As consumers prepare for the upcoming holiday season, small businesses nationwide await Small Business Saturday. Over the last decade, the event has grown in popularity — a way for local companies and consumers alike to reconnect with their communities.

Here is an overview of consumers' perceptions of Small Business Saturday and the profound impacts it could have on your business.

What Is Small Business Saturday?

Small Business Saturday falls on the Saturday after Thanksgiving each year — a complement to Black Friday and Cyber Monday (News - Alert). It is a day for consumers to support small businesses, celebrate everything they do locally and discover unique goods and services.

The shopping event has become even more prevalent in recent years since the COVID-19 pandemic. As consumers hunkered down at home and unemployment reached all-time highs in 2020, small businesses struggled to stay afloat. Some business owners did their best selling products online, while others had to find revenue amid the new normal or close their doors.

Stay-at-home mandates might be a thing of the past. Still, local businesses face rising inflation and exorbitant rents, making it difficult to profit and keep operations running. On November 25, 2023, many small businesses will take advantage of the busiest shopping weekend of the year to draw in customers and earn a profit.

Consumer Attitudes Toward Small Businesses

Consumers view small businesses favorably. According to a 2022 International Council of Shopping Centers survey, 94% of adults spend money on goods and services from small businesses. While 67% supported local restaurants and coffee shops, another 50% and 33% regularly shopped at local supermarkets and apparel stores, respectively.

There are several reasons why consumers present positive attitudes toward local establishments. For one thing, it fosters a personal connection to their community. In a sense, they are giving back to the local economy. There has also been an increasing demand for unique products and personalized goods.

Many small businesses have adopted sustainability and ethical practices in their inventory, packaging and business models. Generation Z and Millennials, especially, have taken a keen interest in purchasing greener products from companies aligned with their views, such as rising awareness of human behaviors on climate change. 

Other times, small businesses are quick to take a stance on particular social justice and cultural issues — a practice younger consumer demographics have grown to appreciate. Some even partner with local organizations and nonprofits, donating a portion of sales to their cause. All these scenarios impress consumers and can influence their purchasing decisions.

Marketing Strategies for Small Business Saturday

Small business owners interested in participating in Small Business Saturday must market themselves properly to gain consumers' attention.

Promoting your business on social media using a unique hashtag like #SmallBusinessSaturday is an effective way to position yourself in front of a broad audience. Remember to specify where you are to attract local customers. For instance, you should include a location before uploading an Instagram post — such as your business address or the city and state.

Advertising your business in local newspapers, community newsletters and online community forums are other ways to get noticed.

Seeing how Small Business Saturday falls between two other major shopping holidays, you'll want to stand out with excellent deals and discounts on products and services. Just be sure whatever deals you offer are OK for your bottom line. After all, businesses currently face steep costs.

Other tips to prepare for Small Business Saturday include:

• Restocking your most popular items well in advance.
• Remembering current customers by inviting them through personalized email marketing.
• Donating part of the day's sales to a local nonprofit.
• Partnering with another local business, such as offering complementary discounts for both shops.
• Selling products online for customers who prefer e-commerce to brick-and-mortar shops.
• Extending your hours to give customers more time to shop.
• Creating posters and signs for your shop window or parking lot to advertise the event.

Of course, no matter what day of the week or year it is, a superior shopping experience is the key to attracting and retaining customers. It is best to hone in on your customer service strategy — adopting greater optimism, attentiveness and compassion — before the event. According to one survey, 95% of consumers stay loyal to a brand when they feel appreciated.

The Importance of Small Business Saturday

The holidays are always a critical time for any small business. As the pandemic recovery continues, this year's Small Business Saturday is more important than ever. This annual event is an opportunity to boost sales, especially if business is slower throughout the year.

Consumers have made it clear they are eager to make a difference wherever they can. They know small businesses' struggles and prefer to shop locally rather than at big-name retailers.

Small businesses are essential to their communities, helping lower taxes and providing employment where opportunities may be slim. Much of these businesses' dollars stay local, too — going back into area businesses, schools or charities.

Often, Small Business Saturday makes consumers want to bring or share these businesses with people they know, drawing more attention to a shop or service.

Challenges and Limitations

If surveys indicate shopping motivations, consumers demonstrate enthusiasm and support for Small Business Saturday. However, it also presents some challenges for participating businesses.

Indeed, small businesses will see significantly more foot traffic on the busiest shopping weekend, but it could pose problems amid limited selections. They also continue to compete with much larger brands.

Nonprofit organization Small Business Majority surveyed 500 small business owners in 2022. The results showed that 83% of small businesses shared dismay at corporations' abilities to steal innovators' ideas and mass produce them for the public. A similar 84% support more robust policies and incentives to protect small businesses from predatory corporate practices.

Another fear is that consumers will see Small Business Saturday as a marketing ploy for heightened attention and price increases on commodities.

Make the Most of Small Business Saturday

Small business owners participating in Small Business Saturday usually reap the rewards. You can achieve excellent sales and customer retention in one day with the right marketing strategy. Even better, your business will strengthen its ties to the community long-term.