The Monitor reports that 47 percent of small businesses plan to give gifts to customers this holiday season, demonstrating only a slight decrease from last year when 52 percent gave customer presents.

Among the small business owners who plan on giving holiday gifts to clients, the majority (82 percent) believed the gifts were a good way to say thank you. Additionally, 25 percent of entrepreneurs feel holiday gifts will make them stand out from competition.

"Entrepreneurs understand the importance of showing appreciation for customers' business especially during tough economic times," says Alice Bredin, American Express OPEN business advisor.

Indeed, one-third of entrepreneurs (31 percent) say they are making personal sacrifices such as taking less pay in order to give gifts to customers and employees.

Their efforts may be well worth it; a recent report by the Guardian Life Index suggests motivated customer relations are key in small businesses' ability to draw consumer spending.