Consumer spending made up 68% of US GDP (Gross Domestic Product) in the first quarter of 2024, according to the US Bureau of Economic Analysis, with small businesses accounting for just less than half of economic activity.

As part of Yahoo Finance's Small Business: Big Opportunities special this week, Citizens JMP Equity Research Analyst Nick Jones and BTIG Director Marvin Fong discuss the companies and platforms that small business owners are operating through, such as Etsy (ETSY), Fiverr International (FVRR), and eBay (EBAY).

While Jones calls Etsy "a pillar for small businesses" that easily enables budding entrepreneurs to open up a simple digital storefront, Fong notes that lower-income consumers are not prioritizing these kinds of online purchases in their budgets.

"We still view eBay for small businesses as a really powerful platform for them to get exposure. Whether it's in auto parts, whether it's in handbags, whether it's in trading cards, including Pokémon cards, things like that," Jones says. "But, kind of broadly, we're hearing consumer pressures and we're seeing it show up with kind of the likes of Temu and Sheehan, people looking for really steep discounts. they're showing up with kind of fast fashion and cheap technology that a lot of these SMBs (small and medium-sized businesses) can't really compete with."

Catch more of Yahoo Finance's special Small Business: Big Opportunities coverage this week, or watch this full episode of Catalysts.

This post was written by Luke Carberry Mogan.