12 Fun Financial Facts About Small Business Saturday
Small Business Saturday might not have the same cachet as Black Friday, and it certainly doesn’t have the same history. But this relatively young holiday has become an important annual focal point for local businesses.
And it drives some real numbers.
For the uninitiated: Small Business Saturday actually is a creation of American Express. The credit card company first established the shopping holiday, set for the Saturday after Thanksgiving, in 2010, as the U.S. was clawing its way out of the Great Recession.
The idea? “Encourage people to Shop Small and bring more holiday shopping to small businesses.”
With another Small Business Saturday on the horizon (Nov. 26), here’s a look at the holiday’s importance and some of its defining numbers.
12 Fun Financial Facts About Small Business Saturday
- Since its founding in 2010, American consumers have spent roughly $163 billion on Small Business Saturday, according to surveys by American Express.
- That $163 billion included a little more than $23 billion in 2021, up 18% from 2020.
- That $23 billion was generated by some 51 million shoppers.
- 58% of small business shoppers made an online purchase on Small Business Saturday 2021, up from 56% the year before.
- A study commissioned by AmEx and PayPal, and conducted by Retail Dive, says that only 10% of shoppers say their holiday budgets would be “a lot less” this year than in 2021.
- American Express estimates that 68 cents of every dollar spent at a small business in the U.S. stays in the local community.
- AmEx also says every dollar spent at small businesses creates an additional 48 cents in local business activity as a result of employees and local businesses purchasing local goods and services.
- A study by AmEx says that if every Gen Z and Millennial shopper spent $10 at a small business on Small Business Saturday, it would support $2 billion in local economic activity throughout the U.S.
- It also says that 63% of small business owners said they want to grow their Gen Z and Millennial customer base this holiday season.
- More than half (53%) of surveyed consumers say they plan to shop small on Small Business Saturday.
- 50% of small businesses say that Small Business Saturday is more critical than ever for their business this holiday shopping season.
- American Express has a stated goal of driving $100 billion in small business spending between 2021 and 2025.
Sources: American Express, National Retail Federation, RetailDive
Small Business Saturday is an important boom time for many local businesses, and it can end up making or breaking a company’s year.
If that’s the case for your business, proper yearlong financial planning for this holiday is prudent. McManamon & Co. provides outsourced CFO and accounting services that can help you with budgeting, financial planning, forecasting, cash flow management and more.
Reach out to us at 440.892.8900 or contact us online today.
Tags: McManamon & Co., small business | Posted in McManamon & Co., small business