tbj 2018 smb insights presentation 6 4 18 · ☆16thannualsurvey ☆nationallyrepresentative...

CAUTIOUS(OPTIMISM

☆ 16th Annual*Survey

☆ Nationally*representative

☆ 1,058*completed*surveys

☆ Business*owners,*executives*and*key*decision*makers*

☆ Businesses*with*5@499*employees

☆ Phone*recruit*@ online*survey

☆ January*2018

Note:*U.S.*Census*Bureau*data*and*other*external*research*are*also*used*in*parts*of*this*report.*

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THE BUSINESSJOURNALSA DIVISION OF ACBJ

1 SMB$Market$Size$and$Outlook

2 SMB$Owners$and$Their$Concerns

3 Technology$Usage$and$Attitudes

4 Media$Usage$and$Preference

2018'SMB'Key'Insight'Areas

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MARKET'SIZE'AND'GENERAL'OUTLOOK


The$SMB$market$continues$to$grow

5Source:)Small)Business)Research)Center,)based)on)Census)and)Bureau)of)Labor)Statistics)data

3,381,125

3,422,130

3,464,503

3,540,322

3,582,517

3,627,559

2013 2014 2015 2016 2017 2018

Number$of$U.S.$Businesses$with$5;499$Employees

5


Growth'of'SMBs'has'been'spread'across'the'coasts'and'south'over'the'last'five'years

6Source:)Small)Business)Research)Center,)based)on)Census)and)Bureau)of)Labor)Statistics)data:)Growth)in)number)of)SMBs)with)5>499)employees)from)2013)to)2018

10% - 15% growth5% – 9.9% growth0.1% – 4.9% growth-0.1% - -4% growth

Washington

Oregon

Montana

California

Arizona

Wyoming

Nevada

Idaho

Utah

Colorado

NewMexico

Texas

Oklahoma

NorthDakota

SouthDakota

Nebraska

Kansas

Louisiana

Arkansas

Missouri

Iowa

Minnesota

Wisconsin

IllinoisIndiana

Michigan

Ohio

Kentucky

Tennessee

Florida

MississippiAlabama

Georgia

SouthCarolina

NorthCarolina

Virginia

WestVirginia

Pennsylvania

Maryland

NewYork

Maine

Alaska

Hawaii

Delaware

NewJersey

Vermont

NewHampshire

Massachusetts

Connecticut RhodeIsland

6


SMBs%continue%to%have%a%positive%outlook

7“How&do&you&think&your&company’s&prospects&will&change&over&the&next&12&months?&By&prospects,&we&mean&the&general&success&of&your&business.”&(2008G2013)&“What&is&your&level&of&confidence&in&the&success&of&your&company&(based&on&revenue,&profitability&and&growth)&over&the&next&24&months?”&(2014G2018)

Positive%Outlook%About%Future%Business%Prospects

77% 76%73% 73%

81% 79% 80% 80%

Dec&10 Dec&11 Dec&12 Jan&14 Jan&15 Jan&16 Jan&17 Jan&18

7


SMB$owners$also$have$confidence$in$the$future$of$the$U.S.$economy

8

Confidence$the$U.S.$Economy$Will$Improve$Over$the$Next$24$Months

26% 24% 28%

19% 24%26%

8%13%

15%

2016 2017 2018

61%

53%

Extremely4Confident

Very4Confident

Confident

69%

“What4is4your4level4of4confidence4in4the4success4of4the4US4economy4over4the4next4244months?”


SMB$confidence$comes$from$seeing$continued$growth$in$both$their$company$sales$and$their$personal$net$worth

9

27%30%

35% 36% 37% 40%

2013 2014 2015 2016 2017 2018

“What1would1you1estimate1your1company’s1average,1annual1percentage1sales1growth1rate1has1been1over1the1last1three1years,1that is on1a1per1year1basis,1from120151through12017?”11“Which1of1the1following1best1describes1your1total1net1worth?”

