Small Business Saturday: Shoppers urged to support local firms in run-up to Christmas

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Small Business Saturday: Shoppers urged to support local firms in run-up to Christmas

The annual tradition, which started in the US, falls this weekend on 6 December and is expected to boost small businesses £5.3bn

Karl MatchettWednesday 03 December 2025 15:48 GMTCommentsopen image in galleryHiromi Matsunobu from Matchado prepares for Small Business Saturday this weekend, of which American Express is the founder and principal supporter. (Jas Lehal)

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Shoppers are being urged to back Small Business Saturday in the annual push to boost local firms in the run-up to Christmas.

The concept started in the US but took off in the UK in 2013, with the idea that people might focus on one particular day to boost their communities by shopping local and ensuring some of their custom goes to smaller companies.

Data from American Express, the principal supporter of the endeavour, shows that Britons continue to back their local firms, with around 10 million people spending £634 million in-store and online on Small Business Saturday last year.

It’s not just one-off shops and eateries which benefit from the event either, with small online retailers and local service providers also seeing an uplift.

The organisation of the same name, Small Business Saturday, projects that one-fifth of the UK’s spending in the run-up to Christmas could go to small firms this year - an increase of 19 per cent compared to last year and equivalent to around £5.3bn going into small-sized companies.

“It is promising to see positive economic signs ahead of this year’s critical festive season. This bigger seasonal spending pot offers an incredible opportunity to boost the UK’s amazing businesses,” said Michelle Ovens CBE, director of Small Business Saturday UK.

“Despite ongoing challenges, small businesses have experienced a period of relative stability this year. Public support can make all the difference in helping them finally turn a corner as the year ends – especially after Black Friday and Cyber Monday, as small firms can really struggle to keep up with deep discounting events.

“It is vital the nation gets behind our favourite small businesses so we can unleash their power in supercharging the economy next year and delivering immeasurable wider value across society and our local communities.”

Support for small companies remains strong, said Ms Owens’ organisation, with more than four in five people (84 per cent) thinking it is important to support small businesses and almost all (95 per cent) believing they add value to local economies.

“It’s positive to see the attraction of spending with small businesses remains strong among the public, especially with the festive season fast approaching,” said Dan Edelman, general manager of UK merchant services at American Express, while adding the campaign was “vital to encourage the nation to shop small, whatever their budget.”

Hiromi Matsunobu, from Matchado, in London, anticipates that this weekend will be one of their busiest trading periods.

Data from Small Business Saturday suggests an increase in firms coming into existence this year, returning to the 5.6m level last seen in 2020 before the pandemic saw a huge volume of companies shut down across the ensuing years.

open image in galleryResearch by American Express as part of its annual Shop Small campaign has revealed the top ten independent high streets, including Coal Drops Yard and Stable Street in London. (Jas Lehal)

Those hoping to experience their first pre-Christmas sales rush, could also benefit from the initiative, added Jordan Shwide, general manager at Monzo Business. “This year, over 800,000 small businesses were created in the UK - meaning many of the shops people discover this Small Business Saturday could be brand new,” he said.

“We see this growth firsthand at Monzo, with one in five newly incorporated businesses applying for a Monzo Business account. So whether you’re looking for a local treat or the perfect holiday gift, choosing to shop small this weekend means playing a part in the growth journey for the new generation of UK businesses.”

Small and medium-sized businesses (SMEs) make up around 99.8 per cent of all the UK’s total private companies - and around 99.2 per cent of those are classified as small, having fewer than 50 employees. SMEs also account for 60 per cent of UK employment, highlighting their importance to local and overall UK economies.

“Overall, we believe businesses should face 2026 with confidence, and at Small Business Britain, we are here to ensure that they do,” added Ms Ovens. “The UK’s 5.6m small businesses play an indispensable role in driving Britain’s economy forward and creating jobs.”

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