Supporting Small Business Makes a Big Impact

Mother Rose, manager of Underground Books, African American book and gift store  in Oak Park.

We all know the Thanksgiving drill - eat your weight in turkey and fixin’s, take a tryptophan-induced nap, then plot your Black Friday shopping strategy. We search through all the newspaper ads trying to decide which stores have the best deals to warrant getting up at the crack of dawn (or worse- midnight!) to go stand in line with 300 strangers, all vying for the latest greatest toy or electronics at the lowest prices of the season. Americans are projected to spend a whopping $59.7 billion this year on Black Friday deals, and an additional $2 billion on Cyber Monday deals online, according to Saveup.com. But how many of us know about Small Business Saturday?

Small Business Saturday was founded in 2010 by American Express to help small businesses get more exposure during one of America’s biggest shopping weekends of the year. It encourages shoppers to patronize local brick-and-mortar businesses that are small and local, like corner bakeries, family-owned restaurants, neighborhood dry cleaners, independent bookstores, “mom and pop” coffee shops, etc. The Small Business Saturday movement quickly took off, yielding over 100 million shoppers patronizing independently-owned businesses on the Saturday after Thanksgiving last year.  So why exactly do we need another excuse to spend our hard-earned money this weekend?

Dollars and Sense

Small business Saturday is more important than just a trend or fad- it makes economic sense. According to the 3/50 Project (an effort to encourage everyone to spend at least $50 a month in locally-owned establishments) for every $100 spent in locally-owned independent stores, $68 returns to your local economy through taxes, payroll and other expenditures. If you take that $100 to a national chain store, only $43 returns to the local economy. That same $100 spent at an online retailer?  $0 for your local economy.

Jobs, Jobs, Jobs!!!

Karen Mills with the Small Business Administration says that small businesses have been responsible for creating two out of every three net new jobs in the U.S over the last two decades. Today, over half of all working Americans own or work for a small business. Scott Shane of Bloomberg Businessweek reported this past spring that since the economic recovery began, small and midsize companies have been producing more jobs than their larger counterparts and creating them at a faster pace than during the recovery from the 2001 recession. Shane cites the ADP Employment Report that shows companies with up to 49 workers employed 2.6 percent more people in March 2012 than they did in July 2009, when the economic recovery began. Similarly, businesses with 50 to 499 workers employed 3.2 percent more people than they did at the start of the recovery. Companies with 500 or more workers, however, employed 0.2 percent fewer people this March than in July 2009.

Small businesses aim to please

When you walk into a small local boutique or bakery, chances are you may be serviced by the proprietor. This gives you the opportunity to learn all kinds of info about their products or services directly from the expert, like the inspiration behind their business, where they source their materials, or when the nest shipment of your favorite product will be available. Small businesses often rely more heavily on referrals than larger corporations that can afford big marketing budgets. Because of that, local business owners tend to take more care to get to know you, their customer, and preserve their relationship with you so that you provide repeat business and share their business with your friends. Local businesses are often more likely to hire people with a better understanding of the products they are selling.

Support your YP peers
Research shows people between the ages of 25 to 34 are the most likely to start a business or be involved in other entrepreneurial activities.  Estimates from the Global Entrepreneurship Monitor show that 17.3% of individuals between the age of 25 and 34 are involved with either starting a business or managing a new business.  Research also suggests that businesses started by young, college-educated individuals are also the most likely to have high growth potential and are among the most technologically innovative.

****

Tweet about it!

Tell us what you’ve done to participate in Small Business Saturday this year, let us know about a great business you think we should patronize, or give a shot out to your favorite local entrepreneur.  Be sure to send it to @GSULYP and include #SmallBizSat. 

Visit YP's Holiday Small Business Directory here.

-Mia Orr

The Skinny on Pizza and Politics

On November 14, 2012, the Young Professionals engaged the community in a discussion of the election results and what they mean for our communities.  This blog aims to touch on and build off of the comments and questions during this forum. 

Participants engaged in a discussion on state and local measures. 

Huddled in a large circle, participants of the GSUL YP Pizza and Politics Discussion tackled the “what now?” and “how did we get here?” questions to determine the meaning of election outcomes for our community.  And by our community, I mean underrepresented middle, working class and poor families of color in Sacramento.

State Budget and Financing

The crowd was relieved with the passing of Prop 30; the Governor’s measure to increase income and sales taxes to thwart cuts to education, yet were concerned that the funding may not reach the schools.  In addition, participants wondered whether we should be content with extra funding or focus on demanding better outcomes.  There was even tit for tat going back and forth about the blame for budget cuts between democrats and republicans.  However, a number of participants stressed the need of bi-partisan solutions and a need to focus on the impact of the Capitol’s decisions on our local communities.

Criminal Justice

It has been a long time coming for 3 Strikes reform. Prop 36, was hailed as a first attempt to address the disparate impact of incarceration of African American males.  However, participants highlighted the need to take action before sentencing and prosecution, and address the underlying factors of poverty and violence in our communities.  One participant discussed how the failure to meet the mental health needs of black victims of crime continues to perpetuate the cycle.  We also discussed the challenges of ex-offenders struggling to integrate back into society with a felony on their record.  “Having a felony is a stigma on your record for life” said GSUL President David Deluz, “We need to work on getting the ‘Employment Exclusion’ for felonies changed.  We need to advocate for the restoration of their full rights, such as housing, being certified in a profession, and voting.”

Dear President Obama, What have you done for us lately?

During the discussion of the national election results, participants expressed that President Obama needs to deliver for the key constituency that got him elected in 2008 and 2012 – The Black Community.  “Obama has done some great things for people in the middle class across the spectrum, but he needs to do something deliberate for African Americans” said commenter Flojuane Griffin. “He can go on air and support gay marriage and Latino issues but he can’t support specific black issues. Now is the time. What are you going to do for us??”  This lead to the major question of just “What is the Black agenda?”  And while the President did not create policies to directly impact African Americans, some participants argued that his overall efforts to help the poor, working and middle class Americans of all races helps blacks at the same time.

Advocating for the Black Agenda

Participants argued that the Black community, unlike other groups, does not advocate for itself.  One participant noted how the gay rights movement is organized; they have an agenda, bills, and fundraise for their cause, as do Latinos.  Another comment was that the Latino and the gay rights movement are fighting for 1st generation Civil Rights whereas African Americans are fighting for 2nd and 3rd generation Civil Rights. We are fighting for equity, fairness and meritocracy.  Our issues are not tangible; that’s especially why we need to organize.  It was also highlighted in the discussion that we need to use our $1.1 trillion dollar spending power to financially support groups that will advocate for our communities.  We have to pay for our voice.

YP Sound off-What are your thoughts?

We discussed a lot, we did not always see eye to eye, but the one thing the majority of us agreed on was the need for a Black Agenda. 

But just what is going to be on the Black Agenda for Sacramento communities and nationally?

How can we mobilize to make sure our voices are heard in local and state government?

 What actions can we take in the community to make a difference? 

YP Sound Off!

 Stay tuned for our upcoming Pizza and Politics Discussions in the New Year.

-Written Breanna Myres and Danielle Williams