A Lackluster Year End for Small Businesses

 

Graphic showing small businesses and text urging to Shop Small and shop local.

In our July 2017 newsletter, we spoke about the Current eCommerce Trends in Consumer Buying and the toll it is taking brick-and-mortar retailers.

As we close out 2017, it appears, based on November’s Small Business Saturday numbers, that small businesses are being hit even harder.

Now in its eighth year, Small Business Saturday was developed by American Express in association with the National Federation of Independent Businesses (NFIB) in an effort to provide the public with an opportunity to discover and celebrate the variety of small business that make communities thrive. Celebrated the first Saturday after Thanksgiving (this year on November 25), the goal is to help small businesses cash in on the holiday shopping boost.

However, after three years of continued growth, this year’s numbers took a significant dip where 108 million shoppers (down from 112 million shoppers in 2016), spent $12.9 billion (down from the more than $15 billion spent in 2016).

While the data shows that 70 percent of U.S. consumers were aware of Small Business Saturday, only 58 percent said they shopped or dined at more than one independently owned business during that weekend.

A state-by-state breakout shows the most popular small businesses visited on the day were restaurants, bars, and pubs (41 percent), followed by clothing and accessories stores (24 percent), food stores (23 percent) and coffee shops (22 percent).

Based on data from the Office of Advocacy’s Small Business Profiles, a “Small Business” is defined as a firm employing fewer than 500 employees. In Nevada, there are 246,569 small businesses, which make up 99.10 percent of all the businesses and employ 41.30 percent of all employees in the state.

Highlights from the 2017 Small Business Saturday Consumer Insights Survey shows:

    • As much as 80 percent of all consumers surveyed say at least some of their holiday shopping will be done at small, independently-owned retailers or restaurants;
    • Three-quarters (75 percent) of all consumers surveyed are planning on going to one or more small businesses as part of their holiday shopping;
    • Of all consumers surveyed 90 percent agree it is important for them to support small, independently-owned restaurants and bars;
    • Of consumers who are aware of Small Business Saturday, 89 percent agree that the day encourages them to Shop Small all year long, not just during the holiday season;
    • For those who are aware and who plan to shop on Small Business Saturday, 44 percent plan to spend more this year compared to last year.

Small business owners can find event inspiration and create customizable Small Business Saturday marketing materials to rally their communities at ShopSmall.com.

As a Nevada-based small business, Business Finance Corporation (BFC) strives to provide quality service with a personal touch to our friends and neighbors. There are dozens of large corporate firms that compete in the business of accounts receivable factoring, and while a few may look like they are Nevada based, they are actually cleverly disguised branch offices for out of state firms.

Call Business Finance Corporation for your personal consultation with a real person that understands Nevada’s businesses.

Your Partner in Success

David Cabral