In 2021, an estimated 180 million Americans went shopping during the Thanksgiving holiday weekend—including on Small Business Saturday. That holiday alone generated an estimated $23.3 billion in consumer spending last year.
Ahead of the holiday season, one survey found 84% of consumers intend to “shop small” between Thanksgiving and Christmas.
Small businesses need a lifeline this holiday season as they’ve struggled to compete with large companies.
A new Small Business Holiday Report from Kabbage by American Express found 60% of small businesses are investing in cash flow tools in anticipation of the holiday shopping season. Nearly a quarter of respondents—24%—will use upcoming holiday sales to determine their business viability beyond 2023.
The Kabbage report adds mom and pop stores are adapting short-term strategies to overcome worker shortages, supply-chain disruptions, and rising inflation. Given these concerns, nearly half of the survey’s respondents—46%—expect 20-30% of earnings to be generated from social media channels.
The 13th annual Small Business Saturday is scheduled for this Saturday, November 26th. The shopping holiday was established by American Express in 2010. It is typically observed between Black Friday and Cyber Monday.
The event has garnered popularity through its catchy “shop small” slogan and by appealing to shoppers turned off by gaudy Black Friday advertising.
Small business owners, however, do worry about the consequences born out of the recently-passed “Inflation Reduction Act.” The National Federation of Independent Businesses (NFIB) explains:
While the Inflation Reduction Act of 2022 doesn’t include a direct tax on small businesses, it includes components that are concerning for owners, specifically the new IRS enforcement that could negatively impact law-abiding small business owners. Additional compliance burdens and responding to enforcement measures are an indirect tax on small business owners, requiring time and resources that many businesses don’t have.
Although the COVID pandemic and government directives decimated small businesses, they still remain the backbone of the U.S. economy.
According to the Small Business Administration’s 2022 Small Business Profile, there are over 33 million small businesses that employ nearly 62 million employees—or 46.4% of U.S. employees.
This holiday season, budget your expenses carefully and find ways to support local businesses.