Small Business Saturday, which falls the day after Black Friday, is an annual event encouraging consumers to support locally owned retailers.
The exact impact by locally owned businesses varies by location and industry, but several studies show, for every $100 spent at a major retailer or chain about $14 is recirculated in the local economy, compared to $40-$50 when spent at independent merchants and restaurants.
“When you are spending money with a publicly traded international company, that money gets depleted from your local community. It goes to shareholders that could be living anywhere in the world,” said Thomas Barr, vice president of business development for Local First Arizona.
Small Business Saturday, launched by American Express in 2010 and co-sponsored by the U.S. Small Business Administration since 2011, is meant to encourage consumers to support local, independent businesses.
Barr said shopping locally can expose people to new experiences, create community pride, and generate diverse options.
“Twenty years ago, if you were to look at the city of Phoenix in general, we would have had two national chain restaurants for every local restaurant. Twenty years later, after all of the work being done to promote locally owned restaurants, we now have two local restaurants for every one chain,” he said.
According to the American Express 2023 Consumer Insights Survey, U.S. consumers who shopped at independent retailers and restaurants on Small Business Saturday, spent an estimated $17 billion.
