Small Businesses Are Investing in Tech and Marketing to Grow in 2017

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Key Takeaways

​What? The majority of businesses want to grow this year, and most small businesses plan to do so with investments in tech and marketing.

So what? Technology and the internet have made scaling in a global economy more attainable than ever.

Now what? Outsourcing and business process automation are two areas that growth-minded companies can invest in to spur growth.  

​Aug. 30, 2017

Most small businesses are investing in tech and marketing to spur growth this year, according to a report from G2 Crowd

The majority—77%—of small businesses are investing in growth, and 75% have reported that growth is their main business objective in 2017, according to a report from G2 Crowd. 

Michael Fauscette, chief research officer at G2 Crowd, wrote in a blog post that technology and the internet have created a more level playing field for businesses​. This has opened up opportunities for small businesses to compete on a global scale.

“Small businesses face the same business challenges as their medium​ and enterprise competitors but do so with unique resource constraints,” he writes. “Faced with these constraints, the growth-oriented small business often turns to technology as an equalizer. In 2016, 63% [of small businesses] reported investing in growth plans and of that investment, 18% invested in software, cloud software and other IT systems.”

Technology investment was tied for first alongside investment in marketing, advertising and new equipment. When filtering down to only the businesses focused on growth, technology takes the clear No. 1 area of focus at 20%.

Other tools for growth-minded small businesses, per the report, include:

  • 51% say business process as a service is an important part of growth; 56% for growth-minded businesses.

  • Payroll and legal functions are outsourced by 36% of small businesses, with bookkeeping outsourced by 31%.

  • ​Only 42% of the smallest businesses, with one to 25 employees, use outsourcing, far below the 80% of businesses with 100 to 250 employees reporting their use of outsourcing. 

Approximately 40% of small businesses plan to increase IT spending this year, which jumps to 47% of growth-minded small businesses. 

“As for the types of systems the small businesses used or planned to use, a large number had some form of core IT systems such as accounting, payroll, marketing and CRM,” Fauscette writes. >

 

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