How to Support Small Businesses During the Holidays

Small businesses are a huge part of the American economy, making up 99% of all businesses in the nation. But even in good times, small businesses have around a 30% long-term survival rate, making economic uncertainty and a global pandemic extremely worrisome for many small business owners. Find out how you can support small businesses in your community this holiday season to help make your local economy a bit merrier and brighter.

In This Piece:

• How Has the COVID-19 Pandemic Affected Small Businesses?
• How Can You Support Small Businesses During the Holidays?
• How Can You Support Small Businesses on a Budget?

How Has the COVID-19 Pandemic Affected Small Businesses?

COVID-19 has hit the bottom line hard for businesses and consumers alike. Businesses of all sizes were overwhelmed by the increased consumer demands for shipping, delivery and curbside service, and many were forced to close for weeks or even months in 2020. While 2021 has brought some looser restrictions and increased sales for many, the holidays are still a make-or-break time for most small businesses.

Bluehost conducted a State of Small Business Marketing study in August 2020 to find out small business owners’ outlook for the future. While 72% of business owners said they were optimistic about the future, they do have concerns:

• 44% are worried about finding new customers through 2021
• 30% are worried about long-term economic impacts from the pandemic
• 21% are worried about lower-than-normal sales or consumer demand

At the same time, many consumers have experienced a negative impact to their personal budgets during COVID due to lost jobs and reduced salaries. As a result, some might be planning to scale back on total holiday spending, and others might be turning to different shopping habits to help keep themselves and their families safe.

How Can You Support Small Businesses During the Holidays?

Whether you want to shop online from the comfort of your couch while watching Christmas movies or you’re keeping the budget a little tighter to make up for financial shortfalls, you can still support small businesses. Here are a few tips on how to do that.

Stay Local

If you’re going to spend, choose to shop local instead of buying from big-box retailers or huge e-commerce platforms. Not sure if there’s a small business offering what you need? Ask friends and family for recommendations, check out your local chamber of commerce or do some social media searching to locate local entrepreneurs. 

Call Ahead

Call ahead to ask about the best times to shop. Going out during slow times can limit your contact with people and help you get the best possible service from local businesses. This can also be an opportunity to find out if the business has what you’re looking for and ask about personalized offerings, which are always a holiday hit.

Spread Your Shopping Out

Starting as early as possible and buying a little at a time can take the sting out of holiday costs while letting you enjoy the festivities and support small businesses. It also helps you avoid supply chain issues and gives you a better chance of actually having your gifts in hand for the big day even if there are shipping delays.

Take Advantage of Sales

Plan ahead to take advantage of Small Business Saturday deals. Though stores might spread out the deals this year, Small Business Saturday is still on. Many businesses will offer some great deals and sales, so take advantage for your holiday shopping.

Be Patient and Prepared

The bare shelves that started in early 2020 may be a little fuller, but the supply chain issues caused by COVID-19 are still ongoing. They’re also expected to keep going into next year. This means you’ll need to start your shopping early and be prepared with backup options. It’s also important to remember that businesses—especially small businesses that depend very much on customer satisfaction—are just as frustrated by it. Being positive and patient when interacting with businesses and staff can go a long way to keeping everyone’s holiday merry and bright.

How Can You Support Small Businesses on a Budget?

If your holiday budget is tighter this year, you can show your support for small businesses by using them for events or needs you already have. This could include dining out, using local bakeries and caterers if you need help with holiday feasts and buying tickets for nearby festivities and events if it’s safe to do so. While many are still worried about COVID-19 risks, businesses have had time to prepare new ways of serving customers and holding events in a safe manner. 

If money is tight this holiday season, you can still support your local businesses by:

• Liking and sharing posts on social media
• Recommending your favorite shops to friends and family
• Bringing homemade goodies or coffee in as a thank-you to the staff

Support Small Businesses this Holiday Season

If you want to support small businesses with your holiday shopping while also benefiting yourself or your family, consider getting a rewards credit card. You can earn points or cash back on spending and use those benefits to fund more holiday fun or future travel or spending.

Sign up for ExtraCredit. to get access to 28 of your FICO scores and a Reward It feature that helps you find credit card offers and earn cash back on qualified offers.

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