Hopes Riding on Small Business Saturday to Boost U.S. Firms
November 27, 2020 at 08:06 AM EST
As holiday shopping gets into gear this weekend, its uncertain how Small Business Saturday on Nov. 28 will move the needle and help the millions of business owners on Main Street struggling to survive. According to a Small Business Saturday Survey conducted by SurveyMonkey 43% of shoppers plan to spend less this holiday season than they did in 2019, and only 6% plan to spend the most money on Small Business Saturday. The national study conducted from Nov.,16-18 released on Friday, surveyed 3,122 individuals age 18 to over 65. The survey was conducted using SurveyMonkey’s online platform and based on its survey methodology. This could be foreboding news for small business owners who are counting on holiday sales to recoup sagging revenues. Many are teetering on bankruptcy due to the coronavirus pandemic that has toppled normal business operations. And more shutdowns may be coming soon as Covid-19 infections rise throughout the U.S. Roughly 75% small business owners have said that they need holiday spending to return to normal in order to stay in business in 2021, and 46% expressed the need for above average spending, according to the American Express Shop Small Impact study. The economic impact from this sales event is substantial. Small businesses benefit from increased sales during the busy holiday season, which in turn benefits the communities where they’re located. According to American Express, 67 cents of every dollar spent at a small business—whether it’s a retail store, restaurant or something else—stays in the community. An estimated 110 million people participated in Small Business Saturday last year, and sales hit a record high with an estimated $19.6 billion in reported spending, according to American Express, which helped to create Small Business Saturday in response to the Great Recession.