If small businesses were a country, they would represent the 3rd largest economy in the world. According to a report released by American Express, the company that helped to start Small Business Saturday movement back in 2010, small businesses account for $4.8 trillion in GDP. That’s about the equivalent of the GDP for Japan.
Small Business Saturday happens on the Saturday after Thanksgiving, the day after Black Friday. Small business Saturday shines a light on the small businesses around the country that support the local community. The study shows that for every ten jobs at a small business, another seven are supported in the local community.
Craft Spirits Makers are a Great Example of Small Business Success
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For the report, Small Business is counted as any company with less than 100 employees. For craft spirits, that company size puts practically all of makers in the small business category. According to the American Craft Spirits Association’s 2018 Craft Spirits Data Project the average craft spirits distillery employs 9.2 full-time people.
Employment in the U.S. Craft Industry Has Been on the Rise
- The average number of full-time employees (FTEs) has been increasing by almost 50% between 2014 and 2016.
- Approximately 66% of craft spirit distillery employment is created at the production facility and the tasting room operations.
- Approximately 33% of the employment in craft spirits is generated in the field.
- Total craft spirits employment crossed the 12,000 mark in 2016.
Two Thirds of Every Dollar Spent at a Small Business Stays Local
The Small Business Economic Impact Study shows two-thirds of every dollar ($0.67) spent at small businesses in the U.S. stays in the local community, consumers’ local impact during the important holiday shopping season could be significant. Further, 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.
“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, and we hope Small Business Saturday will help to amplify that effect during the crucial holiday shopping season. When we spend local, small businesses thrive. And when small businesses thrive, we all thrive.”
Now in its ninth year, 97% of consumers who plan to Shop Small on the day said Small Business Saturday has had a positive impact on their community. The survey found that nine in ten (91%) consumers believe it is more important than ever to support small businesses this holiday season, and 83% plan to do at least some portion of their holiday shopping at a small, independently owned retailer or restaurant – either in person or online. On par with previous years’ celebrations, nearly six in ten (58%) U.S. consumers reported being aware of Small Business Saturday, and among those, 80% plan to go out and Shop Small at independently-owned retailers or restaurants on the day.
Additional results of the survey:
- A majority of consumers (94%) value the contributions small businesses make in their community;
- As consumer shopping habits shift further online, nearly two-thirds (65%) are likely to seek out small, independently-owned retailers when shopping online, including 59% who plan to Shop Small online this Small Business Saturday; even 40% of consumers say they will shop with a small retailer online this Cyber Monday;
- Among consumers who plan to shop on Small Business Saturday Nearly all (96%) said Small Business Saturday inspires them to go to small, independently-owned retailers or restaurants that they have not been to before, or would not have otherwise tried;
- Plans to shop include visiting independently-owned bakeries (40%); clothing, accessory and shoe stores (40%); restaurants, bars and pubs (37%); bookstores (32%); and gift, novelty and souvenir stores (30%).
“When shoppers spend locally at small businesses, communities win,” said NFIB CEO and President Juanita D. Duggan. “We encourage consumers to celebrate Small Business Saturday by shopping at small and independent shops and restaurants.”
Every year, small businesses, local Chambers of Commerce, business associations and other community organizers join together as Neighborhood Champions to bring their neighbors out to shop on the day. In 2018, more than 7,500 Neighborhood Champions have committed to plan activities and events to get shoppers in the doors of small businesses on Small Business Saturday.