American Express: Shop Small And Help Small Business

With a government that is still failing to pass a second stimulus package to help those that have been negatively impacted by the coronavirus it seems that big businesses are having to step up.

While president-elect Biden has stated a second round of stimulus checks will be released once President Trump has left office, if the executive order needed has not been signed in time Biden could temporarily renew enhanced unemployment aid as did Trump in August.

Until then many smaller retailers, specifically independently owned companies, will continue to struggle to compete against the ‘big boys’ of retail, with many having to close for good while the larger retailers pick up the custom.

Jim Cramer of CNBC agrees saying, “these companies have picked up a giant amount of allegiance… These companies have wiped out a lot of smaller companies because there’s no stimulus.”

With Congress continuing to fail the smaller business it is no surprise that some privately owned companies are coming up with initiatives to help support them.

As well as the Up & Running grants recently launched by eBay, American Express have also stepped up to the plate.

November 28 is Small Business Saturday and this year American Express are using the day as the launch of a bigger campaign – the Shop Small campaign – in which the credit company is highlighting the impact small businesses have not just on their customers but also in their communities.

Colleen Taylor – the president of merchant services for American Express – explains how they are working to help the smaller retailer, saying, “Small Business Saturday started ten years ago to help small businesses come out of the Great Recession.

“Back then, we thought that was the worst thing that could ever happen to us, but 10 years later, here comes the pandemic. We started planning early in the year to not just make Small Business Saturday a huge one-day success but to encourage people to shop small throughout the whole season.”

So far this year, American Express has worked with 100 larger companies to deliver services and special offers to small businesses in a program called Stand for Small, as well as committing over $200 million to its Shop Small campaign. The program is designed to not only help small businesses to continue to operate in the harsh world of 2020, but also to let them know that the bigger companies – including Best Buy, Dell, IBM and Amazon – are looking out for them.

Taylor continues, “We are all part of a larger ecosystem. It wasn’t hard for us to convince these companies to join us in this effort. They recognize that it’s the right thing to do and it’s good business too.”

As part of the company’s determination to make Shop Small a success, American Express encouraged their members to shop small by “essentially giving card members additional dollars to shop at small businesses.”

While many in the U.S. have always appreciated the impact small business has on communities the on going pandemic has made their roles clearer. While households were forced to rely on government handouts, many small businesses ensured their communities were looked after, providing both goods and support where needed when possible.

It has also been reported that numbers of volunteers and goods or services being donated to local causes and businesses has also increased through the year, with many wanting to help those in need.

A recent economic study has discovered that out of every dollar spent at a small business, 67 cents remains within the community. The survey, which questioned more than 1,000 consumers, found that due to the pandemic shoppers felt more loyal to small businesses rather than large ones following the impact the pandemic has had.

To build on this loyalty, Shop Small is asking consumers to use the hashtag #ShopSmall, as well as tag the business they have used, on their social media posts as a sign of solidarity and to encourage others to also use that business.

It is estimated that by being ‘approved’ on social media small businesses could see an extra $197 billion. This is backed up by 80% of small business owners surveyed agreeing that any positive social media endorsements increases business, with many shoppers heading to retailers that their family and friends have suggested.

Last year Small Business Saturday generated $19.6 billion in spending on America’s Main Streets and it is hoped that by helping small businesses the economy, as a whole, will benefit.

“Small businesses have been so innovative this year, pivoting to respond to what their customers needed during the pandemic, whether it was curbside pickup, home delivery or getting into e-commerce,” Taylor says.

Taylor continues, “There is no one more resilient than the small business owner. If we can support them this season, then they will have the fortitude and wherewithal to make it through 2021.”