Positive changes for SMEs are occurring at a slow pace. However, experts predict that few indicators show a brighter future for the SMEs. Several trends that have emerged with time show that a tremendous growth path for the SMEs is being laid out.
Increased spending
There are around 29 million small businesses in the U.S. They form an integral and vital part in shaping the economy. More than 99% of the total employer firms in the country are the SMEs. They are responsible of creating more than 60% of all the new jobs. However, this industry is blown by tight credit markets, limited spending and slow sales.
But things are changing now. Small enterprises have started to spend more on technological solutions. As per a recent report given by Wells Fargo/Gallup Small Business Index survey, around 71% of small businesses are anticipating that their financial position will strengthen in a year. Besides, 25% of the companies also agreed that new employees will be expanding their teams.
Growing Performance Gap
It is also noticed that the performance gap is widening between the businesses that adopt modern technology and those which are reluctant towards it. The SMEs are making use of low cost, simple but impactful technological solutions to arrange their data in a systematic manner, become more efficient and lower the overheads. The widening performance gulf will create a strain on the businesses and will compel them to resort to technological solutions as much as possible.
Banks adopting innovations
These days, banks have started to lay focus on better consumer experience. They are adopting new solutions to enhance their connectivity with their customers. In the previous year, there was a boom of credit monitoring tools, personal investment services and spending trackers. Banking companies, these days, are in search of new innovative ways to apply financial technology for the market of SMEs.
The SME industry will greatly benefit from these solutions as they will find it simpler and safer to link real-time transaction data and third-party solutions such as QuickBooks, Xero and other applications. These new connections will give birth to quick decisions, wider opportunities and improved services for SMEs. As banks will apply new solutions along with their lending process, the SMEs associated with them will also adopt these greatly.
These latest trends clearly indicate that the small business sector is witnessing a lot of vital changes that will increase with time. The new opportunities will truly revitalize the way things are done in these businesses and thus expedite their growth process.
Smecorner 