Why is Small Business Saturday growing in popularity over Black Friday?
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Black Friday marks the start of the holiday retail season. According to information from the National Retail Federation, up to 130.7 million Americans intended to buy on Black Friday this year. However, Small Business Saturday is tucked away between Cyber Monday and Black Friday, giving customers a chance to cross things off their shopping list and show support for their neighborhood businesses.
Small Business Saturday was first introduced by American Express in 2010 and aims to encourage customers to visit one of the 33 million independent stores that are located in the United States. A resolution formally commemorating Small Business Saturday was enacted by the Senate in 2011.
The 2022 Small Business Saturday Consumer Insights Survey estimates that American consumers spent an estimated $17.9 billion with small businesses on the final Saturday of November in 2022.
Who shops on Small Business Saturday instead of Black Friday?
In contrast to 56% of respondents who said they were more likely to purchase on Black Friday, 61% of holiday shoppers said they would prefer to shop on Small Business Saturday.
Even though a lot of people will buy at multiple occasions this weekend (Black Friday, Small Business Saturday, and Cyber Monday), the survey's findings indicate that customers are becoming more and more interested in supporting small companies.
Younger folks find Small Business Saturday to be an especially tempting draw. According to a survey by Bankrate, almost 75% of millennials said they would be out shopping on Saturday. The breakdown of customer demographics for the holiday is as follows:
Millennials stated that they intend to participate in Small Business Saturday in 72% of cases.
69% of Millennials
59 percent of Gen Xers
51 percent of baby boomers
Benefits and drawbacks of Small Company Saturday
Because many small businesses lack storage, Holly Wade, executive director of research at the National Federation of Independent Business, told USA TODAY that small firms, unlike major retailers, haven't acquired exceptionally high inventory levels. Wade stated that while it makes sense from a commercial perspective, customers might not discover significant savings at tiny establishments, which could be detrimental.
Customers generally have lower expectations for steep discounts because they are aware that small businesses find it more challenging to match the deals offered by larger stores.
A more customized and individualized buying experience can be offered by small businesses. 96% of holiday buyers, according to Bankrate, believe small businesses offer superior experiences than large enterprises in at least one of the following categories:
- The shop’s unique gift ideas (56%)
- Customer service experience (54%)
- Fostering a sense of community (44%)
In the US, small enterprises are growing.
A record 5.4 million new business applications were submitted in the United States in 2021. The Small Business Administration reports that since 1995, small firms have created 62.7% of net new jobs.
According to data from the Federal Reserve's Survey of Consumer Finances, the percentage of families who own a business rose by 9% between 2019 and 2022, with notable gains among households headed by Black and Hispanic individuals. The proportion of Black households with a company more than doubled during this same time span.
