81% Prefer Small Businesses Over Major Retailers — Which Ones Need Your Business Most?
Written by
Cynthia Measom
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Small businesses are a big deal. According to GOBankingRates’ Small Business Spotlight survey, 81% of consumers prefer to spend their money at a small business over a chain or major retailer.
But some types of small businesses are struggling and need more attention from patrons. Here’s more on which small businesses need you to shop there the most — plus, find out what you can do to help the small businesses in your community.
What Are the Most Popular Types of Small Businesses?
According to the survey, restaurants and coffee shops are the most-frequented small businesses, with 31% of respondents indicating it as such. Other small businesses that consumers frequent include boutiques (17%), bars (16%) and bookstores (16%).
What Types of Small Businesses Need Your Attention?
According to the survey, fitness studios, pet shops and salons and barbershops need your attention the most, because they are least frequented by consumers.
Non-chain fitness studios are especially struggling, with only 4% of respondents saying they regularly go there. Private salons and barbershops are the next least-frequented with only 5% of respondents indicating it as a frequent stop. Pet shops are also in need of more business, with only 9% of respondents stating they regularly shop there.
How You Can Help Struggling Small Businesses the Most
According to the survey, 51% of respondents said to support small businesses, they prioritize their spending there.
And while you can, for example, sign up for a monthly fitness membership, shop for pet food and supplies at the pet store and start getting your hair cut and styled at a privately owned salon or barbershop, you can also tell others. According to the survey, 78% of respondents tell their friends and family or refer customers to support a small business.
Here are some other ways you can help small businesses thrive.
Start With a Review
Reviews are valuable — 43% of survey respondents say they write reviews to support small businesses.
“If a business is online, your part involves leaving an online review detailing your experience. If it was a good one, spill the beans on why it was exceptional,” said Joe Camberato, the CEO of National Business Capital. “Get specific — mention names, particular products and recount those moments of positive interaction. This way, when the next potential customer comes along, he or she will see your review and might just swing by.”
Dive Into Their Social Media
“Following someone on social media and actively engaging with their content are two distinct ballgames,” said Camberato. “We’ve all scrolled past countless posts without a second thought because they didn’t stand out. But when you engage, you’re interacting, pushing brand visibility and paving the way for future sales.”
You can also take it a step further and write posts on your own social media accounts to help promote different small businesses. According to the survey, just under half — 48% — of respondents share information about small businesses on their social media pages.
Carve Out a Routine With Others
“Why not create a tradition of visiting a local business together regularly?” asked Camberato. “Gathering everyone might sometimes feel like herding cats, but when there’s good food or entertainment involved, the motivation skyrockets. Plus, you’re giving fresh faces a taste of the brand you enjoy — a win-win for all parties involved.”
Invite Small Businesses To Participate in Community Events
Another way you can help small businesses is to provide opportunities for exposure.
“If you’re having a customer appreciation event, opening day of sports games event, trunk or treat, back to school night at a daycare, we would love to be there,” said Brandon and Janet Counts, owners of Potomac Plumbing & Gas, Inc. “Engaging with the community we serve is an awesome way to give back, build relationships and can help us increase brand awareness in our community.”
Buy Gift Cards or Certificates
Even if you don’t have a need to frequently spend money on things for yourself at certain small businesses, you can buy things for others to help encourage them to start shopping there and spread the word. Approximately 21% of survey respondents said they buy gift cards to support small businesses.
“For birthdays and holidays, buy a gift card from a small business to help the business make money and hopefully get more loyal customers,” said Brett Sussman, head of marketing and sales, business blueprint and banking at American Express.
Methodology: GOBankingRates surveyed 1,028 Americans aged 18 and older from across the country between June 27 and June 29, 2023, asking ten different questions: (1) How do you support small businesses? (Select all that apply); (2) Which small businesses do you most frequent?; (3) How often do you spend money at small businesses?; (4) Do you prefer to spend money at a small business over a chain or major retailer?; (5) Would you choose to spend at a small business over a major company even if it meant paying a higher price?; (6) What do you prefer about a small business over a chain or major retailer? (Select all that apply); (7) Over the past three years how has your relationship (or spending) with small businesses changed?; (8) How do you interact with small businesses the most?; (9) Have you ever considered starting a small business?; and (10) What is preventing you from starting a small business?. GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
More From GOBankingRates
