How Small Business Saturday helps shops stand out among large retailers

Sandwiched between Black Friday and Cyber Monday — historically the biggest and busiest retail days of the year — there’s another standout shopping event: Small Business Saturday. Started by American Express in 2010 and co-sponsored by the United States Small Business Administration (SBA) since 2011, Small Business Saturday aims to create awareness about the impact shoppers have when they buy “small” year round, whether they physically visit stores or shop online.

This year, 85% of consumers say they’re likely to shop “small” during the holiday season, according to the 2024 American Express Shop Small Impact Study. That’s an 11-point increase over the last decade, and represents a multibillion dollar opportunity — American Express reported that consumers spent $17 billion during Small Business Saturday in 2023.

We spoke with experts about resources you can use to support small businesses and what impact your purchases have. We also rounded up some NBC Select-staff favorite products from small businesses we love.

SKIP AHEAD What is a small business? | Our favorite small businesses | The state of small businesses in 2024 | How to support small businesses year round | Why trust NBC Select?

Small Business Saturday is the Saturday after Thanksgiving every year. It’s positioned between Black Friday and Cyber Monday, a period that’s dominated by steep discounts from large retailers. Small businesses can’t compete with the doorbuster deals large retailers offer around Thanksgiving, and the heavy advertising that comes with them — they’re not as visible to consumers. In fact, over half of small business owners (56%), say it’s even more difficult for them to remain competitive against larger companies during the holiday season compared to other times of year, according to American Express.  

Small Business Saturday, however, puts the spotlight on small businesses during the holiday season, which is one of the most important periods for sales because it corresponds with a surge in shopping activity, says Jessica Ling, senior vice president of global brand advertising at American Express. This is even more so the case during periods of economic instability, like the pandemic and the high rates of inflation.

Small businesses are the lifeblood of our communities, according to Ling, who says that they are the backbone of the economy and enrich neighborhoods and create jobs across the country. But there aren’t simple, cut-and-dry parameters to define a small business, although they’re usually evaluated based on two factors, experts told us: Monetary figures, like revenue and total sales, and size, meaning the number of employees that support a company. The SBA has size standards to help companies determine if their business qualifies as “small,” which may make them eligible to participate in certain government programs and compete for contracts set aside for them. These size requirements vary by industry and are generally based on the number of employees or the amount of annual receipts the business has, according to the SBA. 

To make identifying small businesses simpler, some large retailers and other organizations work off their own guidelines. For example, Amazon has a centralized small business storefront on its site and uses Gartner’s definition of small business, which includes businesses that employ fewer than 100 people and have less than $50 million in annual revenues. (Gartner is a research and consulting firm.) But if a small business wants to be included on American Express’ Shop Small Map, it must adhere to certain requirements, including being an American Express Card accepting merchant and not having more that $5 million in annual American Express charge volume.

For shoppers, however, defining a small business is often less about facts and figures and more about a feeling. Customers connect with small businesses on a personal level, get to know the faces behind the company and often feel like they’re investing in an entrepreneur’s dream. 

To recommend a variety of small businesses to shop from, we rounded up products from a few of our favorites around the country. This is by no means an exhaustive list — read more about ways to find small businesses to shop from below.

Aalyn Jordan Leather Bucket Bag

Started by two cousins, Aalyn is an accessories brand that sells leather bags, bag straps and gold plated jewelry. NBC Select managing editor Leah Ginsberg owns this Jordan Leather Bucket Bag and appreciates how well-made it is. “It is a good size for being out and about on a weekend or on a trip — though too small for work, in my opinion,” she says. The bag is made from coated leather and comes with a crossbody strap and a shoulder strap. 

Tchotchke Ripple Menorah

Whether you’re shopping for yourself or looking for Hanukkah gifts, Tchotchke makes an array of cool menorahs and judaica. NBC Select commerce editor Lindsay Schneider is a big fan of this small business and has  Ripple Menorah, which the brand sent her as a courtesy sample. “I love how modern and non-traditional this menorah is,” she says. “Standard Hanukkah candles fit into the circled layers perfectly and it’s pretty easy to clean, too. I ended up leaving the stoneware out all year round because I loved how it looked on my bookshelf — without candles it looks like a chic piece of pottery.”

Loeffler Randall Leonie Black Leather Ballet Flat

Loeffler Randall is a female-founded brand best known for their shoes, though they also have clothing and bags. Ginsberg says she’s obsessed with these ballet flats: “They’re so comfortable — it’s like not wearing any shoes at all,” she says. “And they come in close to a dozen different colors and materials.” 

Lizzie Fortunato Build Your Mood Hoops

“I love, love, love this brand,” says Schneider. “It was started by two sisters and a lot of it is handmade in New York City.” Lizzie Fortunato makes both costume and fine jewelry. “I love their earring charms, which I added onto a pair of hoops I already owned to jazz them up,” she says. The brand’s mood hoops come in enameled colors, as well as classic metals like gold- and rhodium-plated brass and the prices range from $90 to $125, while the charms start at $35.

