You’ve probably heard small businesses called “the backbone of the American economy.” But do you really know just how important small businesses are to the health of the economy? And did you know you can actually do something to help businesses in your area this holiday season, and score some free spending money at the same time?
Over the last decade, small businesses have generated 60 to 80 percent of net new jobs annually and represent 99.7 percent of all employer companies, according to the Small Business Administration (SBA). For every $100 spent in locally owned, independent stores, $68 returns to the economy through taxes, payroll and other expenditures, according to the small business advocacy group The 3/50 Project and based on research conducted by Civic Economics. Clearly, helping small businesses bounce back from the economic woes of the past few years can benefit entire communities, and ultimately, the country as well.
While Black Friday traditionally boosts the sales of big retailers, and Cyber Monday helps online merchants, small businesses haven’t had a day of their own – until now. This year, Nov. 27 is Small Business Saturday, and holiday shoppers will have a chance to support small business in their local communities.
Go to www.facebook.com/smallbusinesssaturday and pledge to use your American Express card at any locally owned, independent small business (such as a restaurant or shop) that accepts the card. American Express will give 100,000 Cardmembers who register their Card a $25 statement credit. You can use that credit toward defraying your holiday expenses – while helping small businesses in your area. What’s more, if you “Like” Small Business Saturday on Facebook, the credit card company will donate $1 (up to $500,000) to Girls Inc., a group which empowers young women to be the entrepreneurs of tomorrow.
Small business owners can also participate. American Express is offering $100 of free Facebook advertising to 10,000 business owners to help build online buzz and drive customers to shop at their businesses. Small businesses can sign up to participate in Small Business Saturday at www.facebook.com/smallbusinesssaturday.
You can also support small businesses in your community throughout the year. Whenever practical, purchase needed items from small, independent stores. You will often find competitive prices and superior customer service from small businesses. Not sure where to begin? Here are some tips:
* Use online directories to locate local companies that provide the product or service you need. Sure, you could go to the local home improvement giant to purchase the nails you need, but the mom-and-pop hardware store that’s operated in your town for 30 years is likely to have the same thing you need – not to mention a knowledgeable salesperson who can give you tips on how to best use the product.
* Rather than discarding worn shoes and purchasing new at a big retailer, consider having much-loved pairs repaired at a local shoe repair shop, which are almost always privately owned.
* Craving takeout? In most communities, it’s easy to find quality culinary offerings – from pizza to Chinese – from local businesses that are not part of a national franchise. What’s more, you may find more opportunity to personalize your order, and build a relationship with the restaurant staff.
Half of all private sector employees work for small businesses, according to the SBA. This holiday season, anyone concerned about the unemployment rate can help support the businesses responsible for employing the most Americans – simply by shopping local on Small Business Saturday.
