While small and medium businesses (SMBs) are known for their dedication and expertise, some question their ability to scale and effectively use technology. The notion that they can’t compete with large enterprises still continues.
However, we’re here to set the record straight with our latest Small and Medium Business Trends Report. This is the product of extensive research spanning over a year with inputs from multiple global teams. You can trust its findings, as they are rigorously backed by Salesforce Research. The data from this report busts the most common small business myths. Let’s check them out.
What we’ll cover:
- Myth 1: Small businesses lack the budget for modern technology
- Myth 2: Small businesses aren’t competitive
- Myth 3: Small businesses aren’t ready for artificial intelligence (AI)
- The Small & Medium Business Trends Report is your guide to SMB success
Myth 1: Small businesses lack the budget for modern technology
Myth 1: Small businesses lack the budget for modern technology
Myth: Many believe that advanced technology is beyond the financial reach of small businesses.
Reality: SMB owners aren’t hesitating to invest in tools that deliver a bang for their buck. While they laser-focus on their budgets, they’re often early adopters of modern technology. They understand that the right technology can dramatically enhance their market reach and sales pipelines. Also, it helps them deliver improved customer service and get a return on investment (ROI) by streamlining day-to-day operations.
Source: Small and Medium Business Trends Report, Sixth Edition
And our research proves this: 76% of businesses are increasing their tech spending compared to previous years. This shows SMBs are more open to tech adoption than ever. Growing businesses particularly prefer investing in cloud-based solutions like customer relationships management (CRM) and financial services solutions to get a unified view of their customers and business.
Businesses rely heavily on technology for multiple functions. Whether it’s conducting market research, creating invoices, improving cybersecurity or running digital storefronts. Small and growing businesses will continue allocating their budgets to scale and win more customers. Myth, busted. Next?
Start with SMB Basics
Myth 2: Small businesses aren’t competitive
Myth: It’s assumed that small and growing businesses can’t compete with established businesses or enterprises when it comes to revenue or growth.
Reality: All enterprises and unicorn businesses began as small businesses once. This perspective is reflected in the fact that 60% of SMB leaders see enterprises — not businesses of their size — as their greatest competition. SMBs are lean and have shorter feedback loops. They can adapt to market changes and customer needs quickly.
SMBs also understand that flexibility isn’t just a nice-to-have trait. It’s actually the core competency that allows them to punch above their weight. They work hard, and their team works even harder. And, with the right tools, small businesses can quickly grow big.
Source: Small and Medium Business Trends Report, Sixth Edition
SMBs can build stronger relationships with their customers because everything is more personalized. They can provide attentive service with tailored solutions (like a CRM), fostering loyalty. Plus, our research showed that SMBs often succeed by focusing on specific niche markets. They cater to specialized needs that larger businesses may overlook. This allows them to become experts in a particular area.
Myth, busted. SMBs compete by being customer-centric, using the right technology to scale and owning their community connections.
Myth 3: Small businesses aren’t ready for advanced AI
Myth: A widespread misconception is that SMBs — including mom and pop shops, and startups — aren’t equipped to handle advanced AI technology.
Reality: Untrue. Growing businesses or all shapes and sizes are using artificial intelligence (AI) right now. Many know its benefits and are scaling because of it.
We found that hundreds of business owners are using chatbots and predictive forecasting. In fact, 75% of SMBs use AI in some capacity and that number is only going to grow. With smaller teams, SMBs strategically use AI in multiple ways to automate repetitive tasks and improve efficiency. There we go: Another myth busted. Small businesses are definitely utilizing AI, and it’s available in the right tools (like a CRM).
Source: Small and Medium Business Trends Report, Sixth Edition
Our research shows that 85% of SMBs that invest in AI are confident they’ll yield positive outcomes. Besides, nine in ten SMB leaders admit AI makes their businesses efficient. The verdict? Small businesses are beyond ready for advanced AI solutions — in fact, they’re leading the way.
Using AI to make operations more efficient is the number-one priority for most SMBs. AI agents can take mundane tasks off your table. In fact, Kris Billmaier, EVP & GM, Sales Cloud & self-service & Growth Products at Salesforce, stated, “All small businesses could use an extra pair of hands — without the cost of additional headcount. We’re focused on doing everything we can to help SMBs be more productive, effective, and drive growth.”
With Agentforce, you can build and customize AI agents that best fit your business needs. They can operate across various channels like Slack, WhatsApp, and email and practically mimic a physical agent. From handling customer queries and offering product recommendations to running end-to-end marketing campaigns and helping your sales teams sell better — Agentforce helps scale your business more efficiently.
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The Small & Medium Business Trends Report is your guide to SMB success
You don’t have to navigate the complexities of the modern market alone — we’ve got you covered. Our Small and Medium Business Trends Report offers the latest insights and practical tips to help you scale your business. All of these findings were gathered by the Salesforce research team to help small businesses grow big.
Entrepreneurs are seeing a great change as they’re increasingly turning to the report as a strategic compass. It helps leaders of all different industries understand how their peers and other SMB leaders are using technology, particularly AI. Growing businesses learn about market shifts, tech advancements, and challenges to equip themselves for the future. You can read how it enables smart and well-informed decisions for small business success.
Learn how 3,300+ SMB leaders are using AI for sustainable growth. Download the 6th edition of the Small and Medium Business Trends Report for free.
AI supported the writers and editors who created this article.
