Households could spend more than £20 billion during the festive season in the UK this year, as small businesses prepare to allocate a fifth of Christmas spending, equivalent to approximately £4.4 billion.
New data from the Small Business Saturday campaign found that the holiday season could provide a critical boost to the country’s 5.5 million small businesses as they face prolonged economic hardship. On average, UK households will spend £757 on seasonal celebrations with at least a quarter expecting to spend more, with 22% of this potential festive budget going to small businesses.
As the critical holiday season begins with Black Friday and Cyber Monday, the Small Business Saturday campaign (taking place a week later on December 7, supported by major sponsor American Express), makes a calling on the public to support and celebrate small businesses. companies to guarantee their survival.
Small Business Saturday’s research also found that women predominantly control holiday spending, with 60% in charge of their family budget. And more than a quarter (26%) of consumers also intend to spend more at Christmas this year.
Encouragingly, public support for small businesses is already increasing: four in five people (86%) think it is important to support small businesses and two-thirds (66%) spend on goods or services with small businesses several times a year. month.
“Public support is absolutely vital for small businesses across the UK, with many still struggling to recover from the cost of living crisis and cope with ongoing challenges such as high costs and stagnant growth,” says Michelle Ovens CBE. , director of Small Business Saturday. United Kingdom.
“With a significant holiday spending fund at stake this year, there are great opportunities for small businesses. And it’s really encouraging to see such positive public sentiment. “We need this to continue as it will really make a difference in helping small businesses across the UK stay in business and continue to deliver their incredible value to our economy, society and local communities.”
Small Business Saturday arrived in the UK in 2013 and is backed by its main sponsor, American Express, which founded the campaign in the US in 2010. During its time running in the UK, the campaign has experienced a growth in public support for small businesses with billions of pounds spent on small businesses on Small Business Saturday.
Emily Beckloff, founder of International Elf Service, which makes festive cards and stories for children, said: “Most of our business is done before Christmas, when nine months of hard work pays off. Although we publish stories year-round, our Christmas letters, North Pole Star newspapers, and holiday stockings are our primary products.
“Before Black Friday we have to work harder to compete with larger companies, so the support of our customers and collaborations with other small businesses are vital to our survival. Ultimately, the most important thing for us is to continue our mission of sparking children’s imaginations, becoming a part of family traditions and bringing a little magic to everyone.”
On Small Business Saturday, customers across the UK come out and support all types of small businesses, both online and in-store; from independent shops and restaurants to small service and b2b businesses such as accountants, plumbers and digital marketers. Many small businesses are participating in the campaign by hosting events, offering promotions, and collaborating with other local businesses.
Dan Edelman, managing director of UK merchant services at American Express, said: “With the festive period quickly approaching, it is encouraging that public support for small businesses remains strong.
“Small Business Saturday is a campaign that remains as important now as when it started. That’s why American Express is proud to champion the country’s most beloved independent businesses as its biggest supporters, encouraging the nation to shop small.”