591%65%

71% 70% 71% 73%

2013 2014 2015 2016 2017 2018

Net$Worth$Over$$1$MillionSales$Increase


SMB$OWNERS$AND$THEIR$CONCERNS


SMB$owners$are$highly$educated$and$upscale

Upscale$175K-average-HHI

Mid650s54-Average-Age

Educated70%-college-grads+

Men68%

$7.9MAverage-annual-sales

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Local&sales&are&the&core&market&for&most&SMBs

“Using'100'percentage'points,'how'would'you'break'down'your'company’s'sales'among'the'following'three'geographic'categories?”

Company&Sales&By&Geography

28%

60%

92%

Outside'the'U.S.

Rest'of'the'U.S.

Within'Local'Area

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Concerns(regarding(employees(and(customers(are(top(of(mind(for(SMB(owners

46%

63%

40%

41%

44%

44%

49%

64%

45%

46%

50%

51%

Rising.costs.of.doing.business

Cost.of.health.insurance/benefits

Possible.tax.changes.that.could.hurt.business

Maintaining.existing.customer.base

Being.able.to.attract.new.customers

Being.able.to.find.&.keep.good.employees

2018 2017

%"Very"Concerned

Business(Concerns

Concern"Has"Increased"Significantly"From"Last"Year

Concern"Has"Held"Steady"From"Last"Year

13“What.are.the.issues.that.you’re.most.concerned.about?..Please.indicate.your.level.of.concern.for.each.of.the.following.areas as they.relate.to.your.business.””


Owners'of'smaller'SMBs'have'a'greater'concern'about'finding'and'keeping'good'employees

“Very'Concerned”'About'Being'Able'To'Find'And'Keep'Good'Employees

“What&are&the&issues&that&you’re&most&concerned&about?&&Please&indicate&your&level&of&concern&for&each&of&the&following&areas as they&relate&to&your&business.”

Number&of&Employees

14

50%47%

49%53%

43%

48%44%

42%

53% 53%

36%33%

&5K19 &20K49 &50K99 &100K499

201620172018


TECHNOLOGY*USAGE*AND*ATTITUDES


Technology*is*a*critical*and*growing*part*of*business*expansion

16“Thinking*about*your*company*website,*how*much*do*you*agree*or*disagree*with*the*following*statements.”

Company*Website*Design*and*Usage

30%

48%

80%

Our*company*website*is*eDcommerce*enabled

We*use*data*from*our*company*website*toanalyze*customer*trends*and**inform*our

business*decisions

Company*website*is*designed*for*mobile,*aswell*as*desktop/laptop,*usage

%"Agree


But$technology$is$increasingly$seen$as$risky

“Very$Concerned”$About$The$Safety$And$Security$Of$Your$Firm's$Technology,$Email,$And$Documents

28%

38%

27%

47%

31%

45%

2017 2018

Total $25M+2in2Sales Generate2Revenue2From2Social2Media

“What2are2the2issues2that2you’re2most2concerned2about?22Please2indicate2your2level2of2concern2for2each2of2the2following2areas as they2relate2to2your2business.”” 17


SMBs%awareness%of%emerging%technology%is%speeding%up

18“Which(of(the(following(emerging(technologies(are(you(aware(of?”

Awareness%of%Emerging%Technologies

2017 2018 Change

Artificial(Intelligence 44% 56% +12

Virtual(Reality 53 63 +10

Robotics 49 57 +8

3D(Printing 65 72 +7

Biometrics 32 38 +6

Mobile(Solutions 46 51 +5

Internet(of(Things 25 28 +3

Chatbots 12 15 +3

Cryptocurrencies NA 47 QQ

Blockchain NA 16 QQ


MEDIA&USAGE&AND&PREFERENCE


Trust&in&journalism&rebounds&as&trust&in&platforms&declines

54%

52%

54%

51%

56%

54%

59%

53%

50%

53%

54%

54%

53%

51%

2012 2013 2014 2015 2016 2017 2018

Source:320183Edelman3GlobalTrust Barometer“When3looking3for3general3news3and3information,3how3much3would3you3trust3each3type3of3source?”3TopM43Box3of3nineMpoint3scale“Journalism”3is3the3professional3creation3of3news3content,3and3is3represented3by3traditional3media3and3onlineMonly3media.“Platforms”3is3how3the3content3is3delivered3or3discovered3and3is3represented3by3social3media3and3search3engines.

