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With the holiday season right around the corner, small business owners around the nation are anticipating an increase in profits and better prospects for 2016. The American Express OPEN Holiday Growth Pulse says that 92 percent of small business owners are expecting holiday sales to match or beat those of 2014.
The OPEN Holiday Growth Pulse surveyed 1,000 small businesses that make $250,000 or more annually and employ less than 100 people. The results show that 54 percent of retailers are banking on a better holiday season that can lead to a better new year.
It is encouraging to see that 79 percent of small businesses prioritize the growth of their business; this number is up from 72 percent in August. About 24 percent of the retailers are worried about maintaining inventory levels, while 21 percent are concerned about offering heavy discounts during the season.
On a more positive note, 53 percent of small business owners claim that they will be hosting holiday parties for their employees, while 42 percent will be giving out gifts. More than two-thirds of small businesses also plan to gift their clients and customers as a token of appreciation for their business. The study shows that a small business will spend approximately $5,370 on these gifts.
Of the 53 percent hosting parties, 69 percent plan to spend the same amount of money that they spent last year, $2,100 and 22 percent might spend more than they did in 2014. Only nine percent said that they will be spending lesser than before.
Apart from holiday parties and gifts, 50 percent of small-businesses are hoping to give holiday bonuses to their employees. Twenty-two percent of business owners plan to give bigger bonuses, between five and 15 percent of the salary, 22 percent are not providing bonuses and five percent plan to offer more than 15 percent of the salary.
The comprehensive survey also shows that women-owned businesses top the list of small businesses that plan to reward their employees; this could be because the holiday season makes up 21 percent of the annual sales for women-owned businesses. The results also confirm that 56 percent of women-owned businesses will offer employee bonuses versus 43 percent of men-owned businesses, and 57 percent of women-owned businesses will host holiday parties in comparison to 50 percent of their male counterparts. NAWRB would like to remind you that Saturday, November 28th is Small Business Saturday. Take the opportunity to patronize a small business in your neighborhood and make the holidays special for them too.