As thoughts of holiday parties and corporate gift-giving cross the minds of small business owners, recent data reveals the trends of client gifts for the upcoming months. Fewer small business owners will thank their clients and customers with a gift this holiday season, according to the OPEN from American Express Small Business Monitor, a semi-annual survey of business owners. We’ll take a look at those results over the next installments of this series. Interestingly, those who do plan to give will be spending significantly more than last year, and are also more likely to recognize their staff and be growth-minded. "Guilty!" is what two-thirds of those surveyed (65%) say they would feel if they didn't show their appreciation to clients/customers and employees come the holidays - still, only 59% plan to buy client gifts this year, compared to 70% in 2006. Likewise, those small business owners who intend to thank their staff dropped to 70%, down from 77% last year, with merrymaking, gifts and time off taking the hardest hit. Ironically, while the number of small business owners spending on clients and customers fell this year, those who do plan to buy will be spending 28% more than in the previous two years ($1,483). And those who "don't know" how much they'll spend on clients also rose - from 15% last year to 26%. "According to the survey, while 64% of small business owners are positive about the future economy and growth, many agree that rising interest rates (43%) and the downturn in the housing market (35%) have had a negative effect on their business," said Alice Bredin, OPEN from American Express small business advisor. "Given this dichotomy, small business owners are spending carefully - and with growth in mind, which may help explain why those who intend to thank their clients with holiday gifts this year are allotting larger budgets." The number of small business owners spending less than $500 on holiday gifts for clients and customers dropped from last year (27% vs. 41%) while those spending $500 or more increased (46% from 36% in 2006). Strikingly, those in the highest spending category of $5,000+ doubled from last year to 8%. In the next part of this series, we’ll reveal findings as they relate to the mind set of small business owners who do plan to give client gifts. | 
