Small businesses expected to earn record $118 billion this holiday season

Intuit QuickBooks reports that small businesses are set to capture a record $118 billion during this holiday season, marking an 8.3% increase from the previous year, according to buffaloreflex.com.

Consumers are expected to spend $278 billion this holiday season, a 5.7% rise from last year’s estimated $263 billion, showing steady growth over the past three years despite earlier forecasts of spending pullback, the survey found.

Small business owners are optimistic, with 76% expecting to earn more this season than last, and on average, consumers plan to allocate 43% of their holiday budgets to small businesses, up from 41% in 2025 and 36% in 2024.

The survey also highlights generational differences in spending concerns: younger shoppers, including Gen Z and Millennials, express more worry about job security and rising costs affecting their holiday budgets compared to older generations, with some indicating they might cut into essentials to afford holiday spending.

Artificial intelligence is playing an increasing role in how consumers shop and how small business owners manage their operations during the holiday season, according to the survey.