We just surveyed over 800 SMBs in the U.S., U.K., Canada, Australia and New Zealand on global SMB business outlook and spending plans, which we’ll present in our next Fastcast at 1pmE on Thursday, July 15.
One of the early findings from this new research are the concerns that keep business owners up at night.
The biggest challenge? Finding new customers, regardless of business size. This is a perennial top priority, regardless of the state of the economy, and an ongoing opportunity for companies that provide marketing services to SMBs.
The second biggest challenge overall is coping with economic uncertainty, defined as “economic, political, public health, environmental or other ‘macro’ change outside of your control that can affect your business.” This concern speaks, of course, to the dramatic changes brought by the pandemic, which continue to affect so many businesses in so many ways. Providing advice to SMBs on managing through uncertainty can help you build engagement and trust.
Differences by business size
For very small businesses (VSBs, or companies with 1-19 employees), the next most pressing concerns are maintaining cash flow and retaining customers, followed by “keeping current on technology / keeping our technology current.” This last concern highlights the opportunity to provide technology education to these generally less technologically sophisticated business owners.
Small businesses (SBs, 20-99 employees) share the top two concerns with VSBs, but their third biggest challenge is “keeping our data secure,” making them an especially attractive segment for security solution providers. SBs’ fourth and fifth biggest challenges are managing costs and finding good employees.
The third and fourth biggest business challenges for mid-size businesses (MBs, 100-500 employees) are staffing-related: finding and retaining employees. This makes MBs an especially good target for job boards and benefits providers. The fifth-biggest MB business challenge is a tie: dealing with competition, complying with government and industry regulations, and cost or availability of supplies/materials.
It’s interesting that across the board, the bigger the company, the more challenging each business issue is rated. Larger SMBs are typically more resilient and optimistic than smaller ones, but MBs are clearly feeling a significant amount of business stress.
Top Ten SMB Challenges by Company Size
Business challenges by country
While differences between business sizes are more pronounced, there are also differences between SMBs by country. Finding new customers and coping with uncertainty are the top two challenges regardless of location. However for U.S. businesses, the next three biggest challenges are keeping current on technology, retaining customers and maintaining cash flow. Canadian SMBs are more challenged by dealing with competition, cash flow, and keeping current on customer preferences. U.K. SMBs are more challenged by cash flow, regulatory compliance, keeping current on tech and customer retention, while Australia/New Zealand SMBs are concerned with managing costs, cash flow, keeping current on tech and customer retention.
SMBs in Australia/New Zealand generally rate business concerns most challenging, while U.S. SMBs rate them least challenging.
Top Ten SMB Challenges by Country
Need help building your brand standing with SMBs? Bredin can keep you up to date on evolving SMB needs and challenges through quick-turn, actionable market research. We can also help you develop high-value content to boost SMB awareness, brand perception, leads, conversion and revenue.