Small Business Owners Worldwide See Optimistic Future and Feel Technology Gives Competitive Edge
Wednesday, 28 December 2005
A new global survey from MasterCard International shows that small business owners around the world are optimistic about the future of their businesses. Specifically, 60 percent of small business owners worldwide say the future outlook of their business is promising and over half are confident that they will meet their financial goals in 2006. Sixty-five percent say they would tell a friend to start a small business now, rather than to wait another year.
“This research shows us that despite mixed views on our worldwide economic outlook, small business owners feel confident their businesses will continue to succeed in the year ahead,” said Bruno Perreault, Group Head, Global Small Business and Mid-Sized Enterprises, MasterCard International. “Small businesses are one of the engines driving the success of our global economy, and MasterCard is committed to helping them succeed.”
The Role of Technology
The MasterCard International Global Small Business Survey, which was released on December 14, also shows that small business owners around the world overwhelmingly (90 percent) believe technology is important to their business's future. In fact, approximately 80 percent agree that technology creates financial opportunities for businesses.
While 67 percent say that small businesses that weave technology into their culture gain a competitive edge, many small businesses are not committing a significant portion of their business budgets to technology. According to the survey, nearly 60 percent plan to spend only 10 percent or less of their business's budget on technology upgrades, and only 21 percent feel their business is on the leading edge of technology for their industry.
Business Challenges
When asked to name their business's top challenge in the next year, small business owners cited sales and business development (28 percent), followed by cost increases (24 percent), and competition (15 percent).
Eighty-seven percent of small business owners said that it was just as difficult or more difficult to be successful this year relative to last year, and 81 percent said that their monthly business expenditures in the current year had increased or remained the same since last year.
When asked to forecast for next year, small business owners said payroll expenses (40 percent) will be their business's greatest expense, followed by technology upgrades (19 percent) and capital expenditures (17 percent).