We’ve talked before about our love for small businesses here at Pineapple Payments. From their impact on local economies, to their crucial role in American society, small businesses are an integral part of both our economy and our way of life. As we kick off the official start of the holiday shopping season next week, consumers and merchants alike are gearing up for Black Friday and Cyber Monday deals. However, the newest of these kick-off days is arguably the most important. Small Business Saturday (SBS), which falls on the Saturday after Thanksgiving and Black Friday each year, celebrates our nation’s small businesses by encouraging consumers to “shop small” during the holiday season.

Origins

SBS was launched in 2010 by American Express. In the wake of the financial downturn during the recession, some 200,000 small businesses were forced to close their doors. The goal was to encourage consumers to make a conscious effort to support small and local businesses of all kinds. American Express initially offered cardholders a $25 statement credit for shopping at small businesses in an effort to boost support for independent retailers in a time that is typically dominated by large national chains.

In the seven years since, American Express has rolled back the incentives offered as the concept of SBS has grown. Today they provide materials for businesses and supporters and work to continue to encourage consumers to shop small through a variety of methods (including a Shop Small Map to help you find participating businesses near you).

Impact

As of 2016, there are a whopping 28 million small businesses in America. These businesses account for 54% of all U.S. sales. Since the creation of SBS, the focus on shopping small has grown into a year-round movement, particularly on social media. Across all social channels, #SmallBusinessSaturday and #SmallBizSaturday are no longer confined to the designated Saturday after Thanksgiving, but rather show up year-round as consumers increasingly make an effort to support their local merchants.

This shift has had a major impact. In 2016, American Express estimates that shoppers reported a total of $15.4 billion at small businesses. Some 6,700 businesses signed up to participate in 2016, which was a substantial increase from 2015’s 4,100. As of last year, 72% of American consumers were aware of the day and 112 million consumers shopped small.

Bottom Line: Shop Small!

Small Business Saturday falls on November 25 this year, which is right around the corner. While we’re firm believers in shopping small year-round, SBS is an especially good day to make an effort to support your local businesses. Without small businesses, our local economies would not be able to function, much less our national way of life.  So be sure to hit up your favorite local diner or go to a nearby boutique next weekend to show how much you value your small business pioneers.  That’s what we’ll be doing!