Make or break: Struggling small firms hope holiday season will bring vital boost
As small businesses power through the economic headwinds of the year and look towards a more positive 2024, the holiday season might just be what makes or breaks it for some.
Laura Timm, the Federation of Small Businesses London policy chair, referred to the next few months as the “golden quarter” for small businesses looking to ramp up trade during the festive season.
“We urge customers to ‘think small first’ when they spend their hard earned cash. FSB is keen to see Councils implement policies that will support their small traders, in particular through relaxing parking restrictions on weekends where appropriate,” she said.
According to a survey shared with Morning Wire on behalf of American Express and Small Business Saturday, 86 per cent of small businesses said this season was a “vital revenue driver” for their business
“Mediocre sales” have hurt small firms due to inconsistent footfall and and rising costs, Michelle Ovens, director of Small Business Saturday, said.
“There is speculation that cash-strapped consumers have held back spend, leading to a difficult few months, because they are saving for the festive season,” she added. “We need that to materialise for all small businesses to ensure they have the best chance of weathering the current storms into a hopefully more positive 2024.”
Emma Jones, founder of Enterprise Nation, agreed that securing those festive sales would be crucial as small firms battle a myriad of issues.
“So many business founders are burning the candle at both ends to meet seasonal demands at this time, juggling staffing issues, unpredictable postal services and chasing every sale where possible while making plans for the new year,” she said.
The pressure to secure strong sales during the upcoming period comes as new data shows business confidence remains unchanged ahead of the holiday season, according to recent figures in BDO’s Optimism Index.
BDO’s Optimism Index in October fell by just 0.04 points to 99.75, but is up 5.12 points compared to this time last year.
Kaley Crossthwaite, partner at BDO, said: “It’s encouraging to see businesses more optimistic in the lead up to Christmas compared to this time last year, reflecting the resilience we’re continuing to hear and see from the services sector in particular.
“However, businesses aren’t out of the woods yet. With output stagnating, employment falling and optimism remaining below the 100-point mark that shows long-term growth, the run-up to 2024 will be a crucial period for UK businesses.”