A national study released by Ann Arbor’s DaySmart Software has found that while 63 percent of respondents who own small businesses across the U.S. increased their sales from 2017-2018, many still worry about the challenges to running and growing their operations. Many have adopted technology to help.
The study examined how small-business owners are leveraging technology. The top five challenges the owners reported are making enough money, controlling costs, finding new customers, marketing to prospective or current customers, and managing their time.
“The digitization of the way we work and live has forced small business owners to rethink their manual methods – but that’s not always an easy task,” says Jeff Dickerson, CEO of DaySmart. “This survey validates the importance of having a holistic software solution that can make the transition to automated and digitized operations more efficient and ultimately help small businesses grow faster than ever before.”
About 51 percent of small-business owners have adopted business management software, citing positives including reduced effort and paperwork, increased customer satisfaction, and improved work/life balance. Of those who use business management software, 42 percent use cloud-based products, while 38 percent prefer on-premise software.
Respondents who use the software report making more money than those that don’t. About 73 percent of respondents who use business management software reported making more than $100,000, compared to 60 percent of respondents who do not use it.
The survey found that technology adoption may be generational. About 51 percent of small-business owners who use software are 25-44 years old, while only 37 percent of respondents who do not use software fall into the age bracket. The majority, or 63 percent, who do not use the software are 45 years old or older.
The No. 1 barrier to software adoption for U.S. businesses is a lack of budget resources, according to 26 percent of respondents. Other barriers include a lack of internal expertise (24 percent), concerns about cybersecurity (20 percent), and an unclear understanding of which tools are required to solve business problems (16 percent).
The top areas of technology investment in 2019 for small business owners are marketing software (36 percent), point-of-sale systems (35 percent), and data security (25 percent).
Small-business owners are also prioritizing marketing efforts to improve sales in 2019. About 53 percent indicated they plan to invest more in social media, while 39 percent said they are experimenting with new marketing channels. About 27 percent also said they are hiring more employees to improve sales.
DaySmart Software partnered with research firm Researchscape International to survey a total of 1,763 U.S. small-business owners in March and April. Respondents are decision makers or full or partial owners of businesses with fewer than 100 employees. About 62 percent have up to nine employees.
DaySmart provides business management tools designed to make it easier for entrepreneurs to run and grow their businesses. It offers desktop and cloud apps.
