Fewer small business owners plan to give their employees holiday gifts or bonuses this year, although the percentage who plan on gifts to customers are roughly equivalent to last year, says American Express.

According to the American Express OPEN Small Business Holiday Monitor, an annual survey of small business owners, only 35 percent are giving employee gifts this year, compared to 46 percent who did so in 2008. American Express says that 31 percent have plans to give year-end bonuses (vs. 44 percent in 2008) and 16 percent will give raises (vs. 30 percent in 2008). Almost half of business owners (47 percent) will give employees time off over the holidays this year, although they are less inclined than last year to participate in a volunteer activity with their employees (19 percent in 2009 vs. 28 percent in 2008), according to the survey.

American Express reports that 47 percent of small businesses plan to give gifts to customers this holiday season compared to 52 percent last year, and their total customer gift budgets remain steady versus last year ($455 in 2009, $457 in 2008). The top reasons business owners will give gifts to clients, include: to say thank you (82 percent); to celebrate the season (38 percent); and to stand out from the competition (25 percent).