Survey Shows Holiday Gift Habits of Small Businesses.

THE catalogs are arriving by the score and the decorations have already started appearing in the mall. Christmas must be approaching, and with it the gift-giving season.

Recently released survey results from American Express shine some light on

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The survey was conducted among small businesses with annual revenues in the $50,000 to $10 million range, and with fewer than 100 employees. The numbers reveal:

* A total of 38 percent of small businesses that responded to the survey are planning on holiday gift-buying this Christmas.

* Corporate gift-giving is viewed as providing both tangible and intangible results, including improved employee morale (84 percent), improved business (78 percent) and higher sales (56 percent).

* A significant number worry about ethical or legal issues inherent in corporate gift-giving (40 percent).

* Slightly more small-business owners will be purchasing gifts for their employees (58 percent) than for their clients (53 percent).

* E-commerce has a ways to go with small business. About half of survey respondents say they would not consider buying anything online. In fact, only 6 percent have ever bought holiday gifts via the Internet.

* Most small businesses will spend less than $5,000 in total on Christmas gifts (65 percent). A total of 36 percent said they plan to spend less than $50 per client/gift.

* When it comes to small-business spending on gifts for employees, 34 percent will spend under $100 while 30 percent will spend $100 to $499.

* The most popular client gift categories are food gifts, including liquor, wine, gift baskets, chocolate and fruit (36 percent); office supplies (11 percent); and money/gift certificates (9 percent).

* Many small businesses say they intend to take their clients to a holiday meal (45 percent), though a majority won't (52 percent).

While Christmas gift-giving is not a dead tradition, nor on life support, it's certainly showing degenerative symptoms. The corporate need to cut unessential expense is part of the cause. But, ironically, it is the client recipients who, more than anyone else, are driving a stake through the heart of the tradition.