PROVIDENCE, RI – In an effort to help boost Rhode Island’s economy, U.S. Senator Jack Reed is urging consumers to shop at their favorite local, independently owned businesses this coming Saturday as part of “Small Business Saturday.”  Today, Senator Reed met with local business owners and employees during a small businesses tour along Hope Street in Providence to help promote “Small Business Saturday.” 

Sandwiched between “Black Friday” (the day after Thanksgiving) and “Cyber Monday” (when online retailers typically offer deals) is “Small Business Saturday” – a day dedicated to supporting small businesses on one of the busiest shopping weekends of the year.

“Small businesses are vital to our communities and our economy and the goal of this event is to get more people shopping at locally owned businesses,” said Reed, who earlier this month helped pass a resolution designating November 26, 2011 as “Small Business Saturday.”  “Shopping at small businesses and supporting local companies can have a big impact on Rhode Island’s economy.”

During the tour Reed met with Asher Schofield, co-owner of Frog + Toad and the President of the Hope Street Merchants Association, and with folks from Seven Stars Bakery, Kreatelier, and Pippa’s Papers.

More than 100,000 businesses around the country are scheduled to participate in the 2011 “Small Business Saturday” post-Thanksgiving shopping initiative, and the “Small Business Saturday” Facebook page has nearly 2.4 million Facebook 'likes.'

According to American Express statistics, organizers of the movement say it helped boost same-day sales last year by 27 percent when compared to the Saturday after Thanksgiving in 2009.

“This is the biggest holiday shopping weekend of the year and Rhode Islanders have an opportunity to support their favorite local stores and help our economy grow.  When you shop local, it has a ripple effect through our economy,” said Reed, citing a Chicago study of Retail Economics which found that spending $100 at a locally owned store produces $68 in additional local economic impact, while doing the same at a chain store produces $43 in local impact.

According to the U.S. Small Business Administration (SBA), small businesses have generated two out of every three net new jobs over the past 15 years and employ over half of all private sector employees.

Senator Reed is a cosponsor of the bipartisan Marketplace Fairness Act, which would help Rhode Island businesses compete with big online retailers.  The bipartisan bill closes the Internet tax loophole and gives states the ability to enforce existing sales and use tax laws.  Passing the bill could save jobs in Rhode Island and help the state generate an additional $70 million annually in revenue.