It Has Never Been More Important to Shop Small on Nov. 28 and Throughout The Year

The coronavirus pandemic has hit small businesses particularly hard. There are an estimated 30 million small businesses in the U.S., and they account for the lion’s share of jobs created in the economy. Small businesses are defined as companies with fewer than 500 employees. But 98% of them have 100 employees or less.

Typically, small businesses do not have months’ worth of cash on-hand, and unlike large corporations, do not have access to the capital markets. During the pandemic, millions of them have struggled, particularly in the restaurant and hospitality industries.

While the government provided a lifeline in the form of the CARES Act’s Paycheck Protection Program (PPP), for a variety of reasons, many companies continue to barely stay above water. In order to have these businesses in existence once the pandemic ebbs, we need to support them, particularly on Saturday, Nov. 28, which marks the 11th anniversary of Small Business Saturday?, which the SBA has co-sponsored for the past decade.

“Small businesses from Montauk and Manhattan need our support now, more than ever. New Yorkers can think big by shopping small and do their part to help the backbone of the American economy navigate, retool, and pivot from the effects of COVID-19,” says SBA New York District Director Beth Goldberg. “The holidays might look a little different for 2020, but we can still share joy and a sense of community by shopping small and supporting our favorite small businesses, and their employees, all holiday season long.”

Small Business Saturday is a great opportunity for consumers to really make an impact on our economy and in our neighborhoods. Small businesses have an immeasurable effect on the quality of life in our neighborhoods and support the local ecosystem.

In my Fintech Fridays episode this week, I remarked on the importance of active support for small businesses that the financial services sector and policymakers can spearhead. There are many steps that we in the industry must take to give small businesses a fighting chance of survival in the year ahead. Although initiatives like Small Business Saturday are important, they alone cannot bring back America's small businesses to their pre-pandemic heights.

District Director Goldberg says that 110 million consumers shopped small last year and spent a total of $20 billion in local shops and restaurants across the country. It will be hard to replicate that success with dining and travel restrictions in place. Meanwhile, online retailers continue to show strength. Some of the savvier small businesses have enhanced their online sales capabilities to better compete in the COVID era.

Many family-owned businesses were already fighting for survival against big box stores and online retailers before the pandemic. COVID-19 restrictions, which encouraged people to stay home, created a boom for online shopping. Further, E-commerce and contactless shopping and curbside pick remain preferences of 73% of people surveyed by Deloitte in their annual holiday season economic forecast, issued for the 35th consecutive year. Additionally, the survey notes a majority of shoppers, 51%, feel anxious about shopping physically in a store.

Much attention has been focused on the plight of small businesses, and the “Shop Small” movement continues to be a valiant effort to help them. By shopping small and supporting your favorite small businesses — both in store with appropriate precautions and social distancing as well as online — you’re doing your part to overcome the economic hardships brought on by COVID, all holiday season long.

The SBA also has a dedicated web page www.sba.gov/saturday that offers small business owners tips on how to increase business during the holiday shopping season. Shopping small is a way for consumers to make an impact in their community by supporting independently owned businesses during the holiday season. Small businesses help to spur economic growth in communities across our country and add vibrance and strength to our nation. We must support them.