses.
Stock up on holiday inventory.
Make sure to stock up on holiday inventory in preparation for Small Business Saturday. This includes checking current stock levels, identifying popular items from previous years, and sourcing additional products that are likely to attract holiday shoppers. Planning ahead will help maximize sales opportunities and ensure that you can meet the demand.
If you need extra capital to purchase holiday inventory, a short-term working capital loan is an excellent option. This option can provide the necessary resources to enhance your inventory without straining your cash flow, enabling you to prepare for Small Business Saturday—and the entire holiday season.
Sources.
1, 2, 5 - https://www.sba.gov/about-sba/organization/observances/small-business-saturday
3, 4 - https://www.uschamber.com/small-business/everything-you-need-to-know-about-small-business-saturday
6 - https://www.americanexpress.com/en-us/benefits/shop-small/
Disclaimer.
This Huddle Business Capital blog article is purely educational and contains general information and opinions; it is not intended to provide advice or recommendations of any kind.
