Small Businesses Hope for Their Own Slice of Black Friday

While many Shorewood shoppers will flock out of the village to places like Walmart and Bayshore Friday looking for the biggest discounts, local businesses hope shoppers will remember them, too.

And on Saturday, local shops hope people will make an extra effort to patron local shops for Small Business Saturday, a promotional event in its second year spearheaded by American Express.

Organizers hope millions of Americans will shop at small businesses to earn rewards such as $25 statement credits for American Express card members who spend $25 or more at a qualifying small business. More than 2 million people "like" the event's Facebook page.

The event falls on the five-year anniversary of , a popcorn eatery in Shorewood. Owner Jackie Chesser said they will be handing out free branded cups on Saturday and hoping people will also order gift packages of popcorn for the holidays.

"It's a family time, so people can come here with their families over the holidays and just get out and let their hair down," Chesser said. "It's just a fun place."

Business Improvement Director Jim Plaisted said he hopes the day will bring attention to small stores in Shorewood, which play a central role in the village's business district.

"You can count on one or two hands the amount of national retail in Shorewood," Plaisted said. "You’ve got a very urban suburb, and that lends itself to small locally-owned retail, as opposed to when you get to the outer 'burbs when you have all the big businesses."

He said events like Small Business Saturday and other village-wide promotions help give small businesses a stronger voice to compete with bigger businesses. On Dec. 3, businesses will team up for a holiday shopping day: Stop, Shop, and Restore.

"We're always looking for those opportunities to give them a greater voice and let people know that they’re there," Plaisted said.

Looking for that same strength in numbers, 192 small businesses in southeastern Wisconsin are members of Local First Milwaukee, a coalition that promotes shopping local for the economic, environmental and social effects on a community.

“We’re not saying it’s wrong to buy things at a chain store; it just means so much more when you buy it locally,” Local First Milwaukee President Pam Mehnert said. “That money stays in Milwaukee and creates jobs here.”

According to a report conducted by American Express OPEN Independent Retail Index, locally owned businesses declined from 59 percent in 1990 to 48 percent in 2009 nationally.

However, local business owners are optimistic about the future of small business.

In a survey of the Local First Milwaukee members, Mehnert said 55 percent reported that their businesses were growing — meaning sales are up and they are hiring new employees.

The member businesses have monthly gatherings in which they exchange ideas, and many use each other’s products and services in their stores. 

“Local businesses tend to do business with other local businesses,” Mehnert, who is also the general manager of Outpost Natural Foods, said. “At Outpost, our accountants are local, our attorneys are local, we’re buying packaging supplies local. We work together.”

The in Shorewood, which has been promoting Small Business Saturday, operates with a similar philosophy. All of their artists — about 40 of them — are from Wisconsin, except one from Minnesota that owner Leslie Phillips went to college with.

"I'm really against shopping at big retailers and buying stuff made in China, especially with the economy the way it is," Phillips said. "We're just trying to do our small part where we live."

Mehnert said she thinks one reason people like to support local businesses is because of their responsiveness to individual needs.

“When a supply chain is controlled by larger corporations, they’re actually determining what products are available to customers,” Mehnert said. “It’s this whole complex system of control. But a local bookstore is going to sell titles that aren’t just in the top 100; they’re going to take special requests and provide different services for individuals.” 

At Hummingbird, this kind of customer service is frequent.

"People will see like a bowl they like but they might want it in a different color," owner Leslie Phillips said. "A lot of the artists are really into doing custom stuff so that’s been fun."

Randall Hoth, president of the Better Business Bureau, said the bureau also supports small locally controlled businesses because the owners often work directly with consumers and have a deep investment in the community. Hoth said 90 percent of Wisconsin businesses who are accredited with the Better Business Bureau and pledge to uphold its code of ethics are small business owners with 25 or fewer employees. Eighty percent have ten or fewer employees.  

“I think it’s a huge thing for the consumer to know that you’re doing business face-to-face with an owner that cares about your business,” Hoth said. “They’re the ones pledging to do the right thing for their customers.”

Hoth said he hopes consumer appreciation for small businesses extends beyond Small Business Saturday.

“It’s not just for one Saturday that we’re supporting this,” he said. “We think small businesses are important to the economic future of this country. It’s a really viable and important economic engine for growth.”