A day to celebrate the local merchants
Oct. 25 is Small Business Saturday in Canada. Now in its third year, Small Business Saturday was launched by CFIB in partnership with Interac to celebrate the contributions of small businesses across the country.
“With each year, the reach and impact of Small Business Saturday gets bigger and better,” says Corinne Pohlmann, CFIB’s senior vice-president. “There have always been a lot of ‘buy local’ movements, which is great. But this event takes the message to a national scale.”
Last year, the event focused on CFIB’s Shop Small Biz directory, a made-in-Canada online directory designed to connect businesses with potential customers. The directory was launched in 2012 and then revamped extensively in 2013.
Pohlmann says the campaign continues to gain momentum. “The first year was mainly about getting recognition and engagement. Last year it was the directory. This year we really focused on the social media piece.”
CFIB and Interac launched a Twitter contest in early October, where Canadians were asked to nominate their favourite small business, using the hashtag #MyFavSmallBiz. During the two week contest, two participants were chosen each day to receive a $500 spending spree at the nominated business. The business receiving the most nominations will receive a professionally produced local ad campaign — just in time for the busy holiday season.
Pohlmann says small businesses are the lifeblood of their local communities, because of the jobs they provide and the uniqueness they bring to the market. “We need to support them not just for the employment they provide, but also the character they bring to the community. There are so many human-interest stories behind each small business that need to be told.”
Since the first Small Business Saturday in 2012, Interac has been a key partner in supporting this annual celebration of small business. “They are perfectly positioned to be our partner in getting the message out,” Pohlmann says. “One of the biggest challenges small businesses face is the cost of processing credit cards. Interac charges a low-cost flat fee, which is why it has become a preferred method of payment for our members.”
Caroline Hubberstey, head, external affairs for Interac, credits CFIB for bringing Small Business Saturday to life. “It’s a day to focus on putting the idea of shopping local top-of-mind with consumers, whether that business is in a small town or large city.”
Hubberstey agrees that one of the major challenges is the rising cost of credit card payment fees. But consumers can easily help to alleviate the burden by using alternative forms of payment. “When shopping at local businesses and smaller merchants, what shoppers pull out of their wallets matters. When we talk to consumers, a lot don’t realize that paying with a debit card rather than a credit card can make a difference because it helps local businesses keep their costs down.”
Debit card fees equate to mere pennies a transaction (five to eight cents on average), regardless of the total cost of the purchase, Hubberstey explains. “If you buy an item for $100, the store ends up paying about five cents with debit, whereas they would pay at minimum $1.50 for that same purchase if it was paid for by a credit card. If it’s a premium card, that fee could be as high as $3.”
She adds that this year’s contest, combined with the growing success of the Small Biz directory, have added a broader dimension to Small Business Saturday.
“It’s important to remember that those small businesses are part of the fabric of every community. We want to make sure Canadians appreciate what they have to offer and will make a point of supporting their local merchants.”