Small Business Saturday: Shoppers urged to support local economy in run-up to Christmas

Shoppers are being asked to support Small Business Saturday in the annual initiative to support local firms in the run-up to Christmas.

The concept started in the US but took off in the UK in 2013 with the idea that people could focus on a specific day to revitalize their community by shopping local and having some of their customs go to smaller companies.

Data from American Express, the main backer of the effort, shows Britons continue to support their local firms, with nearly 10 million people spending £634 million in-store and online on Small Business Saturday last year.

It’s not just one-off shops and eateries that benefit from the event; small online retailers and local service providers are also seeing an increase.

The Small Business Saturday organization of the same name predicts that a fifth of Britain’s pre-Christmas spending could go to small firms this year; This is an increase of 19 per cent on last year and equates to around £5.3bn being spent on small businesses.

Michelle Ovens CBE, director of Small Business Saturday UK, said: “It is encouraging to see positive economic signs ahead of this year’s crucial festive season. This greater melting pot of seasonal spending presents an incredible opportunity to boost the UK’s great businesses.”

“Despite the ongoing challenges, small businesses have enjoyed a period of relative stability this year. Public support could make a big difference to helping them finally turn a corner at the end of the year – especially after Black Friday and Cyber ​​Monday, where smaller firms can really struggle to keep up with deep discounting events.

“It is vital that our nation gets behind our favorite small businesses to strengthen the economy next year and deliver immeasurable value to society and our local communities.”

Ms Owens’s organization said support for small businesses remains strong, with four in five (84 per cent) thinking it is important to support small businesses and almost all (95 per cent) believing they add value to local economies.

“It’s positive to see that spending with small businesses remains strong among the public, especially with the festive season fast approaching,” said Dan Edelman, general manager of UK business services at American Express, adding that the campaign was “vital to encourage the nation to shop small, whatever their budget.”

Hiromi Matsunobu of Matchado in London predicts this weekend will be one of the busiest trading periods.

Data from Small Business Saturday shows a surge in firms emerging this year, returning to the 5.6 million level last seen in 2020 before the pandemic saw scores of companies close in the years that followed.

Jordan Shwide, managing director of Monzo Business, added that those hoping to get their first pre-Christmas sales thrill can also benefit from this initiative. “More than 800,000 small businesses were set up in the UK this year, which means many of the shops people discover this Small Business Saturday may be brand new,” he said.

“We’re seeing this growth first-hand at Monzo, with one in five start-up businesses applying for a Monzo Business account. So whether you’re looking for a local treat or the perfect holiday gift, choosing to shop small this weekend means playing a part in the growth journey of the next generation of businesses in the UK.”

Small and medium-sized businesses (SMEs) account for approximately 99.8 per cent of total private companies in the UK, with approximately 99.2 per cent of these being classed as small with fewer than 50 employees. SMEs also account for 60 per cent of employment in the UK, highlighting their importance to local and overall UK economies.

“Overall, we believe businesses should face 2026 with confidence and at Small Business Britain, we are here to ensure that is the case,” Ms Ovens added. “The UK’s 5.6 million small businesses play an integral role in driving the British economy forward and creating jobs.”