The many reasons to support Small Business Saturday

Small business is big business across much of North America. According to a 2024 report from Innovation, Science and Economic Development Canada, nearly 98 percent of all businesses in Canada are small businesses, which the Government of Canada defines as firms with one to 99 paid employees. Small businesses boast an equally notable presence in the United States, where the Small Business Administration reports such establishments account for 99 percent of the nation’s firms.

With such a profound presence in both Canada and the United States, it’s no wonder small businesses are championed at a point in time when shopping takes center stage. Small Business Saturday occurs each year on the Saturday after American Thanksgiving, making it part of a weekend that is often characterized as the start of the holiday shopping season. With small businesses set to take their well-earned turn in the spotlight, consumers can ponder the many reasons to support Small Business Saturday this year.

• Small businesses are significant employers. The term “small business” can be misleading, particularly in terms of job creation. While small businesses are generally described as firms with fewer than 500 employees, recent data from the SBA indicated small companies accounted for two-thirds of employment growth across the U.S. over the last quarter century, ultimately generating around 13 million jobs during that time period. Small businesses also are big-time employers in Canada, where the ISEDC notes such firms employed 46.5 percent of the nation’s total private labor force in 2023. Those jobs are filled by consumers’ family members, friends and neighbors, and supporting these employers ensures those individuals can keep earning.
• Small businesses help to fund vital local services. Another notable reason to support small businesses is their role in creating strong local tax bases. The revenue generated by successful, local small businesses strengthens communities because it translates into tax income for local towns, which benefits schools, community organizations and public safety.
• Small business spending is more likely to stay in the local community. Another way supporting small businesses benefits communities relates to where consumers’ dollars go once they’re spent. Data from the American Independent Business Alliance indicates 48 percent of each purchase at a local independent business was recirculated locally. By comparison, just 14 percent of purchases at chain stores was recirculated locally. That means more than three times as much money is staying in communities when consumers buy from locally owned businesses compared to chain retailers.

There’s no shortage of reasons to support Small Business Saturday. This year, consumers can do their part and give local small businesses, and the communities they call home, their unwavering support by shopping local on Small Business Saturday.