2025 Small Business Month Study

May is National Small Business Month and a new NerdWallet survey finds that most Americans (84%) say it’s important to them to support small businesses.

The survey of more than 2,000 U.S. adults, conducted online by The Harris Poll, asked consumers about the most important factors to them when deciding where to spend. We also asked about small-business shopping habits, and what’s keeping more consumers from patronizing small businesses. The results suggest that consumers are torn between competing desires — shopping small and getting the best price.

• Low prices are a top priority for many shoppers. The lowest price (62%), free online shipping (62%) and good customer service (61%) are among the most important factors Americans consider when deciding where to spend their money.

• Supporting small businesses may be gaining in popularity this year. The survey found that 35% of Americans are spending less money at major retailers and 23% are spending more money at small businesses this year than they did last year. While some of this move away from big businesses may be due to cutting back on buying in general, this could also suggest a shift to shopping small.

• Convenience, shipping costs are a barrier for some who would otherwise patronize small businesses. Around 2 in 5 Americans (41%) say they would shop at small businesses more often if it was more convenient to do so, and 36% say they’d shop at small businesses online more often if they offered free shipping.

“Many Americans want to support small businesses — but cost, shipping and convenience remain major obstacles,” says Randa Kriss, a NerdWallet expert on small business. “As consumers consider where to spend their money, there seems to be a tension between value-driven shopping and money-saving habits.”

While inflation has slowed considerably, overall consumer costs are still quite high compared with just a few years ago. So it’s likely no surprise that costs are a top shopping consideration for many. When asked which factors are among the most important when deciding where to spend their money, Americans say the lowest price (62%), free shipping (62%) and good customer service (61%), according to the survey.

Shopping at small businesses is often more expensive than buying from major retailers. Part of the reason is that bigger companies can more easily minimize overhead costs — spreading fixed expenses, like rent, across a higher volume of sales — compared with small businesses. They also have the advantage of economies of scale, giving them more negotiating power with suppliers because they order in large quantities. Still, many consumers want to shop smaller, and this doesn’t necessarily mean breaking the bank.

Supporting their local economy (30%) and company values that align with theirs (25%) were further down the list of importance than low prices, but many Americans value both getting the lowest price and “voting” with the dollars they spend.

When asked about the importance of certain factors when spending — not necessarily which are most important — the majority of Americans (91%) say it’s important to them to get the lowest price on goods and services. However, plenty of Americans (73%) also say it’s important for them to vote with their dollars — or buy from companies that align with their values. These two priorities may sometimes be at odds, since small businesses struggle to compete with major retailers when it comes to pricing.

It’s totally fair to keep the cost of goods and services as a top consideration when choosing where to spend. But when there’s more wiggle room in your budget, you can consider additional factors — you might opt to support more small businesses that align with your value system and/or offer exceptional customer service, whether locally or online.

“Shopping at a small business is usually more expensive than buying from a major retailer,” Kriss says. “If you have the money, however, choosing to shop small can benefit your community as a whole. Small independent businesses can return more than three times as much money to the local economy compared to chain stores.”

More than half of Americans (54%) say they shop at both small businesses and major retailers regularly, meaning at least once a month, according to the survey. But where consumers spend may be shifting. Over a third of Americans (35%) say they’re spending less money at major retailers and 23% are spending more money at small businesses this year, compared with last year.

For some, part of this shift away from large retailers could be ideological: Nearly 1 in 5 Americans (19%) say they’re actively refusing to shop at a major retailer due to rollbacks of diversity, equity and inclusion (DEI) programs.

More than a third of Americans (35%) want to shop at small businesses more, according to the survey. But switching entirely to shopping small may be cost prohibitive or otherwise unreasonable for the average consumer. Instead, try identifying one or two areas where you could reasonably make the switch. Here are a few ideas:

• Buying fruit from a local farmer’s market

• Hiring a neighborhood handyman to do household projects

• Shopping for books at an independent bookstore

• Buying holiday gifts from Etsy sellers

As it becomes financially or logistically feasible, you can choose to shift more spending to small businesses.

“You don’t have to completely overhaul your shopping tendencies to support local small businesses,” Kriss says. “By shopping small when you can — and being more aware of how and where you make your purchases — you can begin to make a difference in your community.”

Though nearly 1 in 5 Americans (18%) say they don’t often buy from small businesses because they’re more expensive than major retailers, a lack of convenience and free shipping may also be keeping some consumers from patronizing small businesses, according to the survey.

More than 2 in 5 Americans (41%) say they would shop at small businesses more often if it was more convenient to do so, and 36% say they’d shop at small businesses online more if said businesses offered free shipping.

More than 2 in 5 Americans (44%) say they will almost always choose a retailer that gives them free shipping over one that doesn’t. Many of the bigger retailers are able to offer free shipping for the same reasons they can offer lower prices — economies of scale and lower overhead costs. But customers who consider the trade-offs of free shipping may be better able to support small businesses and potentially even save money.

According to a 2024 FedEx survey, a whopping 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold. This means that while yes, these buyers may save on shipping costs, they’d also likely spend more overall than they otherwise would.

The next time you want to purchase something, consider the shipping cost as part of the overall price. Is that item still worth the expense? Free shipping — generally with a spending threshold — has become so ingrained that it can feel unfair to pay to have something shipped to your home, even though this is a very normal expense. By accepting this added cost as part of the deal when shopping online, you might find you’re spending less overall and you’re helping small businesses compete with the big guys.

This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from April 21-23, 2025, among 2,093 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].