The History of Small Business Saturday

You might have seen the ads every year, right around Thanksgiving, for Small Business Saturday. Participation in the now-annual tradition continues to grow year after year. In fact, American Express reports that consumers have spent an estimated total of more than $200 billion at small businesses on Small Business Saturday since 2012.

But maybe you find yourself wondering: What is Small Business Saturday, and when did it originate? Or maybe you own a small business and want to get in on the party. We’ve got you covered. Learn what Small Business Saturday is, why it was started and how it helps your community.

What Is Small Business Saturday?

Small Business Saturday is an annual holiday that encourages holiday shoppers to shop at local businesses. Small Business Saturday takes place on the Saturday following Thanksgiving, which is also the day after Black Friday, one of the biggest shopping days of the year in the U.S.

How Was Small Business Saturday Started?

Small Business Saturday started as a campaign launched by American Express on November 27, 2010, to help small businesses gain exposure and inspire consumers to shop within their own communities during the holiday season. The day became official in 2011 when Washington state mayors, governors, senators and President Obama shared their support for Small Business Saturday. 

In 2012, American Express amplified the campaign by helping small business owners promote their businesses. The credit card company offered small business owners free personalized ads to spread across the Internet and attract new customers. That year, an estimated $5.5 billion was spent at small businesses nationwide. By 2013, communities began celebrating the holiday by pledging support to their local businesses and organizations. 

In 2015, the number of people who shopped at small businesses on Small Business Saturday increased by 8% from 2014 to more than 95 million people. Spending reached $16.2 billion in 2015. Consumer spending has continued to grow as online shopping has become a more common way for small businesses to sell their products. In 2023, US consumers spent about $17 billion at small businesses on Small Business Saturday.

Today, most Americans know what Small Business Saturday is, and, of those who participate, nearly all recognize how important the holiday is to their communities.

Why Should You Shop Small?

For small business owners, their business is not just a business — it’s an extension of who they are. Supporting the local businesses within your community not only keeps those businesses alive, but also keeps the communities they serve thriving as well.   This year, shop at your local bakery, restaurant, coffee shop, boutique or neighborhood store rather than shopping at a national chain. Shopping local matters because it affects the entire community. When more money is spent at local stores, more money stays within the community. For every dollar spent at a small business, 68 cents stays within your local economy. Furthermore, every dollar spent at a local business creates 48 cents in local business activity.

In addition to helping schools and other organizations through taxes, small businesses are also often the organizations that support local sports teams, charities and events. Plus, local retailers are more likely to hire locally than retail chains.

And the impact can be immense. In 2022, the Small Business Economic Impact Study showed staggering numbers. If every Gen Z and Millennial shopper — that is, shoppers born after 1980 — spent $10 at a small business on Small Business Saturday, it would generate a whopping $2 billion of local economic activity. 

I Own a Small Business. How Can I Get Involved?

The US Small Business Administration maintains a website helping small business owners connect with initiatives in their local community as well as nationwide, including Small Business Saturday marketing materials and partner organizations. Check out their resources to see what will work for you.

Support for Your Small Business

There are many challenges as a small business owner, but small business insurance should not be one of them. At Farm Bureau Financial Services we understand how hard you have worked to build your small business, which is why we want to help you protect it. Learn how our small business insurance and commercial insurance can help ensure the success and safety of your company.