Views on
Government Influence
How Government Involvement is Perceived by Small Businesses
69% of SMBs anticipate revenue growth in 2017
50% SMBs think government does not do enough to support small business
14% businesses (size 5-10 employees) vs. 38% businesses (size 101-499 employees) think the government does enough for SMB
50% | No, government doesn't do enough
22% | Yes, government does enough
15% | Undecided
13% | I don't want the government involved
Half of all small business say the government is not doing enough to support them.
Impact of New President on Small Business Growth
32% | Neither positive or negative
31% | Positive
18% | Extremely positive
11% | Negative
8% | Extremely negative
In 2016, small business owners said their business will do better if a Republican won the presidency.
Views on
Growth and Economy
The Top Challenges Facing U.S. Small Businesses in 2017
Hiring New Employees (50%)
Increasing Profit (46%)
Employee Healthcare (44%)
Growing Revenue (39%)
Cash Flow (34%)
5-10 |
11-50 |
51-100 |
101-499 |
| Increasing profit (50%) |
Hiring new employees (49%) |
Employee healthcare (54%) |
Hiring new employees (56%) |
| Hiring new employees (48%) |
Increasing profit (47%) |
Hiring new employees (53%) |
Employee healthcare (51%) |
| Growing revenue (41%) |
Employee healthcare (44%) |
Increasing profit (40%) |
Increasing profit (39%) |
| Cash flow (38%) |
Growing revenue (42%) |
Growing revenue (33%) |
Growing revenue (34%) |
| Employee healthcare (37%) |
Cash flow (33%) |
Cash flow (33%) |
Cash flow (27%) |
Small business owners say hiring new employees and increasing profit will be their biggest challenges in 2017.
Confidence in the Economy Versus 12 Months Ago
Significantly Better
Slightly Better
No Change
Slightly Worse
Significantly Worse
Not Sure
Companies with larger workforces are more optimistic about the economy.
Revenue Expectations for 2017
38% of small businesses expect more than 5% increase in revenue; only 37% expected that in 2016.
Most small businesses (31%) expect a modest revenue growth of 1-4%.
Roughly 10% of all businesses, regardless of size, expect declining revenues.
69% | Expect revenue growth
15% | Expect flat revenue
10% | Expect decline
69% of small businesses expect an increase in revenue in 2017.
Strategies to Improve Revenue Growth
40%
Improve existing customer experience & retention
32%
Invest in new customer acquisition activities & methods
21%
Invest in training or tools to improve employee productivity
30%
Expand into new markets
36%
Launch new products / services
6%
Open new stores / sites / facilities
Small businesses say improving existing customer experience and retention is their top strategy for revenue growth.
Employee and Staffing Plans
More than half (52%) of SMBs are planning to hire in 2017. Of those hiring:
Hiring 1-2
Employees
28%
Hiring 3-5
Employees
29%
Hiring 6-10
Employees
22%
Hiring 11+
Employees
17%
Views on
Marketing
Revenue Invested in Marketing
Not Sure
0% Investment
1-3% Investment
4-6% Investment
7-10% Investment
11%+ Investment
54% of small businesses invest 4% or more of their revenue in marketing, while roughly 1 in 10 does not invest.
The Top 10 Marketing Tools Used by Small Businesses
Internet Advertising (34%)
TV, Radio, and/or Print Ads (29%)
Tradeshows and/or Conferences (23%)
76% of companies involve their employees in marketing efforts.
42% of companies promote a specific profuct or service using social media.
36% of companies offer videos to watch on their website.
How Small Businesses Use Their Websites
28%
Of small business websites allow visitors to purchase goods or services
30%
Of small business websites allow visitors to apply for jobs
53%
Of small business websites allow visitors to reach sales or customer service
55%
Of small business websites have the company location, phone number and email addresses
65%
Of small business websites contain information about the company’s goods and services
Fast Facts About Small Business Digital Marketing
Use of LinkedIn and Instagram have increased. Twitter, YouTube, Pinterest and Facebook have decreased.
45% of small businesses use social media to sell to potential customers.
33% of small businesses use social media to gain likes and fans.
54% of small businesses outsource graphic design and website design.
32% of small businesses use social media to solicit or respond to customers' feedback.
37% of small businesses use designated business social media accounts to reach their audience.
Even with the increase in new social media tools, Facebook remains the most used social media platform for SMBs, but its use has decreased since 2016.
14% of small businesses outsource their marketing, public relations and advertising.
Only 77% of small businesses use social media to promote and grow their business.
Views on
Information Technology
How Businesses Manage Inventory and Assets
What Small Business Use for Inventory
2% | Other
8% | Don't track inventory
14% | Manual processes (pen & paper)
18% | Inventory software or system
15% | Inventory in accounting software (Quickbooks)
24% | Don't have inventory
21% | Spreadsheet program (Excel)
43% of small businesses do not track their inventory or use a manual process.
What Small Business Use for Assets
2% | Other
6% | Not sure
11% | Don't track assets
12% | Manual processes (pen & paper)
16% | Asset software or system
22% | Tracking in accounting software (Quickbooks)
32% | Spreadsheet program (Excel)
55% of small businesses do not track assets or use a manual process.
42% of small businesses plan to increase IT spending in 2017.
The top IT changes businesses implemented in 2016 were updating network security, upgrading networks and replacing computer hardware.
57% of larger small businesses (101-499 employees) use or plan to use Web-based or subscription-based software; only 38% of smaller businesses (5-10 employees) do.
Just 34% of small businesses prefer to purchase software from brick & mortar retailers. 46% prefer to purchase it online.
By the Numbers
Who Took the Survey
Methodology
1,102 Surveyed | All Own or Manage a Small Business | All Headquarterd in the U.S.
For the third year, Wasp Barcode Technologies conducted a survey to identify how small business owners felt about their growth, confidence in the economy, employment, technology use, marketing tactics, and government impact.
The State of Small Business Report research is based on a random online sample of 1,127 U.S. small business owners/managers with companies with five to 499 employees. The anonymous survey was conducted via the Internet by Survey Monkey from November 10-18, 2016. The survey has a margin of error of +/- 2.9 at the 95% level of confidence. Sikora Associates provided statistical analysis.
Respondent Breakdown by Product or Service Company
Company Size by Full-Time Employees
|
Responce Count (Percent)
|
| 1-4 full-time employees |
0 (0.0%) |
| 5-10 full-time employees |
377 (33.45%) |
| 11-50 full-time employees |
409 (36.29%) |
| 51-100 full-time employees |
169 (15%) |
| 101-200 full-time employees |
97 (8.61%) |
| 201-499 full-time employees |
75 (6.65%) |
Respondent Breakdown by Industry
Industries
|
Responce Count (Percent)
|
| Agriculture |
27 (2.4%) |
| Banking/Financial |
46 (4.08%) |
| Construction |
148 (13.13%) |
| Education |
49 (4.35%) |
| Energy (Oil, gas, electricity) |
10 (0.89%) |
| Healthcare |
109 (9.67%) |
| Hospitality/Entertainment |
59 (5.24%) |
| Information Technology |
71 (6.3%) |
| Manufacturing |
90 (7.99%) |
| Professional Services (Accounting, legal, consulting, etc.) |
136 (12.07%) |
| Repair/Installation Services |
39 (3.46%) |
| Retail |
106 (9.41%) |
| Warehousing, Logistics, Distribution |
52 (4.61%) |
| Other |
185 (16.42%) |
