AmEx's small business division conducted the survey and found that business owners are still feeling pinched cash-wise.

Last year, 44 per cent of those surveyed said employees would get an end-of-year bonus. This year, only 31 per cent did. Even fewer are planning raises: 16 per cent, compared with 30 per cent last year.

Meanwhile, in 2008, 46 per cent of owners or managers said employees would get holiday gifts. This year, it's 35 per cent.

The business owners or managers surveyed oversaw companies with fewer than 100 employees.

The survey also found that, of those still giving a present, 42 per cent said they'll give fewer or cheaper gifts to customers and employees.

The businesses are cutting back on employee compensation and presents before client gifts,because customer presents can be important marketing tools.

In the survey, nearly half the companies surveyed planned to give presents to customers, about the same as last year. Those surveyed said they would spend $455, on average, on the holiday presents. In 2008, small business owners planned to spend $457 - and in fall 2007, it was an average of $1,483.

In one bit of good news, the survey did show the number of workers who would be getting time off over the holidays remained the same as last year, at 47 per cent.