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The Back-to-School Squeeze: Why This Is a Critical Moment to Support Small Businesses

August 24, 2026 By Madelyn Houser Webb

If you work in economic development, you probably know this stretch of the calendar well.

It is back-to-school season. Families are buying school supplies, replacing shoes, outfitting dorm rooms and trying to figure out how a child who was wearing last year’s jeans in May somehow needs an entirely new wardrobe in August.

At the same time, retailers are already looking ahead to the holidays.

That creates an interesting window for small businesses.

They are preparing for one of their busiest selling periods of the year while many are also dealing with one of the busiest periods in their personal lives.

For small business owners who are parents, August can mean school registrations, sports schedules, college move-ins, childcare changes and a calendar that suddenly has approximately 47 more appointments on it.

The businesses they run do not stop needing attention.

That is where economic development organizations can make a meaningful difference.

Small Business Owners Are Consumers, Too

We often talk about supporting small businesses as though business owners exist outside the consumer economy.

They do not.

Small business owners are shopping for backpacks and laptops. They are buying dorm supplies. They are paying tuition bills. They are purchasing groceries, clothing, school activity fees and everything else that comes with getting a family ready for another school year.

For many owners, particularly those balancing a business with family responsibilities, the next few weeks can be financially and personally demanding.

Meanwhile, their businesses are entering an important retail window.

According to the National Retail Federation, U.S. families with K-12 students are expected to spend a record $43.3 billion on back-to-school purchases in 2026. College students and their families are expected to spend another $103.5 billion.

That is a significant amount of consumer spending moving through the economy.

The question for communities is simple:

How much of that spending can we help direct toward the businesses in our own communities?

The Holiday Season Starts Earlier Than You Think

Back-to-school may feel like the end of summer.

For retailers, it is often the beginning of the holiday planning cycle.

Businesses are thinking about inventory, promotions, giftable products, photography, email campaigns, staffing and how they are going to compete for attention when consumers are bombarded with offers later in the year.

The holiday opportunity is enormous. In 2025, the National Retail Federation projected more than $1 trillion in U.S. holiday retail sales for November and December.

Small businesses do not necessarily need more things to do.

They need more leverage.

That distinction matters for organizations responsible for supporting local economies.

What Economic Development Organizations Can Do Right Now

Supporting small businesses does not always require another grant program, workshop or lengthy initiative.

Sometimes, the most valuable thing you can provide is infrastructure that makes it easier for businesses to be discovered and purchased.

Here are several practical ways to help during this particularly busy stretch of the year.

1. Make It Easier for Residents to Find Local Businesses

Consumers cannot shop locally if they do not know where to shop.

A centralized online marketplace gives residents one place to discover businesses, products and services across a community.

Instead of asking shoppers to remember which local business sells candles, which one carries children’s clothing and which one makes locally produced gifts, you create a destination that brings those businesses together.

That is especially valuable during high-intent shopping seasons.

2. Give Small Businesses a Digital Sales Channel

Having a website is not the same as having a strong e-commerce presence.

Many small businesses have beautiful websites and active social media accounts but still lack an easy way to turn discovery into a transaction.

3. Build Campaigns Around How People Actually Shop

Back-to-school shoppers are already demonstrating how consumers behave.

NRF reports that 62% of back-to-school shoppers had started shopping by early July in 2026, while many others were spreading purchases out or waiting for promotions or the holidays.

That creates opportunities for campaigns throughout the season.

Think:

  • Back-to-school essentials from local businesses
  • Shop local for college move-in
  • Local gifts for teachers
  • Small business fall favorites
  • Made-here holiday gifts
  • Local Black Friday and Small Business Saturday collections
  • “One community, one shopping list” campaigns

A coordinated destination and a clear reason to visit can go a long way.

4. Help Businesses Prepare Before the Holiday Rush

By the time November arrives, it is too late to start thinking about holiday visibility.

Economic development organizations can use September and October to help businesses get positioned.

Encourage them to:

  • Add or update products online
  • Photograph their best sellers
  • Create giftable collections
  • Review their product descriptions
  • Identify holiday promotions
  • Build email lists
  • Prepare social content
  • Make sure customers know they can shop them online

This is one area where a marketplace can become more than a storefront.

It can become part of the community’s retail infrastructure.

Think Beyond the Business Owner’s To-Do List

There is another reason this matters.

Economic development organizations are often asked to help small businesses “do more.”

More marketing.

More social media.

More events.

More workshops.

More digital training.

More networking.

But small business owners are already doing a lot.

At this time of year, many are doing it while simultaneously managing the same family responsibilities as the consumers they are trying to reach.

The better question may be:

What can we build that makes supporting local businesses easier for both sides of the transaction?

This Is Where a Community Marketplace Fits

At Member Marketplace Inc., we have seen this dynamic play out across communities and regions throughout the country.

Our marketplaces are designed around a simple idea: make it easier for communities to connect local businesses with local consumers.

A Member Connection Marketplace gives economic development organizations, chambers, Main Streets and other community-focused organizations a way to create that connection in one centralized online destination.

It can give local businesses greater visibility.

It can give shoppers an easier way to discover what is available locally.

And it gives the organization supporting those businesses a digital asset that can be used for campaigns, promotions, seasonal shopping and year-round community engagement.

 

If your organization is looking for a practical way to strengthen local retail, support small businesses and create a stronger connection between consumers and the businesses in your community, let’s talk.

Learn how a Member Connection Marketplace could work for your organization.

Explore Member Marketplace Inc. and tell us what you’re looking to build →

The best time to help local businesses prepare for the holiday season is now.

Filed Under: Blog, Trending Products

Madelyn Houser Webb

About Madelyn Houser Webb

Marketing Content Manager

Madelyn has worked in sales and marketing throughout her career. She has a passion for all things social media, marketing, and content. She leads in creating, executing, and analyzing digital marketing campaigns as well as managing social media channels.

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