Governor proclaims Nov. 29 Small Business Saturday – The Greenville Advocate

Report on the Economic and Social Impact of Small Businesses in Alabama in Alignment with Sustainable Development Goals

Executive Summary

This report analyzes the significant contributions of small businesses to Alabama’s economy, framing their impact within the context of the United Nations Sustainable Development Goals (SDGs). Data provided by the National Federation of Independent Business (NFIB) and the Small Business Administration (SBA) indicates that supporting local enterprises through initiatives like “Small Business Saturday” is a direct mechanism for advancing goals related to economic growth, sustainable communities, and responsible consumption.

Contribution to Decent Work and Economic Growth (SDG 8)

Small and medium-sized enterprises (SMEs) are fundamental to achieving SDG 8, which promotes inclusive and sustainable economic growth, full and productive employment, and decent work for all. According to the NFIB Alabama state director, the role of small businesses in the state’s economy is substantial:

• SMEs constitute over 99% of all business entities within the state.
• They are responsible for employing approximately 40% of Alabama’s private-sector workforce, providing crucial job opportunities and fostering economic stability.

This demonstrates that the small business sector is the primary engine for job creation and sustained economic vitality in the region, directly aligning with the targets of SDG 8.

Fostering Sustainable Cities and Communities (SDG 11)

The economic activity generated by small businesses directly supports SDG 11 by making communities more inclusive, resilient, and sustainable. The localization of commerce strengthens community infrastructure and reduces economic leakage.

• Local Economic Circulation: An estimated 67 cents of every dollar spent at a local small business remains within the community, funding local services and investments.
• Economic Multiplier Effect: Each dollar spent generates an additional 50 cents in local economic activity, as businesses and their employees procure goods and services from other local enterprises.

This model ensures that consumer spending translates directly into thriving, self-sufficient communities, a core objective of SDG 11.

Promoting Responsible Consumption through ‘Small Business Saturday’ (SDG 12)

The “Small Business Saturday” initiative, as highlighted by the SBA Alabama District Office, serves as a practical application of SDG 12 (Ensure sustainable consumption and production patterns). It encourages consumers to make conscious purchasing decisions that support sustainable local economies over less sustainable, long-chain retail models. The objectives of the initiative are:

1. To raise consumer awareness of the diverse range of local enterprises, including retail, construction, restaurants, and professional services.
2. To encourage direct financial support for local businesses, thereby reinforcing a sustainable and equitable economic ecosystem.
3. To position conscious local consumption as a key activity during the peak holiday shopping season, providing a responsible alternative to mass retail.

By choosing to “shop small,” consumers actively participate in a more sustainable economic model that supports community well-being and aligns with global sustainability targets.

1. SDGs Addressed in the Article

SDG 8: Decent Work and Economic Growth

• The article directly connects to SDG 8 by emphasizing the role of small businesses in job creation and economic vitality. It states that small businesses “employ about 40% of our private-sector workforce” in Alabama and are crucial for “keep[ing] Alabama’s economy strong.” This highlights their contribution to productive employment and overall economic growth.

SDG 11: Sustainable Cities and Communities

• The article addresses SDG 11 by focusing on the local impact of small businesses. The statement, “67 cents of every dollar spent at a small business stays in the local community,” illustrates how these enterprises strengthen local economies. The text further notes that supporting them helps keep “communities thriving” by fostering jobs, services, and local investments, which are key components of sustainable and resilient communities.

SDG 12: Responsible Consumption and Production

• The promotion of “Small Business Saturday” and the call for consumers to “shop locally” and “support our local small businesses” align with the principles of SDG 12. This encourages a pattern of consumption that supports local producers and reduces the environmental and social costs associated with long supply chains, thereby promoting more sustainable economic models.

2. Specific Targets Identified

Under SDG 8: Decent Work and Economic Growth

• Target 8.3: “Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises…” The entire article is a testament to this target, advocating for the support and recognition of small businesses, which are described as making up “more than 99% of all businesses in our state.”

Under SDG 11: Sustainable Cities and Communities

• Target 11.a: “Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.” The article highlights the strengthening of local economic links by explaining that “every dollar spent at a small business creates another 50 cents in local activity.” This multiplier effect is a direct example of the positive economic links that this target aims to support within communities.

Under SDG 12: Responsible Consumption and Production

• Target 12.b: “Develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture and products.” While not about tourism, the principle of promoting local products is central. The “Small Business Saturday” initiative itself acts as a tool to encourage and promote consumption of products and services from local providers, such as “mom-and-pop shops, restaurants, boutiques, [and] independent retailers.”

3. Indicators Mentioned or Implied

Indicators for SDG 8

• Proportion of total businesses that are small businesses: The article explicitly states, “Small businesses make up more than 99% of all businesses in our state.”
• Share of employment by small businesses: The article provides a clear metric: small businesses “employ about 40% of our private-sector workforce.”

Indicators for SDG 11

• Local economic retention rate: A direct indicator is mentioned: “It’s estimated that 67 cents of every dollar spent at a small business stays in the local community.”
• Local economic multiplier effect: The article quantifies this by stating, “every dollar spent at a small business creates another 50 cents in local activity.”

Indicators for SDG 12

• Participation in local commerce initiatives: The article implies this indicator through its promotion of “Small Business Saturday.” The success of this day and the “Season of Small” could be measured by consumer participation and sales volume for local businesses, although no specific figures are provided in the text.

4. Summary Table of SDGs, Targets, and Indicators

Source: greenvilleadvocate.com