U.S. SMALL BUSINESSES ARE RESPONSIBLE FOR $4.8 TRILLION IN GDP, EQUIVALENT TO THE THIRD LARGEST ECONOMY IN THE WORLD, ACCORDING TO A NEW STUDY FROM AMERICAN EXPRESS
An average two-thirds of every dollar ($0.67) spent at small businesses in the U.S. stays in the local community. Every dollar spent at small businesses creates an additional 50 cents in local business activity as a result of employee spending and businesses purchasing local goods and services, according to the Small Business Economic Impact Study from American Express.
SMALL BUSINESSES ARE MAKING A BIG IMPACT
The Small Business Economic Impact Study, a county-level economic analysis on shopping small commissioned by American Express, provides a closer look at the economic benefits of shopping locally and the impact of small business on communities. The study found that if small businesses in the U.S., defined as businesses employing fewer than 100 employees, were a country, they would have a GDP of $4.8 trillion, equivalent to the GDP of Japan, the third largest economy in the world.
The study also demonstrated the extent to which small businesses support jobs locally. In addition to small businesses directly employing members of the community, spending by those small businesses and their employees in the area also supports local jobs. In fact, for every ten jobs at a small business, another seven are supported in the local community.
According to the 2018 Small Business Saturday Consumer Insights Survey, nine in ten (91%) consumers believe it is more important than ever to support small businesses this holiday season, and 83% plan to do at least some portion of their holiday shopping at a small, independently owned retailer or restaurant - either in person or online.
“When shoppers spend locally at small businesses, communities win,” said NFIB CEO and President Juanita D. Duggan.