Small Business Saturday

Small Business Saturday was first conceived and launched by American Express in 2010, amid the aftermath of the Great Recession, when small businesses were struggling to recover. The company aimed to create a dedicated day that would drive foot traffic and awareness to local merchants during the crucial holiday shopping season. The inaugural event was a modest grassroots campaign, with American Express promoting the day through social media and providing free marketing materials to small businesses.

The Foundational Catalyst

The primary catalyst was the recognition that small businesses are the backbone of the American economy, accounting for nearly half of private-sector employment. However, they often lack the marketing muscle of big-box retailers and e-commerce giants. By placing Small Business Saturday on the Saturday after Thanksgiving—immediately following Black Friday—the day strategically captured shoppers already in a buying mood, directing them to local establishments.

The Legislative/Official Adoption

Within a few years, the day gained significant traction. In 2011, the U.S. Senate unanimously passed a resolution supporting Small Business Saturday, and the following year, governors from all 50 states participated. In 2013, American Express reported that an estimated $5.5 billion was spent at small businesses on that Saturday. By 2018, spending had exceeded $17 billion. The day also inspired similar initiatives globally, such as "Small Business Saturday" in the United Kingdom, launched in 2013 by American Express in partnership with the UK government.

Modern Global Legacy

Today, Small Business Saturday is a hallmark event in the retail calendar. It has evolved beyond a single day into a broader "Shop Small" movement, with communities organizing month-long celebrations, local gift card giveaways, and special promotions. In 2021, American Express reported that 70% of consumers were aware of the day, and spending had reached an estimated $23.3 billion. The movement has also adapted to the digital age, encouraging shoppers to support small businesses online through targeted hashtags and local business directories.

Celebrating Small Business Saturday is about intentionally choosing to support local entrepreneurs over large chains. Here is a definitive guide to making the most of the day:

For Individuals

• Plan your route: Identify local shops, boutiques, and restaurants in your neighborhood and map out a walking or driving route to visit multiple businesses.
• Shop early and often: Many small businesses offer exclusive discounts, freebies, or loyalty rewards on Small Business Saturday. Arrive early to get the best deals.
• Share your finds: Post about your purchases on social media using #ShopSmall and tag the businesses. Word-of-mouth is a powerful tool.
• Buy gift cards: If you cannot decide on a product, purchase a gift card to support the business immediately and drive future traffic.
• Dine local: Eat breakfast, lunch, or dinner at a locally-owned restaurant rather than a chain.

For Small Business Owners

1. Register with American Express: Enroll your business in the official Shop Small program to receive free marketing materials, including window clings, signage, and social media graphics.
2. Create a special offer: Offer a limited-time discount, a free gift with purchase, or a bundle deal to attract shoppers.
3. Host an event: Consider a live demonstration, a tasting, or a meet-and-greet with a local artisan to draw crowds.
4. Partner with neighboring businesses: Collaborate on a sidewalk sale or a joint promotion to create a festival-like atmosphere.

For Communities and Organizations

• Organize a shop local campaign: Local chambers of commerce can coordinate a "Shop Small" map or passport program where shoppers collect stamps from each participating business and win prizes.
• Promote public transit: Encourage car-free shopping by offering free public transportation or bike valet services in busy shopping districts.
• Highlight small businesses in media: Local newspapers and TV stations can run profiles of standout small businesses leading up to the day.

Global Variations

In the United Kingdom, Small Business Saturday often extends to a weekend or week of local shopping events, with a dedicated highlight on street markets and pop-up shops. In Canada, the day is often combined with "Shop Local" initiatives tied to the Christmas market season. In Australia, small business advocates promote the Saturday after the US Thanksgiving (though it's not a holiday there) as a day to focus on local retailers before Christmas.

Small Business Saturday generates significant economic ripple effects. According to a 2023 survey by American Express and the National Federation of Independent Business, an estimated 67% of shoppers who participated in Small Business Saturday reported that the experience made them more likely to shop small throughout the year.

Local Job Creation

Small businesses are the largest employer in the United States, providing jobs for nearly half of the private workforce. When consumers spend $100 at a local business, approximately $68 stays in the community through taxes, payroll, and other local spending (Civic Economics).

Tax Base Strengthening

Retail sales tax revenue generated on Small Business Saturday helps fund local public services such as schools, infrastructure, and emergency services. A thriving small business district can increase property values and reduce vacancy rates.

Supply Chain Resilience

Supporting small businesses fosters diverse supply chains that are less susceptible to disruptions than those dominated by large corporations. Many small businesses source goods locally, further strengthening regional economies.

Small Business Saturday presents a unique marketing window. Business owners can adopt actionable strategies to maximize visibility and sales:

Pre-Event Buzz

• Email marketing: Send a series of reminders to your customer list about your Small Business Saturday deals. Include a teaser image of your most popular product.
• Social media countdown: Post daily countdowns on Instagram and Facebook using #SmallBusinessSaturday and local geotags.
• Press release: Send a press release to local media outlets highlighting your participation and any special events.

Day-Of Tactics

• Live video: Stream a brief behind-the-scenes look at your shop setup or a product demonstration on Facebook Live or Instagram Live.
• In-store signage: Use bright, clear signs to direct shoppers to specials and highlight the Shop Small message.
• Collaborate with influencers: Invite local micro-influencers to visit your store and share their experience in real time.

Post-Event Follow-Up

• Thank-you emails: Send a thank-you note to customers who made purchases, perhaps with a discount code for a future visit.
• Social media thanks: Post photos of customers and express gratitude, tagging them if possible.
• Survey feedback: Ask customers what they loved and what could be improved for next year.

In the digital age, Small Business Saturday has expanded beyond brick-and-mortar stores. Online platforms and tools help small businesses compete with larger e-commerce players.

E-Commerce Integration

Many small businesses now offer online ordering or gift cards that can be purchased and used on Small Business Saturday. Platforms like Shopify, Square Online, and Etsy make it easy to set up a digital storefront in hours.

Social Media Amplification

Hashtags like #ShopSmall, #SmallBizSat, and #SmallBusinessSaturday trend nationally on Twitter and Instagram. Businesses can leverage these tags to reach customers outside their immediate geographic area.

Local SEO Optimization

Updating Google Business Profile with special Small Business Saturday hours, offer details, and photos can dramatically increase foot traffic. Encouraging customers to leave reviews on Google and Yelp boosts visibility.

Payment Technology

Contactless payment options like Apple Pay, Google Pay, and mobile card readers (e.g., Square Reader) enable faster transactions and safer shopping experiences, which are especially attractive during the pandemic era.

Despite its success, Small Business Saturday faces ongoing challenges. The rise of e-commerce giants like Amazon, changing consumer habits, and supply chain issues can dilute the impact of the day.

Competition from Black Friday and Cyber Monday

Small Business Saturday is sandwiched between two massive shopping days. Some retailers extend their Black Friday deals through Saturday, making it difficult for small businesses to compete on price.

Consumer Awareness

While awareness is high, actually converting intention into action remains a hurdle. Many shoppers still default to large online retailers out of convenience.

Future Innovations

To stay relevant, the movement is evolving: American Express is expanding the Shop Small program year-round, offering ongoing support through digital advertising credits and small business grants. Communities are experimenting with "Small Business Weeks" and joint marketing collectives. With continued consumer education and local government support, Small Business Saturday can remain a vital driver of local economic health.