Small Business Saturday Highlights Local Partnerships Already Growing

While shopping is a key emphasis of this weekend — given the arrival of the famed Black Friday — local businesses are hoping the focus will continue to the nationally recognized Small Business Saturday, an event in its second year and spearheaded by American Express.

Sara Grover, executive director for the Port Washington Main Street Program, said Port Washington has a unique business district because of its variety. She said she hopes Small Business Saturday helps draw attention to that.

"People research the market before they open a business here," Grover said. "Even though the economy is brutal right now, when you come here there’s a cluster of good things to do. The one thing we need to do is tell our story better."

Port businesses say they appreciate the attention to a concept they've already applied, working to strengthen local businesses through partnerships.

At in Port Washington, Steve San Filippo has joined other local businesses to build a "Shop Port, Think Local" movement, in which local businesses sell their products at Sentry and participate in promotional events together at the store.

"The businesses that are demo-ing have seen a crazy amount of business," he said. "We're getting the products in front of the customers faces, and it works."

The store's had more than 500 visitors, San Filippo said.

San Filippo said each store has its own arrangement, but some sell their products to Sentry at wholesale price with Sentry selling them at the same retail price as in the stores downtown. San Filippo said the store sees about 10,000 customers every week.

"We want to let people know that there’s good quality products and you can support local business owners right here in Port Washington," San Filippo said. "You gotta support your local economy or the big businesses will come in and knock out the small guys."

Downtown Port Washington businesses included in the Shop Port, Think Local movement include: , , , , , , and . Organizers of the movement are also working to recruit more local business involvement.

Working off the principle of supporting local, 192 small businesses in southeastern Wisconsin are members of Local First Milwaukee, a coalition that promotes shopping local for the economic, environmental and social effects on a community.

“We’re not saying it’s wrong to buy things at a chain store; it just means so much more when you buy it locally,” Local First Milwaukee President Pam Mehnert said. “That money stays in Milwaukee and creates jobs here.”

On Saturday, organizers hope millions of Americans will shop at local small businesses to earn rewards such as $25 statement credits for American Express card members who spend $25 or more at a qualifying small business. More than 2 million people "like" the event's Facebook page.

According to a report conducted by American Express OPEN Independent Retail Index, locally owned businesses declined from 59 percent in 1990 to 48 percent in 2009 nationally.

However, local business owners are optimistic about the future of small business.

In a survey of the Local First Milwaukee members, Mehnert said 55 percent reported that their businesses were growing — meaning sales are up and they are hiring new employees.

The member businesses have monthly gatherings in which they exchange ideas, and many use each other’s products and services in their stores. 

“Local businesses tend to do business with other local businesses,” Mehnert, who is also the general manager of Outpost Natural Foods, said. “At Outpost, our accountants are local, our attorneys are local, we’re buying packaging supplies local. We work together.”

In Port Washington, this kind of cooperation goes beyond Sentry's movement. For example, Jim Wirsching-Neuser, owner of , said his wines are sold at and in addition to Sentry.

"After people leave here they always say they're going to another shop in downtown, maybe or ," Wirsching-Neuser said. "A lot of people like to keep their money local."

Mehnert said she thinks one reason people like to support local businesses is because of their responsiveness to individual needs.

“When a supply chain is controlled by larger corporations, they’re actually determining what products are available to customers,” Mehnert said. “It’s this whole complex system of control. But a local bookstore is going to sell titles that aren’t just in the top 100; they’re going to take special requests and provide different services for individuals.” 

Randall Hoth, president of the Better Business Bureau, said the bureau also supports small locally-controlled businesses because the owners often work directly with consumers and have a deep investment in the community. Hoth said 90 percent of Wisconsin businesses who are accredited with the Better Business Bureau and pledge to uphold its code of ethics are small business owners with 25 or fewer employees. Eighty percent have ten or fewer employees.  

“I think it’s a huge thing for the consumer to know that you’re doing business face-to-face with an owner that cares about your business,” Hoth said. “They’re the ones pledging to do the right thing for their customers.”

Hoth said he hopes consumer appreciation for small businesses extends beyond Small Business Saturday.

“It’s not just for one Saturday that we’re supporting this,” he said. “We think small businesses are important to the economic future of this country. It’s a really viable and important economic engine for growth.”