Small Business Saturday fell on 6 December 2025. The Department for Business and Trade is urging people to shop local, pointing to 5.7 million small firms that employ about 60% of the workforce and generate £2.8 trillion in turnover. Ministers say festive support could lift SME takings by around £5 billion, with spending forecast to be 19% higher than last year; separate research with American Express finds 95% think small firms add local value and 84% believe they need support.

Alongside the shopping push, the government has launched Backing Your Business, tied to its Small Business Plan and billed as the strongest late‑payment reforms in 25 years. The consultation on late payments has closed, with a formal response due in the new year. The package also highlights £4 billion of finance: £1 billion to deliver 69,000 Start‑Up Loans and a further £3 billion for the British Business Bank to widen access to lending through its ENABLE programme.

Business Secretary Peter Kyle framed the day as a chance to back high streets and the people who run them, with ministers visiting firms from Stoke’s Carse and Waterman animation studio to Glasgow’s Jeavons Toffee and London groomer Bow Wow to keep attention on everyday businesses powering local economies.

From a market perspective, the ask is simple: lift December footfall and receipts while easing January cashflow pressure. Many small firms post their best month now but face a quieter first quarter and tax deadlines. Measures that speed up payments or bring finance forward can determine whether owners hire in spring or cut back.

For owners, late payments aren’t an abstract problem - they’re a weekly scramble. Use the seasonal rush to tighten order‑to‑cash routines: agree deposits on larger jobs, issue invoices immediately on delivery, and set automated reminders that start before the due date. If you use early‑payment discounts, keep them clear and time‑limited so margins don’t drift.

Cashflow planning needs to extend beyond Boxing Day. Map expected dips in January and February, then rebuild the buffer: pause non‑essential capex, review insurance and utilities for quick savings, and align rotas to measured demand rather than hopeful forecasts. If you sell through marketplaces, check fee structures now so discounts don’t erase unit economics.

The finance pledges aim to fill gaps mainstream lenders often leave. Start‑Up Loans bring capital plus mentoring for younger firms; extra capacity at the British Business Bank should help accredited lenders support viable businesses with thinner files. Treat any new borrowing as working capital tied to receivables, not a patch for structural loss‑making.

For consumers, ‘shop local’ is more than a slogan - it changes cashflow timing. Paying a neighbourhood retailer or tradesperson settles quickly, funding wages and restock orders on nearby streets rather than disappearing into lengthy settlement cycles common on large platforms. Where possible, choose immediate settlement methods.

For policy watchers, the next marker is the government’s formal response to the late‑payments consultation. The meaningful test will be enforcement that changes behaviour - clear reporting, faster standard terms across supply chains, and credible consequences for chronic late payers - so the seasonal lift becomes durable confidence rather than a one‑weekend spike.

Small Business Saturday is one day; cash discipline is year‑round. If December delivers anything close to the uplift ministers expect, the opportunity is to convert it into repeat custom, faster payments and a cleaner balance sheet by March - a better base for investing in people, stock and growth.