From: Bizjournals
Photo: SCOTT EELLS / BLOOMBERG
Small Business Saturday shoppers may not know it, but the event started as a campaign for American Express. Now, the company says it is “immensely proud” that Small Business Saturday has grown into a movement.
The New York City-based financial services company launched Small Business Saturday in 2010 as both a promotion and a way to help local businesses rebound from the recession. The goal was to allow small business owners to find a niche between Black Friday, which encourages shopping at major retailers such as Wal-Mart (NYSE: WMT) and Macy’s (NYSE: M), and Cyber Monday, where online sites like Amazon (NASDAQ: AMZN) provide consumers with steep discounts.
Small Business Saturday has since taken on something of a life of its own. In 2011, Congress designated a National Small Business Saturday, which falls on November 26 this year. Now, small businesses organize their own events and promotions, often times completely separate from any American Express (NYSE: AXP) involvement.
“American Express founded Small Business Saturday in 2010 as a response to small business owners’ most pressing need: getting more customers,” a company spokesperson told The Business Journals. “We’re immensely proud to see how each year Small Business Saturday has grown to become the movement that it is today — with small businesses and communities across the country really making the day their own.”
After launching Small Business Saturday, American Express offered its cardholders a $25 statement credit for shopping at small retailers on the day. In 2013, the company scaled back its reward to only $10. In 2015, it offered no financial incentive.
Despite the incentive rollback, the idea grew. In 2012, consumers spent an estimated $5.5 billion at small retailers on Small Business Saturday, according to Fortune. In 2015, that number nearly tripled to $16.2 billion. Last year, approximately 1.3 million small businesses participated in Small Business Saturday, along with 95 million consumers. That marked an 8 percent increase in participation from in 2014, according to Forbes.
American Express has also enrolled more than 4,000 “neighborhood champions” to share materials with local small businesses that want to participate in the event, even if the businesses don’t take American Express, per the New York City Business Journal.
This year, American Express cardholders who enroll an eligible card can earn twice as many points for shopping at small businesses through the end of the year. Through ShopSmall.com, American Express is also providing participating retailers with sample posters, press releases and social media updates.
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