"State of the Union'' Study
for Small/Midsize Business
December 6, 2005
Small and mid-size
businesses (SMBs) are facing the future with tremendous optimism and
increased confidence in the power of online marketing, according to a
new survey released today by AllBusiness.com.
The "SMB State of the
Union" study was conducted by market research firm Frank N. Magid
Associates on behalf of AllBusiness.com and included responses from over
1,000 small and midsize business leaders across the country. According
to the Small Business Association, small businesses represent 99.7% of
all employers, currently employ half of the private workforce (50.1%)
and provide approximately 75% of the new jobs added to the economy.
Optimism Abounds
An overwhelming majority of SMB leaders (79%) expect business to be
better in the next six months than the same period last year. More than
half (54%) of participants plan to add staff and eighty percent plan to
invest in technology for their business.
"Despite recently rising oil costs and the uncertain direction of
housing and consumer confidence, the SMB outlook is tremendously
positive," says Peter Horan, CEO of AllBusiness.com. "More and more SMBs
are hiring, expanding space and investing in technology."
"Considering today's
fluctuating business climate, we were pleased to find such optimism from
SMB leaders," said Jodi Gusek, Magid VP of research and study author.
"Survey participants identified far more opportunities than obstacles to
business growth in the coming months."
Internet is
Springboard for Growth
The survey also shows that SMBs point to the Internet as a primary
driver of growth and eighty-three percent strongly agree that the
Internet helps them run their companies. The World Wide Web has not only
enhanced the channels of communication, but also opened up new markets
for business.
New Net
Frontier...Online Marketing
Already close to one quarter (22%) of SMBs make use of the Web as a
marketing tool using email marketing (62%); search engine optimization
(56%); banner advertising (36%); and pay-per-click advertising (25%).
Among these SMB net marketers, 74% plan to increase their investments in
online marketing over the next six months and their peers seem to
recognize the benefits they are receiving as an additional 43% percent
of SMBs intend to begin online marketing within the next six months.
"The small business
marketplace is gaining ground in online sophistication," adds Horan. "SMBs
are increasingly coming to the realization that there is an inextricable
link between online marketing efforts and future success. SMB leaders
planning decreases in online activity are virtually non-existent."
AllBusiness.com also
announced the launch of its SMB Barometer - an index-based metric that
forecasts the expected growth of SMBs for the next six months. The
numerical figure provided by the barometer will reflect the combined
values of five components, including SMB staffing plans, business real
estate trends, business branch plans, technology investment and overall
business outlook. The first SMB barometer will be available in early
2006.
About The "SMB State
of the Union" Study
Frank N. Magid Associates prepared the "SMB State of the Union Study"
for AllBusiness.com surveying a national sample of 1,060 for-profit
small and midsize business leaders from September 12 through October 11,
2005. The survey included 457 participants who were externally selected
and 603 who were from an AllBusiness.com registered user list.
Participants were 18 years or older and were either owner, partner,
president, CEO, COO or vice president at companies with no more than 499
employees.
Source:
Copyright Business Wire 2005
