Small Business Saturday is a day dedicated to supporting the independent businesses that makes the Schaumburg community unique, vibrant, and provides invaluable contributions to our local economy. Small businesses across the U.S. generate about 4.8 trillion dollars- a figure roughly equivalent to the GDP of Japan, the world’s third largest economy.
Created by American Express in 2010, Small Business Saturday serves as the ceremonial kickoff to the holiday shopping season for small and local businesses across the United States. In 2018, U.S. shoppers reported spending an estimated $17.8 billion at independent retailers and restaurants on the day, according to the 2018 Small Business Saturday Consumer Insights Survey. In addition, the Small Business Economic Impact Study from American Express found that an average two-thirds of every dollar spent at small businesses in the U.S. stays in the local community, meaning a consumer’s local impact during the holiday shopping season can be significant. According to a study commissioned by American Express, the company that started the idea, for every dollar spent at a small business in the U.S. about 67 cents stays in the local community. And small business generate an additional 50 cents on the dollar at other local businesses due to employee spending and the businesses purchasing other local goods and services.
While the U.S. Small Business Administration defines small business as a business (corporation, limited liability company or proprietorship) with 500 employees or less. The Small Business Saturday created by American Express defines and reports on small business with less than 100 employees. Amex-commissioned 2018 Small Business Economic Impact Study, amex.co/another-reason-shop-small.
According to the U.S. Small Business Administration (SBA), small businesses represent 99.9 percent of all U.S. businesses. Small businesses created 1.9 million jobs in 2015 with some of the smallest firms - those with 20 employees or less - adding over half of the positions with a 1.1 million increase. As of 2018, the SBA estimates there are 30.2 million small businesses employing a total of 58.9 million workers.
Small businesses do not always stay small. Large corporations, such Motorola started off as a small business and grew to become a major player in the national and international marketplace. Microsoft and Amazon are prime examples of how a small business idea can change the world. Small businesses that grow into large businesses often remain in the community in which the business was first established. Having a large corporation headquartered in a community can further help provide employment and stimulate the local economy, creating a market that favors the development of additional small businesses.
Small Business Saturday celebrates the diversity of small businesses across the U.S. and recognizes the importance of supporting small businesses, the jobs they help create, and the culture they foster in local communities. These should be celebrated Saturday and every day throughout the year to encourage a vibrant and innovative economy.