The Economic Impact: A “Shopping Small Business Black Friday” Scenario
Let’s assume an estimated 130 million people shopped on Black Friday in the US (a common estimate in recent years). If each committed to buying just one item from a small business or artist for an average of $30, instead of a large corporation, that would represent a direct transfer of:
130,000,000 shoppers x $30 = $3.9 Billion
This $3.9 billion, when spent at large corporations, follows one economic path. When spent at small businesses, it follows a completely different, more localized one, thanks to the “Local Multiplier Effect.”
The Local Multiplier Effect: A Detailed Breakdown
The chart below illustrates the journey of that $30.
Why This Multiplier is So Powerful:
A study by the American Independent Business Alliance (AMIBA) found that $68 of every $100 spent at a local business stays in the local economy, compared to only $43 when spent at a chain. This direct injection circulates and recirculates, creating a wave of economic activity far beyond the initial purchase.
The Ripple Effects: A Sector-by-Sector Impact
- The Direct Impact on Artists & Small Businesses (The “Benham Design Concepts” of the Country):
- From Survival to Stability: For countless small businesses, the holiday season is make-or-break. A surge of this magnitude would not just ensure survival but provide capital to pay off debt, invest in new equipment, and build a safety net.
- Job Creation: This would directly create jobs in small-scale manufacturing, packaging, customer service, and marketing. These are often more meaningful, skilled jobs compared to typical retail positions.
- A Golden Age of Creativity: Financial security allows artists to take risks, experiment, and refine their craft, leading to a more vibrant and diverse cultural marketplace.
- The Impact on Large Corporations:
- A Multi-Billion Dollar Hole: Losing a foundational $3.9 billion in revenue would be a massive shock to their quarterly earnings. While they would still be colossal, it would force a strategic rethink.
- The “Local Pivot”: We would likely see a frantic effort to capture this market. Think Walmart launching a “Handmade in America” section, Target creating pop-ups for local artists, and Amazon amplifying its “Amazon Handmade” platform. Authenticity would become their biggest challenge, as we all know that anything they promote, they exploit.
- The Impact on Communities & the National Economy:
- Revitalized Main Streets: This capital infusion would reverse the trend of shuttered storefronts, leading to more vibrant, walkable, and unique downtowns.
- We would bring local culture back to our cities instead of bland ticky tacky repeating architecture built by corporations that care about exploitation, not creativity and individualism.
- A More Resilient Economic Base: Local businesses are less likely to flee a community for a tax break abroad. This creates a stable economic foundation that can better withstand national recessions.
- Increased Civic Engagement: Small business owners are deeply rooted. They sponsor Little League teams, donate to local charities, and participate in city council meetings, strengthening the social and civic fabric.
The Caveats and Challenges
This scenario isn’t a perfect utopia. It comes with real-world complications:
- Scalability: Could a single Etsy shop handle 10,000 orders in a weekend? Almost certainly not. The system would be overwhelmed, leading to shipping delays and customer service challenges. The infrastructure for small business logistics is not built for this scale.
- However, if you shop at local craft shows and local businesses, you would spread out your dollars across your community and completely cut out Etsy from harvesting a percentage of your purchase, and not have to worry about overwhelming a small business. You can see what they have in stock.
- Consumer Access & Habit: The convenience of one-stop shopping is powerful. Redirecting purchases requires more intention, research, and time from the consumer.
- This is a perfect example of how you can vote with your dollars. What is important to you? If a strong local economy and a livable city are important to you, make the extra effort to shop small and shop local.
- Price Point: Handmade, ethically sourced goods simply cost more than mass-produced items. This could price out some consumers, highlighting an inequality issue in conscious consumerism.
- If you are tight on money you can still participate, a single $30 item form a small buisness from every shopper can create a butterfly effect of positive change in our economy.
Conclusion
This “Shopping Small Business Black Friday” thought experiment demonstrates that the economy is not a static machine but a dynamic ecosystem. It proves that our daily spending habits are the votes we cast for the world we want to live in.
I’m the owner of Benham Design Concepts, a mixed media art studio where I design and build custom furniture and other works of art using wood, glass, stone, and various metals.
In this blog, I talk about the art I create, my journey, and the things I learn along the way.