The government is urging people to support local traders by shopping in their communities on Small Business Saturday. The annual event, taking place on 6 December, celebrates the UK’s 5.7 million small firms, which ministers say are central to the country’s economic growth.

Small businesses account for 60% of the UK’s workforce and generate £2.8 trillion in turnover. New data suggests that increased festive spending this year could provide a £5bn boost to the sector, with consumer spending expected to rise by almost a fifth compared with 2023.

The call comes alongside the launch of a new “Backing Your Business” campaign, following the government’s Small Business Plan unveiled earlier this autumn. Ministers describe the plan as the most significant set of reforms on late payments in 25 years, aimed at helping sole traders, start-ups, family firms and high-street retailers access timely payments and wider support.

Business Secretary Peter Kyle said the UK is home to “some of the brightest entrepreneurs in the world,” adding that Small Business Saturday offers an opportunity to support local shops and services.

In the run-up to the event, ministers have visited businesses including an animation studio in Stoke, a Glasgow sweet shop and an independent dog-grooming service in London.

Michelle Ovens, Director of Small Business Saturday UK, said small firms remain “essential” to both communities and the wider economy, noting research suggesting strong public support for local businesses.

Government figures suggest that if small firms were to grow by one percentage point a year, it could add £320bn to the UK economy by 2030.