The Great Recession – which officially lasted from December 2007 to June 2009 â€“ began with an 8 trillion dollar burst of the housing bubble and an unprecedented wealth lost to millions of Americans. The resulting loss of wealth led to sharp cutbacks in consumer spending, the loss of consumption combined with the financial market chaos by the housing industry, lead to a complete collapse of business investments which in return lead to dramatic job cuts in all sectors. Businesses of all sizes and industries suffered greatly from the great recession, but the biggest losers were the small businesses of the local communities.
By the summer of 2009, the economy stopped contracting and started what has to be the slowest recovery in modern American history, however, the businesses continued to suffer. The big box retailers survived the recession with minor setbacks due to their deep pockets and the cultural shift of spending in bad financial times. However small businesses took the biggest hit with over 200,000 storefronts going out of business.
The impact of the recession on small businesses became apparent, the backbone of the economy was bleeding badly. Initiatives led by the federal and state governments as well as major banks and venture capitalist became more vibrant in an effort to revive the small businesses of America. In 2009, with a push from American Express, Small Business Saturday was born. Similar to Black Friday but strictly for small businesses, Small Business Saturday follows Thanksgiving and kicks off the holiday shopping. Just one year after the launch of the program, local officials across the nations started to take notice and promote the movement. In 2011, with the backing of elite politicians including President Obama, the Senate voted to pass a resolution in support of Small Business Saturday. The day celebrates small businesses and their impact on the local communities, it also urges consumers to shop locally to empower these businesses. In 2016, small businesses reported 15.4 billion dollars in sales on Small Business Saturday. Small Business Day went from a cause to a day of celebrations. This year, 2017, Small Business Saturday will take place on the 25th of November.
The role small businesses play in the American economy is fundamental and undeniably important to the survival of our competitive markets. Small businesses are responsible for 64 percent of all new jobs generated since 1995 and have the ability to fast drive a recovery from any recession. Small Businesses revives competition, increases local hiring and embraces diversity and they must be celebrated and supported for doing so.
Sabre88 takes pride in the 843,989 small businesses in our home state of New Jersey and aspires to inspire entrepreneurs to elevate our state and nation. Sabre88 wishes all small businesses a busy Saturday and prosperous year.
Author: Faris Souman, Sabre88 LLC
Editor’s note:Â Original Sources
Based on data from the Office of Advocacyâ€™s Small Business Profiles –Â https://www.sba.gov/advocacy/2017-small-business-profiles-states-and-territories
Small Business Saturday is on Nov 25. (n.d.). Retrieved November 20, 2017, from https://www.americanexpress.com/us/small-business/shop-small/
Small Business Saturday | The U.S. Small Business Administration. (n.d.). Retrieved November 20, 2017, from https://www.sba.gov/about-sba/sba-initiatives/small-business-saturday