Flamingo Estate Personalized Extra Virgin Olive Oil

Based in California, Flamingo Estate works with a network of farmers to grow produce that the brand then incorporates into aesthetically pleasing pantry staples, candles and bath and body must-haves. “The brand feels super high end and bespoke,” says NBC Select writer Bethany Heitman. “I plan on giving just about everyone on my list a bottle of this olive oil for the holidays — I love that it can be personalized for an extra special touch.” 

Backlot Flying Squirrel Coffee

Thank goodness Backlot Coffee ships nationwide because it’s what I miss most about living in Evanston, Illinois. I camped out in this shop for hours every weekend in college and sipped its Flying Squirrel blend until the sun went down. I can taste its chocolate, fig and toasted almond notes as I’m writing this (perhaps because I just brewed a fresh pot, as I do every morning).

On the surface, people have always recognized the importance of shopping small, says Joseph Black, the director of product management, accounting and commerce at Intuit QuickBooks. But after seeing small businesses struggle to stay afloat during the pandemic and watching many close permanently, he says shoppers have developed a deeper understanding of just how crucial it is to lift them up.

After years of hardships, small businesses are now working to adapt to ever-changing circumstances and adjust their business models to reach more customers long term. Their main areas of focus are e-commerce and social media, evidence that they’re investing in becoming omnichannel, meaning they are available to customers across shopping platforms and modalities, says Black. This trend partly started out of necessity — during the pandemic, many small businesses were forced to close their brick-and-mortars and start selling through their own e-commerce sites or others like Etsy, Shopify and Amazon. But now, tapping into the digital space is seen as a tremendous growth opportunity, says Black. It allows small businesses to meet their customers where they are — which is largely online — and show them that they’re willing to raise the bar on shopping experiences year after year.

Now, in the thick of the winter holidays, consumer sentiment toward small businesses is largely positive —85% of consumers say they’re likely to shop small this season, and 64% say that’s because they know a portion of their purchase directly impacts their community, according to American Express. But this high level of support for small businesses needs to extend through the whole year in order for them to continue growing, and Small Business Saturday is an annual reminder of that, says Black.

For one-third (34%) of consumers, shopping small inspired them to consider opening their own small business, according to the Amex 2024 Shop Small Impact Study. But in order for those small businesses to stay open, they need shoppers’ support. Purchasing their products, gift cards and subscription services is the best way to lift small businesses up, experts say. However, showing your support doesn’t stop there. Here are a few ways experts recommend cheering on small businesses year round.

Because so many customers rely on reviews when determining where to shop, sharing your positive experience goes a long way, says Black. Consider reviewing the product you bought and loved on Google, Yelp or the businesses’ website, or discussing the business’ exemplary customer service, flexible store hours or convenient payment options. All of these details mean a lot to small businesses and encourage customers to shop there.

Following your favorite small businesses is a great way to stay alerted to sales, new products, special promotions and more. Some small businesses also sell and advertise their products directly through platforms like Facebook, Instagram, TikTok and Pinterest. This gives you a convenient way to purchase items if you’re scrolling and see something that catches your eye. 

Black also encourages shoppers to interact with small businesses by liking and commenting on their posts, or forwarding them to friends and family members who you think might be interested. You can also post about a product you bought from a small business and tag their account, whether that’s in an Instagram Story, on a Facebook page or through a TikTok. When you do this, you’re sharing the small business with everyone who follows you, giving them exposure with just a few clicks, says Black. That business might repost your photo or video, showing their followers how someone uses their products in real life. 

In addition to shoppers making more of an effort to shop small, large retailers are too. Amazon, for example, now adds badges to product pages on its site if items are sold by small businesses. And retailers like Target and Walmart are beginning to carry more products from minority-owned brands, most of which are small businesses. Experts say that as consumers’ intent to shop small continues to strengthen, corporations are forced to respond.

If you’re looking to find small businesses to shop from directly online or in stores, you may be able to find guides and maps available through your city or town to point you in the right direction. Additionally, the American Express small-business map allows you to input your zip code so it can recommend local shops in your area and beyond. Google also has a “small business” filter on desktop and mobile, and one for Google Maps on mobile. When you tap the filter, you’ll only see products from merchants that identify as small businesses to help guide your shopping.

At Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. We also take steps to ensure all expert advice and recommendations are made independently and without undisclosed financial conflicts of interest.

• Jessica Ling is the senior vice president of global brand advertising at American Express, which started Small Business Saturday in 2010.
• Joe Black is the director of product management, accounting and commerce at Intuit QuickBooks. He has over 20 years of experience in ecommerce, working at companies including eBay and PayPal to build platforms that help connect consumers and small businesses.

I’m a reporter for NBC Select who has covered deals and sales since 2020. For this piece, I spoke to two experts about the impact of Small Business Saturday and referenced relevant studies from Quickbooks and American Express.