What Is Small Business Saturday and Why It Matters

Small Business Saturday has proven a worthy marketing opportunity for local business owners during the kick-off weekend to the holiday shopping season.

Created in 2010 by American Express, the initiative encourages holiday shoppers to support small businesses and independent retailers every year on the Saturday after Thanksgiving. This year, Small Business Saturday 2025 falls on November 29, giving entrepreneurs another chance to boost sales, attract loyal customers, and remind shoppers why buying local matters.

The Economic Impact of Small Businesses in the U.S. 

The estimated 36 million-plus small businesses in the U.S. play an essential role in local economies across the country, says the Small Business Administration. 

That’s especially true in rural areas, where small businesses impact employment even more than in their city counterparts, the SBA reports.

“While small businesses accounted for about 48 percent of employment in metropolitan areas,  they accounted for over 56 percent of employment outside of metropolitan areas,” according to research shared in September by the SBA’s Office of Advocacy. 

Nationally, small businesses employ nearly half of the workforce, and represent 43.5 percent of the country’s GDP, notes a post by the U.S. Chamber of Commerce.

2025 Holiday Shopping Outlook for Small Businesses 

A McKinsey & Company poll indicates consumers plan to spend roughly the same dollar amount this holiday season as they have in the past.

“I imagine we are going to see similar spending levels, and we’ll see the mix of categories and price points evolve quite significantly,” explains Emily Reasor, senior partner at the management consulting firm.

Similar to other retail forecasts this year, the McKinsey report said shoppers are approaching the holiday season with caution and practicality, and are adjusting their budgets and habits accordingly.

“We’ll also see a return to value, so promotions will be important,” said Reasor in a September episode of the company’s Consumer and Retail podcast.

Spending at small businesses held steady for a third consecutive month, according to data analyses from payment and financial services tech company Fiserv Inc.

“Consumer spending continues to boost the small business economy,” reports Fiserv’s Small Business Index for September. “Foot traffic is flat, but the average per customer spend at checkout ticked up a bit.”

The company uses and analyzes data from direct aggregation of consumer spending activity within the U.S. small business ecosystem to compile its monthly index.

Its September index showed year-over-year sales and transactions grew steadily at small businesses, both up 2.3 percent, and average ticket sizes increased modestly, compared to 2024. Month-over-month sales (+0.1%) and transactions (+0.3%) saw small increases, the report said.

“Pragmatism continued to guide consumer spending in September, with discretionary purchases slowing and the essentials seeing the most growth,” said Fiserv chief data officer Prasanna Dhore in a press release. 

How to Attract Customers on Small Business Saturday 

Come up with exclusive deals and unique offers to draw shoppers to your store on Small Business Saturday, whether that means a one-day sale or several promotions spread throughout the weekend, online and/or at a physical store.

Depending on your location and type of business, consider partnering with another business owner for a bigger Small Business Saturday promotion, or co-host a special event to attract more customers to the area and both businesses.

Like in every marketing strategy, social media is a crucial element for promoting Small Business Saturday. Post. Create content that shows off your products and/or services.

Don’t forget to use popular hashtags, such as #ShopLocal and #ShopSmall, to engage customers with your small business and its offerings on Small Business Saturday.

Prepare Your Small Business for a Successful Holiday Season

The holiday shopping season offers countless opportunities for growth, and Small Business Saturday is the perfect time to put creative marketing strategies into action. By offering exclusive promotions, collaborating with nearby retailers, and using social media to showcase your products and services, small business owners can drive both in-store and online traffic.

For holiday marketing tips, and ways to prep you small business for one of the busiest shopping weekends of the season, see How To Make This Year’s Small Business Saturday Best Ever or explore additional insights on social media marketing and customer engagement in Best Social Media Best Practices.

Visit The Wire for more ways to grow your small business all year long.