Small bussiness could tap into a fifth of £20.4 billion this festive period – London Business News | Londonlovesbusiness.com

Over £20 billion could be spent by households across the festive season in the UK this year, as small businesses prepare to target a fifth of Christmas spend – equating to approximately up to £4.4 billion.

New data from the Small Business Saturday campaign found the festive season could deliver a critical boost for the nation’s 5.5 million small businesses as they tackle extended economic difficulties. On average UK households will spend £757 on seasonal celebrations with at least a quarter expecting to spend more, and 22% of this potential festive budget earmarked for small businesses.

As the critical ‘peak’ festive season kicks off with Black Friday and Cyber Monday, the Small Business Saturday campaign – which takes place a week later on 7 December with backing from principal supporter American Express – is calling on the public to support and celebrate small businesses to ensure their survival.

Small Business Saturday’s research also found women are predominately controlling the festive purse-strings, with 60% in charge of their household budget. And over a quarter (26%) of consumers also intend to spend more on Christmas this year.

Encouragingly public support for small businesses is already riding high with four in five people (86%) thinking it is important to support small businesses and two thirds (66%) spending on goods or services with small firms multiple times a month.

“Public support is absolutely vital for small businesses across the UK, with many still fighting to recover from the cost-of-living crisis and deal with continued challenges like high costs and flat growth,” says Michelle Ovens CBE, director of Small Business Saturday UK.

“With a major festive spending pot up for grabs this year, there is huge opportunity out there for small businesses. And it is really encouraging to see such positive public sentiment. We need this to continue as it really will make all the difference to helping small firms across the UK stay in business and keep delivering their incredible value across our economy, society and local communities.”

Small Business Saturday came to the UK in 2013 and is backed by principal supporter, American Express, which founded the campaign in the US in 2010. Over the time it has been running in the UK, the campaign has seen a growth in public support for small businesses with billions of pounds spent with small firms on Small Business Saturday.

Emily Beckloff, founder of International Elf Service – which crafts festive letters and stories for children said, “Most of our business is done in the lead up to Christmas, when nine months of hard work comes to fruition. Although we publish stories all-year-round, our Christmas letters, North Pole Star newspapers and festive stocking fillers are our lead products.

“Ahead of Black Friday we have to work extra hard to compete with the larger companies, so support from our customers and collaborations with other small businesses are vital to our survival. Ultimately, the most important thing to us is continuing our mission to spark children’s imaginations, become part of family traditions and deliver a little bit of magic to everyone.”

On Small Business Saturday customers across the UK go out and support all types of small businesses, both online and in bricks-and-mortar stores; from independent shops and restaurants to small service and b2b based businesses like accountants, plumbers and digital marketeers. Many small businesses get involved in the campaign by hosting events, offering promotions, and collaborating with other local businesses.

Dan Edelman, General Manager, UK Merchant Services at American Express, said: “With the festive period fast approaching, it’s heartening that public support for small businesses remains strong.

“Small Business Saturday is a campaign which remains as important now as when it first began. That’s why American Express is proud to champion the nation’s much-loved independent businesses as principal supporter, encouraging the nation to shop small.”