Financial Advantages of Supporting Small Business Saturday

By Charlestien Harris, Retired Financial Coach Southern Bancorp

Small Business Saturday was founded by American Express in 2010. It is observed on the Saturday immediately following Thanksgiving and is considered an important part of the busiest shopping season for small businesses. The day is designed to encourage consumers to patronize local small businesses, which typically have 500 or fewer employees.

As consumers, we are constantly searching for ways to save more of our hard-earned money. Below are several ways you can save money while supporting the local economy that these small businesses help sustain:

1. Shop Locally

Visit and buy from small business owners in your community. You can save on gas because you travel shorter distances for shopping trips. A larger portion of money spent at local businesses recirculates within the community compared to money spent at most larger chain stores. You also get your items immediately and may save additional money by avoiding shipping costs.

2. Shop for Deals

Many small businesses offer special discounts, promotions, or giveaways on Small Business Saturday. If you cannot shop in person, check for online specials, curbside pickup, or delivery services from local businesses.

3. Job Creation

Small, local businesses are significant employers, creating job opportunities for community residents. Supporting small businesses helps strengthen the local job market. More jobs usually mean more money circulating in the local economy.

4. Negotiations are Possible

Prices at larger chain stores are usually fixed and non-negotiable. In some cases, your local small business may be willing to negotiate on an item that has been sitting on the shelf for a long time. This could save you money and stretch your holiday spending dollars further.

5. Homemade Items May Cost Less

Local businesses that sell handmade goods often gain an advantage over chain retailers by cutting out the middleman. Because of their location and lower overhead costs, they may add less to the sale price. These savings are often passed on to the customer.

6. Build a Strong Tax Base

Sales taxes fund local community projects and provide vital services such as police and fire protection, street repairs, and trash collection. The more you shop locally, the more businesses contribute in taxes, which can reduce the amount residents pay. This may mean you, as a local resident, pay less in taxes or at a reduced rate.

Small Business Saturday is a great way to stretch your holiday dollars further. During the holidays, consumers often ignore their family budget, but shopping locally can help curb some of the overspending that occurs during this time.

For more information on this and other financial topics, you can write to me at P.O. Box 1825, Clarksdale, MS, or email me at charlestienharris77@gmail.com.

Until next week — stay financially fit!

Charlestien Harris is our financial contributor, a retired financial expert with Southern Bancorp Community Partners.