Journalism:Traditional3and3onlineMonly3news3sources

Platforms:Search3engines3and3social3media3platforms

Trust&Each&Source&For&General&News&&&InformationTopM43box3rating3in3a39Mpoint3scale

20


Local&news&sources&are&now&more&trusted

Source:(Pew(Research(Center's(American(Trends(Panel(Poll,(March(2017(and(January(2016

“How(much,(if(at(all,(do(you(trust(the(information(you(get(from...________HHa(lot,(some,(not(too(much,(or(not(at(all?”

Trust&The&Information&You&Get&From...

77% 77%74%

34%

85%

76% 74%

35%

Local(News

Organizations

Family,(Friends(&

Acquaintances

National(News

Organizations

Social(Media(Sites

2016

2017

21


Print&and&Digital&play&important&and&complementary&roles&

Preferences&For&Print&and&Digital&Media

“Thinking(specifically(about(business(news(and(information,(please(tell(us(about(your(preferences(for(electronic(versus(print media(by(indicating(how(much(you(agree(or(disagree(with(each(of(the(following(statements.”

79%

79%

83%

87%

92%

72%

77%

81%

Smartphone/Tablet(Save(Me(Time

Far(Easier(To(Access

Immediate(Access(to(Breaking(News

Skimming(&(Browsing

Wider(Array(of(Sources

Can(Take(In(More(Thoroughly

Allows(Far(More(Relaxed(Reading

More(For(Detail,(Specifics(&(Precision

Print

Digital

%"Agree

22


Print&and&Digital’s&complementary&strengths&are&preferred&by&different&audiences

“Thinking(specifically(about(business(news(and(information,(please(tell(us(about(your(preferences(for(electronic(versus(print media(by(indicating(how(much(you(agree(or(disagree(with(each(of(the(following(statements.”

Reasons&for&Preference&for&Print&&&Digital&Media(Agree(Completely/Mostly)

Total 100E499(Employees

$25M(+(in(Sales

Does(Business(Internationally

In(Business(10(Years(or(Less

Under(40(Years(Old

PRINT

Take(in(business(info(more(thoroughly 43%( 57% 58% 47% 44%( 44%(

More(relaxed(reading 46( 41( 45( 53& 48( 44(

More(for(detail,(specifics(&(precision 49( 50( 60 55& 48( 45(

Electronic is(more(for(skimming(and(browsing 51( 59& 59( 53( 55( 56(

DIGITAL

Far(easier(to(access 49( 54( 46( 55( 63& 62&

A(wider(array(of(sources 61( 62( 69( 65( 75& 65(

Tablet(or(smartphone(saves(me(time 45( 44( 45( 48( 62& 55&

Immediate(access(to(breaking(news 53( 52( 62( 57( 63& 61&

23


2018%will%be%a%year%of%“Cautious%Optimism”

1 SMB%market is%growing Number'of'SMBs'is'growingThey'are'expanding'from'the'coasts

They'remain a'vital'market'in'2018

2 Optimism%continues Confidence'continues'to'riseRevenues'are'growingPersonal'wealth'is'growing

They'will'be'investing in'their'businesses'while'the'economy'is'strong

3 Major%concerns%remain Difficulty finding'qualified'staffMaintaining'their'customer'base

There’s'an'opportunity'for marketers'to'address'their'concerns

4 Technology%cuts%both%ways

Technology has'enabled'an'expansionThey’re'worried'about'data'security

The benefits'of'technology'must'be'balanced'with'safety'assurances

5 Trust%in%journalism%and%local%news%is up

Local'news'sources'are'more'trustedDigital'and'print'are'complements

Local'business'news is'a'trusted'context'for'brand'messages

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About The Business Journals:

The Business Journals is a division of American City Business Journals (ACBJ), the largest publisher of metropolitan business newsweeklies in the United States, with 43 business publications across the country reaching more than 3.6 million readers each week. We also offer specialty publications for sports fans, sports business readers and classic car enthusiasts.

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tbj 2018 smb insights presentation 6 4 18 · ☆16thannual*survey ☆nationally*representative...

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tbj 2018 smb insights presentation 6 4 18 · ☆16thannualsurvey ☆nationallyrepresentative...