Table of Contents
For small business owners, being small or locally operated may offer more than a defining characteristic. The small business advantage can also play a meaningful role in attracting customers.
According to a Small Business Expo Research Team survey of 1,983 respondents, 79.6% say being a small or local business helps them win customers, including more than one-third who say it helps a great deal.
The findings also reveal a connection between this advantage and perceived customer appreciation for small businesses, which a majority of respondents believe has increased in recent years.
Highlights
- 79.6% say being a small or local business helps them win customers at least somewhat.
- 60.3% believe customers value buying from small businesses more than they did a few years ago.
- 79.8% of respondents who benefit greatly from being small also report increased customer appreciation, compared with 25.4% of those who see no competitive benefit.
Most Owners See a Small Business Advantage
When asked how much being a small or local business helps them win customers, 35.7% of respondents said “a great deal,” while another 43.9% answered “somewhat.”
Together, nearly four in five respondents view their small-business identity as an advantage in attracting customers.
This aligns with recent consumer research. Intuit QuickBooks’ 2026 Holiday Shopping Survey found that 89% of shoppers consider supporting small businesses important, while 35% plan to increase their spending at small businesses compared with last year.¹
Still, the small business advantage is not universal. Another 13.7% of respondents say being small helps very little, 6.2% say it does not help at all, and just 0.6% report that it actually hurts their business.
Customer Appreciation for Small Businesses Is Growing
The survey also asked whether customers value buying from small businesses more or less than they did a few years ago.
A combined 60.3% perceive increased appreciation, including 29.4% who say customers value buying small much more and 30.9% who say slightly more.
Meanwhile, 32.3% believe customer attitudes have remained about the same, while just 7.4% perceive a decline.
Respondents reporting increased appreciation outnumber those reporting decreased appreciation by approximately eight to one.
Other research points to similarly positive attitudes. American Express’s 2025 Shop Small Impact Study found that 76% of surveyed consumers consider small businesses essential to their communities, while 73% believe supporting them helps unite communities.²
Growing Appreciation Is Linked to a Stronger Competitive Advantage
Comparing responses to both questions reveals a notable relationship between perceived customer appreciation and the benefits of being small.
Among owners who say being small helps them win customers a great deal, 79.8% also report increased customer appreciation.
That share drops to 56.3% among those who say being small helps somewhat, 40.2% among those who say it helps very little, and 25.4% among those who report no benefit.
The Advantage Persists Even Without Changing Customer Attitudes
Growing appreciation is not a prerequisite for benefiting from being small.
Among respondents who believe customer attitudes have remained unchanged, 68.9% still say being small helps them win customers at least somewhat.
McKinsey’s 2025 State of the Consumer report offers additional context, finding that 47% of surveyed consumers across multiple countries consider locally owned companies important to their purchasing decisions.³
Final Takeaway
The survey highlights a largely positive perception of the small-business advantage. Most respondents say being small helps attract customers, and a majority believe customer appreciation is growing.
However, that advantage varies considerably. Owners who report the strongest benefits are also far more likely to perceive increased customer appreciation.
The findings suggest that being small or local remains a meaningful competitive advantage for many businesses, particularly those that perceive stronger customer support.
Footnotes
- Intuit QuickBooks. (2026). Small Business Holiday Shopping Survey 2026. https://quickbooks.intuit.com/r/small-business-data/holiday-shopping-survey/
-
American Express. (2025). 2025 American Express Shop Small Impact Study Results. https://www.americanexpress.com/en-us/newsroom/articles/shop-small/2025-american-express-shop-small-impact-study-results.html
-
McKinsey & Company. (2025). State of the Consumer 2025. https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/state-of-consumer-2025
Related: 84.5% of Small Business Owners Say Business Ownership Is Worth It, but Industries Differ