Small Businesses Bullsish Ahead of 'Critical' Holiday Season: SBA Head

The upcoming holiday season is shaping up to be a critical period for small businesses, with the U.S. Small Business Administration (SBA) predicting a surge in consumer spending. In a recent announcement, SBA Head Isabel Casillas Guzman expressed optimism about the season, highlighting the role of small businesses in driving economic growth and job creation.

Small businesses have been a driving force behind the U.S. economy, accounting for over 40% of America's economic output and generating two-thirds of net new jobs. The holiday season is particularly crucial for these enterprises, as increased consumer spending helps them achieve annual revenue goals. The SBA's Season of Small Business campaign emphasizes the importance of supporting local businesses throughout the holiday season, with Small Business Saturday serving as the kickoff event.

The SBA's optimism is supported by data from American Express, which estimates that consumers have spent nearly $201 billion during Small Business Saturday since its founding. The event, co-sponsored by the SBA, has become a mom-and-pop counterpart to Black Friday, driving significant consumer spending at independent retailers and restaurants. In a recent survey, 85% of consumers reported that they planned to shop small this holiday season, indicating a strong appetite for supporting local businesses.

Government investments and initiatives, such as those by the SBA, have contributed to the "Small Business Boom" and influenced consumer spending behavior during the holiday season. The SBA invested nearly $50 billion in fiscal year 2023 to support American small businesses, including $27.5 billion in 7(a) loans. This investment has helped small businesses access capital and fosters an environment of growth and innovation.

The 2024 holiday season could see an unprecedented surge in consumer spending, fueled by the "Small Business Boom" under the Biden-Harris Administration. This trend has resulted in nearly 20 million new business applications nationwide, with women and people of color driving the growth. With an estimated $201 billion spent by consumers supporting small businesses on Small Business Saturday, the SBA's Season of Small Business campaign aims to encourage shoppers to "Gift Big and Shop Local™" throughout the holiday season, driving economic growth and job creation.

Small businesses play a crucial role in local economies, contributing to job creation and economic output. They also support local community initiatives and development by fostering a sense of community and driving local economic growth. Despite economic challenges, small businesses have demonstrated remarkable resilience, adapting to changes and embracing opportunities to grow and succeed.

In conclusion, the upcoming holiday season holds great promise for small businesses, with the SBA predicting a surge in consumer spending. Government investments and initiatives, such as those by the SBA, have contributed to the "Small Business Boom" and influenced consumer spending behavior during the holiday season. Small businesses not only drive economic growth but also support local community initiatives and development, making them an essential part of the American economy. As consumers embrace the spirit of the holiday season, supporting local small businesses will be more important than ever.