What is small business Saturday all about?

Between Black Friday and Cyber Monday, while many big-box stores are still slashing prices on everything from tech to skin care, there’s another shopping standout: Small Business Saturday, which highlights online and brick-and-mortar retailers nationwide.

The shopping highlight was founded in 2010 by American Express (which sometimes offers incentives for its cardmembers throughout it) and has been co-sponsored by the U.S. Small Business Administration since 2011, to address what small businesses cited as their most pressing need: getting more customers in the door, whether physically or virtually, said Walter Frye, vice president of global brand management at American Express management. That’s been an especially urgent issue in 2021, as many small businesses are recovering from the pandemic, during which some lost revenue or had to temporarily close.

Since Small Business Saturday was founded, Frye said “it’s become a movement and a staple in the retail calendar.” And despite many small businesses recovering from 2020 lockdowns, they’re facing a new challenge in 2021: global supply chain bottlenecks, which have caused shipping delays, low inventory and more. Small businesses are also grappling with labor shortages, and the price of raw materials is being driven up by inflation, said Shilpa Reddy, vice president of QuickBooks Commerce at Intuit, the financial software company. So, what does this mean for shoppers?

“Given the impact of all of these macro issues on small businesses, it’s important for consumers to have patience and empathy and understand small businesses don’t have the same resources as large corporations,” Reddy said.

Because many are thinking about shopping small during Small Business Saturday and the holiday season, we talked to retail experts about resources to help you find retailers to buy from, as well as other ways to support small businesses year-round. We also discussed how the holiday season affects small businesses across the country.

Many retail businesses rely on sales from the holiday season to carry them through the rest of the year, Frye said. In the recent American Express Shop Small Impact survey, 78 percent of the 523 U.S. small-business owners and managers who took part said holiday sales will help decide whether they can keep their doors open in 2022. But larger retailers often dominate the holiday shopping space by offering steep discounts, some of which begin as early as October.

“Small businesses can't always compete with the blockbuster deals that have become really popular on Black Friday,” Frye said. “That's why American Express started this tradition. Coming one day after Black Friday — one of the busiest holiday shopping days of the year — Small Business Saturday is really a day to shine a light on the importance of supporting small businesses and the impact consumers can have when they shop small all year round.”

Other ways to support small businesses year-round

Overall, “purchasing products, gift cards or subscription services from small businesses is the No. 1 way to support their business on Small Business Saturday and year-round,” Reddy said.

But you can also lift up small businesses in other ways. For example, Reddy suggested following them on social media, sharing their profile with your friends and followers and recommending them via word of mouth. She also said that leaving positive reviews makes a difference.

“Reviews help businesses get found more easily in online searches, boost business credibility and impact future customer purchasing decisions,” she said. "A small comment can go a long way.”