As advertisements have been reminding us for weeks, today marks the cacophony of commercialism that is Black Friday. But the day that follows — Small Business Saturday — could have a more significant impact on our community.
Consider: When you shop at a big-box store that has a national profile, state and local sales tax is collected and local employees are supported, but the profit gets sent to far-off headquarters. In contrast, when you shop at a locally owned store, the sales tax and employee wages remain in Washington, and so do the corporate taxes and the salary for a locally based proprietor.
There are obvious benefits to supporting a store owner who lives in the community rather than one who lives in, say, Bentonville, Ark.
That is not to take away from national retail chains; they employ thousands of people throughout Clark County, and they offer desirable products at competitive prices. On average, studies have found, national retailers offer higher wages than small stores. But independent, locally owned retailers do much to enhance the unique culture of a community.
That is the impetus behind Small Business Saturday, which in itself is little more than a marketing ploy. Created by American Express in 2010, the “holiday” is a counterweight to Black Friday and Cyber Monday, which typically promote large retailers and e-commerce rather than independent brick-and-mortar stores.
Those brick-and-mortar outlets retain a particular charm. The authors of a 2019 study from Washington State University’s Carson College of Business surmised: “We’ve found shoppers often find inspiration for gifts while perusing the aisles and value in-person customer service and the ability to see and feel the products.”
Online shopping offers convenience, but there also are advantages to finding a unique, locally sourced item in an out-of-the-way shop that cannot afford a national advertising campaign or glossy newspaper inserts.
Those advantages are particularly evident in our state. In a report issued this week, Bankrate.com wrote: “Washington is the friendliest state for small businesses because of its robust small-business activity, ample skilled labor and abundant small-business financing.”
The report notes that, according to federal statistics, small businesses account for 49 percent of employment in Washington and have contributed to a vast majority of job growth in the state since the COVID-19 pandemic. Not all of those are retailers, of course, but locally owned shops play a significant role in the state’s small-business community. Collectively, there is nothing small about small business in Washington.
With an increase in national sellers and the rise of online shopping, the demise of small retailers has been predicted for decades. It is difficult to compete with a big-box store that can purchase products in volume and sell for discount prices, or with an online retailer that can sell just about every item imaginable and deliver it to your door. But local companies provide outlets for entrepreneurs and products with a distinctive Northwest feel.
Black Friday — and the Christmas shopping season in general — often is viewed as a measuring stick for the health of the American economy. If shoppers have money to spend and are willing to spend it, that demonstrates confidence in the financial direction of the country.
The same can be said about the local economy, where shoppers can use Small Business Saturday — and every other day — to boost our community.
