Small Business Saturday In PA: How To Support The Local Economy

PENNSYLVANIA — Small Business Saturday, the day dedicating to sparking the local economy in the face of capitalism's most pervasive consumer holiday, takes on outsized importance in Pennsylvania.

Roughly one million small businesses call the Keystone State home, forming more than 99 percent of the state's business economy, according to the Pennsylvania Department of Community and Economic Development (DCED). Many are struggling to survive as inflation wreaks havoc on the economy.

"Keep your money local this holiday season and support a dream," the department shared on social media over the weekend. "Supporting local strengthens your communities."

Advocates say the day empowers buyers to directly support business owners and employees they personally know, while putting money into the economy in which they live and interact with in-person every day. Shopping local can also be a way of limiting the massive carbon outputs incurred by shipping giants like Amazon, which make enormous contributions to climate change.

Scores of small businesses around Pennsylvania are holding specials and deals in celebration of the event. Find participating stores near you in Pennsylvania online using this tool.

Pennsylvania officials say the state has unique characteristics that make it ideal for small businesses to thrive.

"There are a variety of factors, but it’s largely a combination of our welcoming communities, flourishing main streets, state support and assistance, robust higher-education programs — and, of course, a large dose of Pennsylvania pride," DCED said over the weekend.

Small Business Saturday comes between two of the year's biggest global capitalism megaholidays: Black Friday and Cyber Monday.

For many small businesses without the scale of established national chains to cruise through COVID-19 pandemic disruptions, fourth-quarter sales could make the difference between hanging on or shuttering their shops.

Last year, Small Business Saturday sales topped $23 billion. Since the first Small Business Saturday in 2010, consumers have spent an estimated $163 billion, according to American Express, the longtime sponsor of the event.

Two-thirds of every dollar spent at a local business remains in the community, according to most estimates. There’s a little more to the so-called “local multiplier effect,” according to the American Independent Business Alliance.

A study from that group found that, on average, 48 percent of every purchase at a local independent business is recirculated locally, compared to less than 14 percent of purchases at chain stores.

Small businesses are typically defined by the federal government as those with 500 to 1,500 employees, depending on the industry. They are responsible for two of every three jobs over the past 25 years, according to the Labor Department. Even a partial collapse of small businesses could weaken the overall U.S. economy.

Almost four out of five (79 percent) said small businesses are essential in their communities, according to a new survey of 1,000 adults conducted by Teneo on behalf of Kabbage by American Express.

The last couple of years have been tough as business owners bent their business models to navigate the pandemic, but many now question whether they’ll be able to continue.

Nearly one-fourth (24 percent) of businesses surveyed in the Kabbage by American Express survey said holiday sales volume will determine if they survive into 2023.

Another measure of merchants’ worries: National Federation of Independent Business members gave their lowest economic expectations ever in a June survey.

Small businesses are employing new strategies from inventory management to investment in marketing and payment transaction tools, but they’re also increasingly relying on credit, according to the Kabbage by American Express survey.

Some 21 percent of small business owners planned to take out a small business loan this holiday season. Almost a third (32 percent) planned to use the loan to cover costs to support their business, from inventory bills to common cash flow gaps.

Americans in general seem to understand how high the stakes are for independent businesses this year. More than half of 2022 holiday shoppers (53 percent) surveyed said they planned to shop or eat at an independently owned business or restaurant this year. That’s up from 42 percent of shoppers last year.