Small business owners hope economic uncertainty won’t curb spending this holiday season
Consumers spent an estimated $23 billion at small businesses and restaurants on what’s known as Small Business Saturday in 2021, and the Small Business Administration expects a repeat this Saturday.
DALLAS – Consumers spent an estimated $23 billion at small businesses and restaurants on what’s known as Small Business Saturday in 2021, and the Small Business Administration expects a repeat this Saturday.
Pastry chef Jean Chrispin Djomo opened his new French bakery, Les Delices de France Bakery, in the Dallas International District thanks to a loan from the Small Business Administration.
“I decided that I wanted to do something that I love and can also feed myself,” Djomo said.
On Tuesday, SBA Southcentral’s acting director of Regional Communications visited the artery ahead of Small Business Saturday, when consumers are encouraged to shop at small businesses on the Saturday after Thanksgiving.
“Business continues, whether it’s a good year or a bad year, because that’s the nature of the beast,” said Ahmad Goree of the SBA.
Goree says that 97% of all businesses in the US are small businesses.
This holiday shopping season comes at a time of growing economic uncertainty.
“We’re really at an extraordinary juncture in this economy,” said Mike Davis, an economist at SMU.
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Davis believes record inflation could dampen consumer spending and rising interest rates make borrowing money with credit cards or through loans and mortgages more expensive for everyone.
“Right now business is good, but how much longer is it going to last?” he said. “We can expect it to last a long time, but there is a lot of uncertainty right now. We could have a recession sometime in the next few quarters.”
The consumers we spoke to at Djomo’s bakery plan to support him and other businesses as much as possible.
“I’m so glad we found it and I think we’re going to come here for the croissants,” said customer Judith Alvarenga.
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“It’s a bit of a patriotic duty to support that kind of thing,” Ben Jaminchessler said.
The hope is that it will be enough to keep the doors open next year.
“Things are tough, but I’m very hopeful,” Djomo said.
Davis says that everyone should be prepared for some fairly sudden changes in the economy in the coming months.
He says it’s important to put some money away, whether you’re a business owner or a consumer.