TradeGecko global survey reveals SMBs ‘punching above their weight’ amid tough competition

  • 80 percent maintained or increased revenue in 2018-2019 TradeGecko State of Small Business Global Report, with over 40 percent expanding into new channels or geographies

  • Agile SMBs prove adept at leveraging social and digital channels to level the playing field with larger rivals but manual processes limiting growth potential

Toronto / Singapore, 30 January 2019 – More than 80% of small and medium-sized commerce businesses (SMBs) reported maintaining or growing revenue in 2018 despite the challenges competing against global rivals. This is according to the inaugural State of Small Business Global Report by TradeGecko – a leading cloud-based commerce platform for growing companies, in collaboration with Golfdale Consulting.

SMBs are the lifeblood of the global economy, making up over 95% of all firms and 60-70% of total employment. The report polled 573 product-centred commerce businesses from 24 countries around the world, including 383 from the United States, to lift the lid on the challenges and opportunities for small and medium-sized commerce businesses. In total, the small businesses surveyed employed some 107,000 people and sold US$1.9 billion in products last year. They spanned markets from the United States to Australia, sectors from Fashion to Fitness, and from early-stage start-ups to mature multi-million dollar businesses.

“Small and medium businesses are punching above their weight when it comes to competing in the global market against large firms with big teams and big budgets. But as they grow they are being stretched by operational issues and manual processes. Cloud-based services, social media and digital channels are levelling the playing field in all areas of running a business – marketing, accounting, sales, payroll, and inventory and order management,” said Cameron Priest, Co-Founder and CEO of TradeGecko.

The survey showed that agile small businesses are highly digitally savvy; leveraging social media and technology to level the playing field with bigger competitors when it comes to marketing their products. Businesses under US$1 million rely primarily on word of mouth to generate buzz about their products with Facebook (74%) and Instagram (43%) being the dominant social media platforms.

As SMBs grow, they rely on a broader channel mix including bricks-and-mortar, in-person sales, wholesalers and distributors. This is reflected in their social media strategies, with firms over US$5 million using channels such as Twitter (37%), YouTube (37%) and LinkedIn (36%) for promotion campaigns.

While SMBs are adept in using technology to market products, many of their operational systems are holding them back. Almost a quarter of SMBs under US$1 million still rely on pen and paper for their inventory management, with another 31% using spreadsheets. Businesses under US$1 million spend on average over 90 hours a month on critical backend functions such as order and inventory management as well as product sourcing. Even larger businesses (over US$5 million) rely on manual processes, with more than half reported using spreadsheets. Many respondents reported having too much, or not enough stock, with 70% of respondents regularly experienced ‘stocking out’ or ‘overstocking’.

In general the study showed that while tough competition (31%) remained the biggest challenge for founders across the board, the day-to-day pressures of running a business have an impact. Insufficient time (27%), hiring the right staff (26%) and operational issues (21%) were among the biggest factors cited by founders holding their businesses back from growing more quickly. Owners would like to spend more time on marketing, sales and product development.

“Being a business founder often means being a ‘Jack and Jill of all trades’ but as your business succeeds you can leverage technology not just to sell product but to build scalable operational systems that will support future growth,” added Priest. “Flexible online tools give small and medium-sized businesses the superpowers they need to compete with larger rivals and ultimately free up business owners to do what they do best, build amazing businesses.”

For more information, The State of Small Business Global Report can be downloaded here.

https://www.tradegecko.com/ebooks/2018-2019-state-of-small-business-report

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

What Should Employees Do in a Crisis

What Should Employees Do in a Crisis?

At the start of January 2023, a drunk man in an Air India flight’s business class urinated over a 72-year-old woman sitting beside him. The man, Shankar Mishra, was the Vice President of the financial services company Wells Fargo (he was fired following the incident). In itself, the incident is disgusting.

Top 5 AI Companies in the World

Top 5 AI Companies in the World

Technological developments are driven by the human need to make life easier and complete tasks faster and more efficiently. The drastic growth of technology in recent years has paved the way for artificial intelligence (AI) to become an integral part of almost every industry—from education and lifestyle to music and sports. It is everywhere. And by the looks of it, it is here to stay.

3 High Demand Metaverse Jobs in Future That Your Kids Should Look into

3 High Demand Metaverse Jobs in Future That Your Kids Should Look into

It’s no wonder why Jumpstart Media named “metaverse” one of the top emerging trends and technologies to look forward to in 2023. With an expected compound annual growth rate (CAGR) of 39.4% from 2022 to 2030, Grand View Research forecasts that the global metaverse market is set to expand exponentially. From fashion shows, gaming, luxury products, sports and travel to art, many industries are tapping into the metaverse’s potential.

4 Most Anticipated Tech IPOs of 2023

4 Most Anticipated Tech IPOs of 2023

The technology industry has been a driving force in shaping the global economy for decades and the initial public offerings (IPOs) of technology companies are often highly-anticipated events. In 2022, the tech IPO market saw a slowdown compared to the previous year, 2021.

5-Luxury-Items-That-Are-Worth-the-Investment

5 Luxury Items That Are Worth the Investment

The world of luxury items is one of elegance and exclusivity, with their value increasing as time passes. They are unattainable and highly coveted by the masses. Plus, luxury products have a Veblen effect on the market—as their price rises, their demand does, too.

How Do You Know When to Give Up on Your Startup?

How Do You Know When to Give Up on Your Startup?

Starting a new business is never an easy task. You put your heart into it and spend countless hours working on what you believe will make someone happy or solve society’s problems. But sometimes, startups don’t work out as planned—this can be both disheartening and discouraging.