The message “Shop Local” or “Support Local Businesses” is displayed everywhere; television, the radio, billboards, etc. With such a passionate effort for everyone to support small businesses, ask yourself, “How often do I shop local?”
In a study of 1,500 Americans, 82 percent of consumers say they would spend more money to support small businesses during and after the pandemic. Many were forced to close their doors during COVID-19, which caused small business sales to plummet 52 percent across the country. Although people say they want to support these local companies, sales on Small Business Saturday (Late November Each Year) dropped a whopping 65 percent from 2019. While small businesses suffered, Amazon delivered a record performance in 2020. Amazon’s annual revenue saw a 38 percent spike from 2019 to 2020. There are few factors that have skewed these statistics in favor of Amazon:
- Small businesses were forced to shut down their operation in many states (mentioned above).
- Local companies don’t have the budget to hire someone to build a high-functioning e-commerce website so they can sell their product online. 20 percent of small businesses say they are working on this.
- The Amazon experience is cheaper and easier.
- Many American’s went through financial troubles during the pandemic, therefore couldn’t afford to shop local.
Although these are legitimate factors, a $7 billion drop on Small Business Saturday from the previous year seems like a missed opportunity for many financially capable Americans to positively impact local businesses.
Importance of Supporting Small Businesses
Did you know, for every $100 spent at a small business, $48-$68 is put back into the local economy? Small businesses contribute to local economies by bringing growth and innovation to the community. They also stimulate economic growth by providing employment opportunities to those who were weeded out of the competitive corporate world. Overall, reasons to support small local business include:
- Strengthen the local economy
- Create more jobs
- Business to business support
- Lower your taxes
- Establish community relationships
- Personalized customer service
- 92 percent of small business owners donate to local charities
As of September 2020, about 100,000 businesses had permanently shut down because of the pandemic. Small local companies still need help! It has never been so important to support the small businesses that once fueled our economy!
What does this have to do with USA Snax?
One of the things we’re most proud of at USA Snax is we get our delicious snacks from small businesses from the featured state of the month! Yes, this means our boxes might cost a little more than other snack boxes. But when you support USA Snax, you’re supporting small businesses that need your business most.
Become a part of the USA Snax family and enjoy delicious American-made snacks from hidden gems all across America!
Sources: Intuit Mint Life, Forbes, Small Business Chron, Fortune