During the holidays and throughout the year, choosing small, locally owned businesses is one of the most meaningful ways we can support our community. A quick stop at a neighborhood shop, cafe, or maker’s market can help keep familiar storefronts open, local jobs steady, and our town’s personality strong.

Those choices add up. According to data from the U.S. Small Business Administration and other economic reports, small businesses make up nearly all U.S. businesses and employ close to half of private-sector workers. They also generate a significant share of the country’s economic output and have created more than half of net new jobs over the past decade.

For many independent retailers and service providers, the holiday season is a make-or-break time. Strong sales in November and December can help them cover year-round expenses like rent, payroll, supplies, and upgrades for the year ahead.

Studies show that when we spend money at small businesses, a much larger portion of each dollar stays in the local community compared with spending at large national chains. In some analyses, roughly two-thirds of every dollar spent at a small business recirculates locally through wages, local vendors, and neighborhood investments.

Whether it is a neighborhood boutique, a family-owned restaurant, an independent online shop based nearby, or a maker at a weekend market, our spending supports real people who are working hard to bring something special to the community.

You do not have to overhaul your entire holiday list to make a difference. A few intentional choices can have a big local impact.

• Plan a walk through your town’s main street or neighborhood shopping area
• Look for local artisans or makers offering handcrafted gifts or seasonal decor
• Pick a small restaurant, coffee shop, or bakery for your next get-together
• Shift a few online purchases to local or independent retailers when you can
• Share your favorite local businesses on social media and tag them
• Buy gift cards so your support continues after the holidays
• Leave positive online reviews to help neighbors discover new local spots

Even moving a portion of your holiday spending toward small businesses can help them plan confidently, retain staff, and keep investing in the community.

Supporting small businesses is about more than checking items off a gift list. It is about choosing the kind of community we want to live in. When we direct more of our time and budget to local businesses, we help keep our streets active, our storefronts unique, and our local economy more resilient.

This season and beyond, consider which everyday purchases you can keep close to home. The items you buy might be small, but the support behind them is anything but.

Sources

U.S. Small Business Administration — Frequently Asked Questions About Small Business (2024)

U.S. Chamber of Commerce — Small Business Data Center

American Express — Shop Small Economic Impact Study

U.S. Bureau of Labor Statistics — Small Businesses and Net Job Creation (2013–2023)