In a clear sign that the U.S. economy is on an upswing, the U.S. Small Business Administration (SBA) recently highlighted record consumer engagement during the Thanksgiving holiday weekend. This surge reflects growing confidence among consumers, primarily benefiting small business owners across the nation.
According to data from the National Retail Federation (NRF), nearly 203 million Americans shopped between Thanksgiving and Cyber Monday, marking a historic high. Notably, on Small Business Saturday, approximately 63 million consumers chose to shop in-store, indicating a 2.6% increase over the previous year. This uptick in consumer activity paints a promising picture for small businesses as they prepare for the crucial holiday shopping season.
“The record engagement this past weekend, coupled with spending projected to reach unprecedented levels throughout the holiday season, shows that consumers are confident in the America First economy,” said SBA Administrator Kelly Loeffler. “As households benefit from lower prices and higher wages, Main Street businesses are primed to expand, hire, and invest in the upcoming year.”
The data underscores a shift in consumer behavior. About 130 million shoppers frequented physical stores during the five-day shopping spree, a 3% increase from 2024. Online shopping also saw a positive trend, with 136 million consumers opting for e-commerce—a 9% rise compared to the year prior. This dual growth in both in-store and online shopping presents unique opportunities for small business owners to enhance their sales strategies.
Moreover, Small Business Saturday was particularly beneficial, drawing 62.7 million in-store patrons—a significant increase from 61.1 million in 2024. These figures suggest a stronger commitment from consumers to support local businesses, an aspect that small business owners should capitalize on. NRF forecasts that spending will surpass an impressive $1 trillion during the Christmas season, with projected growth rates between 3.7% and 4.2%, creating strong momentum for small businesses heading into 2026.
Despite a generally positive outlook, small business owners should remain aware of potential challenges. While many report optimism, there are factors to consider, such as the cost of inventory and rising wage expectations, which could impact profit margins. About 74% of small and mid-sized business owners predict higher revenues next year, and a significant number plan to expand operations, marking a renewed sense of confidence on Main Street.
According to the U.S. Chamber of Commerce, small business optimism reached an all-time high in September, echoing the findings from the National Federation of Independent Business (NFIB), which reported confidence levels above their 52-year average for November. This broad sentiment of optimism translates into higher demand for resources and financial support.
The SBA has recognized this increased demand among small business owners, noting a historic level of loans being processed to support business activities. In Fiscal Year 2025, the agency approved $45 billion in loans for approximately 85,000 small businesses, marking the highest volume of loans in its history. This robust lending environment can help small businesses not only start but also grow and navigate challenges as they emerge into a more competitive market landscape.
As the holiday season unfolds, small business owners might consider strategic planning to leverage consumer confidence effectively. This includes optimizing inventory management to meet increased demand, enhancing e-commerce capabilities, and exploring financing options to support expansion plans.
For more insights about the recent trends in consumer spending and small business growth, read the original release from the SBA here. As the dynamics of the economy continue to evolve, staying informed and adaptable will be key for small business success.
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