73% of the UK's SMEs are concerned that cautious consumer spending this Christmas will have a negative impact on their business, according to research conducted by Streamline [1], the UK's largest provider of card payment processing in the UK and Europe. 

The research, conducted at Fresh Business Thinking Live [2] and the Great British Business Show  [3]surveyed small business owners to find out what they expected from the Christmas period in terms of sales and their customers expectations. The results show that:

• 89% predict that difficulty managing their finances will be a major concern for shoppers in the holiday period
• 83% expect their customers will have to rely on credit cards for purchasing

Despite this expectation around card payment preference, less than half (48%) of those surveyed currently accept cards and 76% think that shoppers will be frustrated if they're not able to pay by this method. In order to meet this demand and start to compete in this sector, a fifth (20%) of those surveyed will look to start offering customers the ability to pay by card in the next six months.

Small business owners are also feeling increasingly pressured by their competitors coupled with it becoming increasingly challenging to capitalise on consumer spending, as demonstrated by the following findings:

• 77% of those surveyed predicting greater levels of competition this Christmas
• 86% of respondents predict that shoppers will go online to avoid crowds this festive season
• As a result, despite 42% of those surveyed not currently trading online, 32% are making plans to trade online in the future.

Jayadeep Nair, VP Small Business for Streamline comments: "Christmas is always seen as a profitable time of year but with recent reports of a double dip recession, it's no surprise that many small business owners have concerns about their customers' willingness to spend this holiday season. However, Christmas can still offer many opportunities, small businesses just need to adapt. Offering consumers preferred methods of payment, competitive pricing, increased promotional spend and a good atmosphere can all help to drive sales. Those business owners who are looking to expand their services next year, whether that is online or offering card payment facilities, are all moving in the right direction. To be successful small businesses must respond to customer demand."