Small and medium-sized businesses are considered the foundation of economies worldwide. If you’re a small business or you deal with small businesses, what influences them, impact on the way they do business and statistics that will set the course of their future are critical information you can’t ignore.
We’ll be looking at the very important small business sector and examine the latest developments. We’ll explore significant small business projections for 2019, compile small business statistics that matter, and see how the sector is faring in the areas of finance, the modern workplace, and technology especially with the widespread availability of cloud-hosted and web-based apps.
The figures gathered from studies and surveys can also serve as benchmarks upon which businesses can compare their performance. Most of all, statistics provide crucial insights into the sector or industry and its critical components. Use the information here as a guide to further improve your business and prepare it for the future.
Our research on the small business developments of 2019 starts with a general look at the sector – from the global perspective to the U.S. scene, which has one of the most robust small business sectors in the world. From these profiles and demographics, we’ll be able to better understand this most important engine of economic growth.
of business population
of global employment
of the GDP of developed countries
Source: International Federation of Accountants (IFAC)Designed by
The statistics presented are of the current situation. However, the small business sector is a dynamic one and things are changing fast. For instance, if the Middle Age group is lording it now, soon enough the Generation Z will take over. And before long, Millennials will be the majority of small business owners. What this means is that, if you deal with small businesses, you should be ready to deal with a generation that is tech-savvy and highly mobile. Another thing is the explosion in the number of startups across a variety of industries, not just in popular ones like retail and professional services but also in manufacturing and production, robotics, consultancy, media, and publishing. Startups in the IT sector will be as popular as ever with most going into app development and IT services.
Financial and tax management is a challenge for small businesses. Owners of startups and small businesses, operating with limited resources and staff, often have to do the accounting and tax preparation themselves aside from personally handling all other operational and administrative tasks. Financial struggle is real – 5 out of the top 10 reasons for small business failure involve money matters. Here are some of the reasons and requirements of small businesses when it comes to finances.
Sources: Small Business Trends & Business Daily NewsDesigned by
If small business failure is mostly blamed on poor financial management, the business and market situation also has much to do with it. In times of recession, small businesses take the brunt. But in favorable conditions, SMBs do make it. A study on small business optimism showed that the majority were happy because they made profits last year, and hope that they would do well again this year given the positive economic environment.
As recent as 2017, a study commissioned by Google found out that a high of 80% among small businesses were not digitally engaged. Some small business owners reasoned that digital tools are not effective or relevant to their business. In a span of just two years, that has changed with SMBs now depending on SaaS products and technology tools for business.
Source: SalesforceDesigned by
Today’s digital workplace and connected employees have gone beyond the four walls of the office and made it easier to communicate and collaborate. It has been reported that 63% or nearly two-thirds of companies currently have remote workers, aided in no small way by freelance platforms. The distributed workforce is becoming a trend for small businesses. In fact, 900 startups were looking to hire remote employees at the beginning of 2019. How do small businesses fare when it comes to the modern workplace and workforce?
outsource accounting to a CPA%
Source: Guidant FinancialDesigned by
The workplace isn’t what it used to be. Even the typical office has metamorphosed from cubicles into open working spaces. And even that space for collaboration has gone digital with real-time collaborative platforms that let you discuss projects with teammates halfway across the globe, unhindered by time and location. The 9 to 5 employee has been supplanted by employees who work at their most productive times using devices they are most comfortable with – their own. BYOD is on the rise. That spells savings for small businesses and convenience as well as productivity for employees.
The small business projections for 2019 are concentrated on the increasing use and adoption of technology especially cloud-hosted solutions to streamline business processes. The affordability, scalability, security and automation capabilities provided by SaaS products for the small business make for their compelling use. Also, small businesses are seen to be relying more on business intelligence tools and analytics software to get crucial insights from data generated every day from their operation.
What do the small business statistics for 2019 show us? It’s the clear fact that the small business sector is a force to be reckoned with. This is why B2B companies are tapping into this huge market. The small business sector is now emerging as the leading user of cloud services. And there are many reasons why cloud adoption is essential for the small business. These include the simplicity, security, and scalability that cloud services provide.
Seeing so many SaaS vendors offer products specifically for small businesses is but one indicator of how important and large this sector is. It is expanding phenomenally at a rate of 100 million startups opening each year around the world. Businesses will thus notice and provide services and products geared toward this sector that is a wellspring of opportunities and profits. Likewise, small businesses will look toward these cloud software and services to boost the efficiency and productivity of their operations at the least cost.
SaaS, which is now changing the way entrepreneurs do business online, is the key to small businesses getting that level playing field to compete with larger businesses. You as a small business owner have no reason not to ride the trend of technology and innovation to grow your business. As things stand, it’s the way forward.
FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions.