Shop Local: Small Businesses and the Holiday Season
Nestled between Black Friday and Cyber Monday is Small Business Saturday, a shopping holiday designed to spotlight locally owned small businesses. This November 30th marks the 15th anniversary of Small Business Saturday, started by American Express in 2010 to highlight the role of small businesses in our communities. The National Retail Federation expects holiday sales to increase 2.5 to 3.5 percent from last year, to as much as $989 billion. Supporting Main Street businesses on this day, and throughout the holiday season, not only offers the potential for a boost in sales but significantly contributes to the goodwill value of businesses and the communities they serve.
Economic Pressures and Holiday Opportunities
As we enter the 2024 holiday season, small business owners continue to navigate significant economic headwinds. BizBuySell's most recent Insight Report shows that nearly 79 percent of business owners report increased costs compared to last year, with only 4.6 percent seeing lower costs. The Insight Report reveals that businesses face higher costs of goods (29 percent) and increased overhead expenses (23 percent), while nearly 60 percent continue to feel the impact of inflation. With approximately half of business owners reporting ongoing challenges in the labor market, this holiday shopping season takes on even greater importance.
Supporting Local Businesses
With over 33 million small businesses in the U.S., there’s a growing recognition of the impact choosing to shop small and local can have. This support is especially meaningful now, as businesses work to maintain competitive pricing while absorbing rising costs in goods, labor, and overhead. According to American Express, 72 percent of shoppers report feel inspired to shop small, independently owned retailers and restaurants throughout the year after supporting Small Business Saturday. While online shopping continues to grow, in-store shopping remains the preferred channel for consumers, and Main Street businesses benefit from the personalized service, unique offerings, and connections that are a hallmark of small businesses - not just during the holiday season, but year-round.
Building Goodwill Value
An often-overlooked aspect of shopping locally is its impact on the goodwill value of small business. In today's challenging economic environment, where BizBuySell’s data shows nearly 80 percent of businesses face increased costs, goodwill becomes an even more valuable asset. This intangible value is built over time as businesses earn a positive reputation, foster customer loyalty, and gain community support - essential elements that help businesses weather economic uncertainties. As consumers increasingly seek authentic connections with the businesses they support, the goodwill generated through shopping small and local contributes to long-term loyalty and positive word-of-mouth marketing.
The Impact on Business Value
Small businesses can leverage the holiday season to boost both immediate revenue and long-term value. Last year's Small Business Saturday alone generated an estimated $17 billion in sales, demonstrating the event's significant economic impact. For business owners facing ongoing challenges in hiring and retaining employees at reasonable rates, this seasonal boost becomes even more critical.
Main Street businesses, influenced by broader economic conditions impact business valuations, rely on the holiday season not just for immediate sales but to build lasting value. It offers an opportunity to strengthen community bonds and build lasting business value. Supporting local and independently owned enterprises allows consumers to contribute to a sense of goodwill that continues long after the season is over. For business owners in retail and the restaurant industry, who often rely on the holiday period for a large portion of their annual revenue, the holiday season represents an opportunity to offset rising costs while strengthening community bonds and building long-term business value.