With the holiday shopping season now in full swing, there’s plenty of competition for consumer dollars. For businesses both large and small, this season has a major impact on the bottom line. But consumer spending impacts more than the business itself: According to the Small Business Economic Impact Study from American Express, two-thirds of every dollar spent at small businesses in the United States stays within the local community.
Furthermore, every dollar spent at small businesses creates an additional 50 cents in local business activity as a result of employee spending and businesses purchasing local goods and services. In fact, for every 10 jobs at a small business, another seven are supported in the local community.
A separate study, the 2018 Small Business Saturday Consumer Insights Survey, finds that the vast majority of Americans are completely on board in their support of small businesses. The survey found that 91 percent of consumers believe it is more important than ever to support small businesses this holiday season, and 83 percent plan to do at least some portion of their holiday shopping at a small, independently owned retailer or restaurant – either in person or online.
“What began nine years ago as an effort to support local stores during the holiday shopping season has become the Shop Small movement, bringing together millions of shoppers, small businesses of all kinds, civic leaders and organizations in thousands of towns and cities across the country,” said Elizabeth Rutledge, chief marketing officer at American Express. “Shopping small has a significant and positive effect on local communities. When we spend local, small businesses thrive. And when small businesses thrive, we all thrive.”