The holiday season might not be as reliable as it once was for small businesses, new research suggests, but optimism seems to persevere within the City as peak trading season approaches.
While 61 per cent of small businesses, surveyed on behalf of American Express, have said the festive season has yet to be the same since the pandemic hit, the numbers haven’t put a dampener on future outlook quite yet.
Ahead of Small Business Saturday tomorrow, a campaign to encourage small business engagement, city officials and businesses across the UK have come together to celebrate the importance of spending local this year.
The Mayor of London, Sadiq Khan, said he hopes to see small businesses “thrive” this weekend.
“Small Business Saturday is a great initiative that celebrates smaller local businesses and the essential role they play in our communities,” he added.
“Small businesses are vital to London’s economy and we need to support them as they navigate the ongoing challenges of the cost of living crisis.”
While 74 per cent of small businesses this year believe it to be “increasingly hard” to rely on Christmas trade due to the cost-of-living crisis, 86 per cent believe the peak festive season is still crucial to their finances.
Small Business Minister Kevin Hollinrake said: “On this year’s Small Business Saturday, I urge everyone to join me in going out and supporting the small businesses that are the heart of our towns and cities as well as their local firms based online.
“Every local purchase this Christmas period is an investment in our local communities and the hard-working entrepreneurs that form the heart of the places we call home.”
Michelle Ovens CBE, director of Small Business Saturday UK, said the research shows how “uncertain” this time of year for small businesses is becoming.
“If we all make a conscious effort to support our favourite small businesses, we can collectively turn this situation around… Small businesses need us this winter, just as much as we need them,” Ovens added.