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Intuit QuickBooks Future of Small Business Report

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October 2016 - Projections show that the number of U.S. small businesses will grow from 30 million in 2016 to over 42 million in 2026. Read on to learn five trends that will give small businesses a competitive edge over the next decade.

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Intuit QuickBooks Future of Small Business Report

  2. 2. COMPETING WITH BIG BUSINESS Industry-shifting trends mean that this is a time of tremendous change, but also incredible opportunity for small businesses. Technology, combined with economic and demographic changes, mean that small businesses can compete with big business like never before. vs. 1
  3. 3. THE BIG ARE GETTING BIGGER, WHILE THE SMALL GET SMALLER The number of companies with over ten thousand employees grew by 90 percent. While the number of single-person businesses grew by 50 percent. The average size of a small business has shrunk by nearly 20 percent and new small businesses are starting leaner. In 2001, the average new small business started with over 6.5 employees. In 2014, that number had dropped to 4 employees. 90% 50% 2014 2001 20% 2
  4. 4. A NEW GOLDEN AGE OF SMALL BUSINESS IS EMERGING Projections show that the number of U.S. small businesses will grow from 30 million in 2016 to over 42 million in 2026. 2016 2026 30 Million 42 Million 10 20 30 40 500 Nimble small businesses are better suited to the realities of the 21st economy. The most successful small businesses are capitalizing on new opportunities, adapting when needed and pivoting to serve customer expectations in a rapidly changing world. ! 3
  5. 5. FIVE TRENDS THAT WILL GIVE SMALL BUSINESSES A COMPETITIVE EDGE OVER THE NEXT DECADE: 1. World-class business infrastructure. 2. Insightful data. 3. A growing pool of on-demand talent. 4. Online marketplaces. 5. Cost-effective online advertising. 4
  6. 6. 1: LOW-COST, WORLD-CLASS BUSINESS INFRASTRUCTURE Today, small businesses have access to the tools − from world-class manufacturing, logistics and cloud computing − that were once the sole domain of the big guys. Why It Matters: Successful small businesses win by using business infrastructure, like cloud computing, that turns fixed costs into variable costs, allowing them to scale their resources up and down and only pay for what they use. Google Cloud Service change in cost over last 18 months 50% $$$ 62% Small businesses operating in the cloud $$ 5
  7. 7. 2: DATA, DATA AND MORE DATA We’re in the middle of a data revolution. Data is the new currency of business and it is growing exponentially. Why It Matters: Successful small businesses win by making sense of the mounds of data at their disposal. of the world’s data was created within the last two years 90% By 2020, at least 33% of all data will pass through the cloud 44x Data production will be in 2020 vs 2009 2.5QUINTILLION bytes of data created daily 6
  8. 8. 3: RISE OF ON-DEMAND TALENT The rise of the on-demand economy is leveling the playing field between small businesses and larger corporations. This growth is part of a broader long-term growth trend in the contingent workforce. Why It Matters: Successful small businesses win by finding the right people for the job without having to take on the responsibility of hiring traditional employees. Of the U.S. workforce, on-demand workers have risen... 202020161991 17% 43% 7
  9. 9. 4: CONSUMERS WANT MORE NICHE PRODUCTS & SERVICES Consumer demand for niche products and services, which small businesses are uniquely positioned to offer, are on the rise. Consumers are increasingly dictating what they want, when and where they want it. Agile small businesses tuned into these conversations will be able to listen to their customers and deliver the products, services and experiences they demand. For example, craft breweries expanded their share of the U.S. beer market from ~5% in 2008 to >20% in 2015. Why It Matters: Successful small businesses win by taking advantage of online marketplaces to gain access to millions of customers at the click of a button. $$ 8
  10. 10. 5: COST-EFFECTIVE, TARGETED ADVERTISING For Developers: For just $20,you can buy 1,000impressions for a sponsored photo on Instagram. Want video? You can buy 1,000impressions on Hulu for an in-stream video ad for only $35. $55 $20 +$35 Small businesses will never be able to compete with big business when it comes to mass advertising campaigns. But in the age of the Internet, there’s an opportunity to spread your message on a global level. For example... Why It Matters: Successful small businesses win by amplifying their message to targeted customers through online platforms. 9
  11. 11. THANK YOU