Small firms embracing the season of goodwill

It may be a time of economic uncertainty, but that won’t stop small businesses from splashing out on gifts and parties, research has shown.

On the contrary, research by Alliance & Leicester Commercial Bank has revealed that small businesses plan to spend generously on festivities and presents for both staff and customers.

The study found that small businesses will spend an average of an extra £430 to cover additional Christmas costs, with those in the capital set to spend an average of £716 extra.

For instance, almost a third of small businesses will be spending extra cash on shutting down for Chritsmas, almost a quarter will shell out for client gifts and more than 20% will pay for a party.

Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank, said: “It is clear from our research that, on the whole, small businesses are still prepared to spend extra cash on celebrating Christmas, despite being burdened with economic uncertainties.”

“This is really positive news and shows that [small firms] recognise the importance of building long term customer relationships and rewarding their employees for their contribution over the last 12 months.”

However, the research revealed that a staggering 65% of business owners had not set aside a festive budget, nearly a third of whom will either be footing the bill personally or delving into company profits.

© Crimson Business Ltd. 2007