Small Business Saturday: 10 Years Strong
by Marc Weiss
Where did the time go? 2019 marks the 10th year of Small Business Saturday- a tradition started by American Express in the wake of the early 21st-century recession to help support local businesses around the country. With the rise of Amazon and big box stores nationwide, small businesses have taken a back seat in regard to media coverage and economic influence. However, the statistics tell a different story… small businesses not only impact the national economy far more than the widely covered big box chains, they also impact their local communities even more.
The Stats
Strength in Numbers
Small businesses make up more than 99% of all businesses in the U.S., and account for 47.5% of the country’s work force.
Franchised small businesses employ roughly 8 million people, and make up 40 % of all American retail jobs.
Strong Local Impact
Small businesses donate 250% more than larger businesses to non-profits and community causes (Source: Seattle Good Business Network).
For every $100 spent at a local business, roughly $68 stays in their local economy, whereas spending the same at a large business, only keeps $43 in the local economy. (Source: Civic Economics – Andersonville Study of Retail Economics)
For every square foot occupied by a local business, the local economic impact is $179. Contrast that with every square foot occupied by a chain firm, where the local economic impact is only $105. (Source: Civic Economics – Andersonville Study of Retail Economics)
The Future is Bright in Local Retail
The media attention surrounding the “retail apocalypse” has shaken up small business owners, but statistics have shown a rosier picture.
In a recent survey, clothing and shoes rank #2 and #3 (behind food and groceries) of things shoppers prefer to buy from local merchants.
Small businesses created 1.9 million net jobs in 2015. Firms employing fewer than 20 employees experienced the largest gains, adding 1.1 million net jobs. The smallest gains were in firms employing 100 to 499 employees, which added 387,874 net jobs. (Source: SUSB, Table 2)
Monthly sales statistics for brick and mortar (below) shows a steady average increase since 1992, despite the noticeable hit during the 2008 recession (Source: LandUseUSA, Figure 6).
Staying Competitive
Why share these statistics? Numbers don’t lie… in retail, it’s easy to get caught up in the negative media coverage and make rash business decisions based on emotion or “gut feeling”. At Management One, we use hard data directly from retail stores to help drive successful businesses forward. From inventory management to generating profitable cashflow, businesses need to rely on accurate sales data. Using the proprietary algorithms in Retail ORBIT, our clients are able to forecast their sales and buying cycles several months ahead to maximize profitability.
This competitive edge has allowed Management One clients to stay ahead of the curve and grow their businesses year over year. Contact us today to learn how Management One can use big data to predict what your customers want, what they’re willing to pay, and when they’re ready to buy.