The holiday season proves that bigger isn’t always better: Nearly half of seasonal gifts come from small businesses, according to new research.
A survey of 2,000 general population respondents found that on average, those surveyed purchase 44% of holiday gifts from small businesses — a third said they make more than 50% of their purchases from small businesses.
During the holiday season, twice as many people say they prefer to shop at small businesses instead of big box stores (34% vs. 17%), especially Gen X and millennials.
Seven in 10 shared the holidays would simply not happen without their favorite small establishments (72%).
Small Establishments Are Vital for the Holidays
Conducted by Talker Research in partnership with SurePayroll By Paychex ahead of Small Business Saturday, this sentiment emphasizes how vital Americans believe small businesses are to their community (84%).
Two in three respondents are regulars at small businesses around their neighborhood (64%), estimating that they’ve been frequenting their favorites for an average of eight years.
Regulars are on a first-name basis with six local business owners, and one in seven are social butterflies who have befriended at least 10 (15%).
Those surveyed are such big fans of their comfort stores that 64% would travel a further distance to shop at a small business they enjoy rather than shopping at a larger business closer to them.
Their loyalty goes the distance — nearly one-third would go 10 miles or more to shop at a small store rather than a chain store to get the quality (60%) and connection (48%) they prefer.
For many, holiday plans would be altered if the small grocery (46%) and retail stores (43%) near them closed.
The season wouldn’t be as merry if they weren’t able to visit their favorite small shops to purchase baked goods (48%), groceries (46%) and coffee (41%).
Besides food items, they also rely on small businesses for services (36%), gifts and presents (34%) and clothing (32%).
“It’s inspiring to see that Americans do nearly half their holiday shopping at small businesses,” said Ylang Nguyen, director of digital market strategy and product management. “It speaks volumes about the impact small businesses have in their communities when shoppers say the holidays wouldn’t be the same without their favorite local establishments. We’re proud to help small business owners ease their administrative load behind the scenes so they can focus on serving their customers.”
Generosity is on the rise during the holiday season. Two-thirds of Americans who tip reveal that they’re more likely to leave a larger tip during the holidays (67%) — with Gen Z (74%) and millennials (71%) leading the way.
On average, good tidings bring a 6% increase in tips (from 29% regularly to 35%).
Reasons for Higher Holiday Tipping
Those who festively tip more said it’s because the holidays are about giving more (62%) and because they empathize with how stressful their job can be during the holidays (57%).
Respondents can relate, since half of those surveyed have worked jobs that allowed them to accept tips (49%) — most commonly Gen Z (59%).
The biggest tips come on Christmas Eve (69%), Christmas Day (64%) and Thanksgiving (57%); just one in five tip better on Small Business Saturday.
“Small Business Saturday is more than a shopping event — it’s a reminder of the vital role local businesses play in our communities,” said Nguyen. “When consumers choose to shop small, they’re helping sustain the entrepreneurial spirit that drives Main Street year-round.”
Research methodology:
Talker Research surveyed 2,000 general population Americans who have access to the internet; the survey was commissioned by SurePayroll by Paychex and administered and conducted online by Talker Research between Oct. 2 and Oct. 6, 2025. A link to the questionnaire can be found here.
