Shop Small: Everything You Need to Know About Small Business Saturday

Small Business Saturday is an annual event that takes place on the Saturday following Thanksgiving (this year, November 29, 2025). First observed in 2010, Small Business Saturday has become an important day to show appreciation for small businesses.

Small Business Saturday encourages Americans across the country to support local small businesses. The day infuses money back into our local economies, promotes vibrant and innovative communities, and celebrates the important role of small businesses in the national economy.

Here's what you need to know about Small Business Saturday and how to support your local businesses year-round.

How did Small Business Saturday start?

In 2010, in an effort to support local small businesses – many of whom were hurting during the economic recession – American Express launched Small Business Saturday to help drive more holiday shopping to small businesses. One year after the launch, local officials across the nation began to notice and promote the day. In 2011, the Senate unanimously passed a resolution in support of Small Business Saturday and by 2012 officials in all 50 states began to participate – and they have every year since.

The day has grown into an annual holiday shopping tradition. 

What is the impact of shopping small during the holidays?

There are 33.2 million small businesses in the U.S. and they make up 99% of all businesses. For the past 20 years, small businesses have accounted for roughly 40% of the United States’ gross domestic output (GDP), which equates to trillions of dollars of economic activity.

By designating a day in their honor, we are reminded that these businesses rely on our patronage during critical consumer shopping seasons as well as year-round.

What is the small business holiday outlook this year?

This year, support for small businesses is especially important as tariffs, uncertainty, and underwhelming revenue growth are front and center on the minds of small business owners heading into the holiday season.

According to data soon to be released in the Q4 MetLife and U.S. Chamber of Commerce Small Business Index, 79% of small businesses say this upcoming holiday season is important for their overall profit this year, up from 70% last year.

Luckily, overall consumer spending is projected to increase by 25% year-over-year, reaching an estimated $263 billion, up from $211 billion in 2024, according to the QuickBooks Holiday Shopping Report.

During the busy holiday season over half (56%) of small businesses say they are planning to offer seasonal discounts and 48% say they will extend regular business hours (up from 39% last year), according to the Small Business Index.

QuickBooks says on average, shoppers plan to do 41% of their holiday shopping at small businesses (up from 36% last year). Younger consumers are leading the charge: 52% of Gen Z say they plan to spend more at small businesses this year, compared to 31% of Gen Xers and just 19% of Boomers.

How does shopping at small businesses help my local economy?

When you support a local business, you’re also supporting your town, city, and neighborhood by way of paying sales tax. The sales tax money is used to support public schools, parks, roads, and sidewalks, as well as fund public service workers, like firefighters. 

“By shopping small this holiday season you are directly supporting the community within where that business is located. Your support allows the business to give more hours to its staff which in turn allows them to spend more in their own community, it also allows ownership to invest more in the community and in result is a big win-win for all,” says Brooks Kirchheimer, co-founder of Hill Top Hospitality in Park City, Utah.  

Small businesses are deeply engaged in their communities, so, supporting a small business supports your local community. According to the Chamber’s Small Business Index, nearly all small businesses owners agree that community engagement is important for their business—and are actively engaged in giving back in several ways—including hosting or sponsoring community events, donating to local charities, and forming partnerships with other local businesses.  

Are there other benefits of shopping small?

Yes! The items found in small businesses are often made by hand in small batches, resulting in one-of-a-kind pieces. Local stores may also be able to offer customized products, hands-on service, and other personal touches that big box stores cannot. Consumers say they purchase from small businesses to find unique gifts or offerings that can't be found at big retailers.

Additionally, consumers looking to avoid the stressors of holiday shopping are favoring small businesses. According to QuickBooks’ 2024 report, 1 in 3 consumers say a desire to avoid crowded or busy big retail stores during the holiday shopping rush motivates them to shop small.

How can I support my local small businesses?

Shop Small—in-store or online! Regardless of where you live, you can be certain that your local community benefits greatly from the restaurants, retail stores, manufacturers, and service providers that create jobs and drive economic growth in your area. 

With the growth of the digital economy, more and more entrepreneurs are starting or moving their businesses online. This year, small businesses expect 40% of their online holiday sales to come from mobile devices. 

Support the small businesses in your area and shop local – especially during Small Business Saturday on November 29th. Be sure to share your shop small experiences on social media using #ShopSmall and thank the businesses you visit for their contributions to our neighborhoods.

The U.S. Chamber of Commerce is proud to stand for millions of small businesses in communities across America. As you shop for gifts this season, don’t forget about the numerous small businesses that support your local economy and employ your friends and neighbors.

About the author

Lindsay Burton

Lindsay (Cates) Burton is a director on the communications team. She leads strategic communications for member marketing partnerships and small business advocacy programs. She previously worked as a writer and editor at U.S. News and World Report.

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