The percentage of business owners with holiday gift giving plans for clients and customers rose to 71% in 2005, up from 61% last fall and 41% in the fall of 2003 and 2002. The gift or gesture of choice for business owners to their clients and customers remains sending cards or calendars (49%), followed by gift certificates for retail or restaurants (26%), unique company branded or monogrammed items (23%), a fruit or food basket or donation to a charity on their client's behalf (both 18%) and flowers/plants and wine/liquor, tied at 10%. The least likely gift is either clothing/personal accessories or baked goods/candy and nuts, all tied at 2%.

Businesses in the North East are most likely to have holiday plans for clients or customers (78%) followed by the South and the West (both 71%) and the North Central states (66%).

“Many business owners see the end of the year as a time to thank customers for their business and acknowledge the hard work of their employees,” said Susan Sobbott, president, OPEN from American Express. “Despite an overall increase in budgets for gifts, it is important to recognize that there are many creative ways to say ‘Thanks for a wonderful year' without breaking the bank.”

According to the OPEN survey, holiday parties top the list of business owners' year-end plans for employees. In all, 57% of business owners are planning holiday fetes. In addition, 54% plan to give end-of-year bonuses, 50% plan to give gifts and 47% plan to give time off to reward hard-working staff. Sixteen percent plan to take part in a volunteer activity as a group.

Businesses in the West are most likely to have holiday plans for employees (80%), followed by the South (78%) and the North East and North Central states (both 75%).

Sobbott suggests the following tips for holiday gift giving and year-end bonuses for small business owners:

• Tie bonuses to goals. Bonuses should be non-subjective, measurable, and performance-oriented. So clearly align bonuses with company or staff goals. If you did not set goals with staff this year but still want to give bonuses, consider tying employee performance to recognized company goals.
   
• Acknowledge all staff. When allocating bonuses, don't forget the behind-the-scenes people who have helped craft the successful client presentations and made the travel arrangements possible. Try to include them in your bonus-giving plans.
   
• Give the gift of time. If you can't afford to give bonuses this year, give the next best thing – time. Extra time off during the holidays, or an opportunity to come in late one day a week, for example, demonstrate your appreciation of your staff.
   
• When giving gifts, promote products from other small businesses. Support the small business community by purchasing gifts from small businesses. New and emerging companies often offer unique gifts at affordable prices.
   
• One size doesn't fit all. It's easy to purchase gifts in bulk. But consider rewarding your best customers with special gifts such as dinner for two at an exclusive restaurant, or tickets to the theater or a sporting event.
   
• Consider charitable contributions. If your customer is involved in a specific cause or group, consider giving to that charity. Making donations on behalf of the people on your list can be a meaningful way to say thank you.

Survey Methodology
The OPEN from American Express Semi-Annual Monitor, released each spring and fall, is based on a nationally representative sample of 626 small business owners/managers of companies with fewer than 100 employees. The survey was conducted via telephone by International Communications Research (ICR) from August 8-August 19, 2005. The poll has a margin of error of +3.9%.

About OPEN from American Express
OPEN is the American Express team dedicated exclusively to the success of small business owners and their companies. The OPEN Team supports business owners with unparalleled service and delivers purchasing power, flexibility, control and rewards to help customers run their business. Specifically, business owner customers can leverage an enhanced set of products, tools, services and savings, including charge and credit cards, convenient access to working capital, robust online account management capabilities and savings on business services from an expanded lineup of partners. To obtain more information about OPEN, visit www.OPEN.com, or call 1-800-NOW-OPEN to apply for a card or loan. Terms and conditions apply.

American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, business services and international banking.