SMB Business Challenges

1. November 2019
SMB Business Challenges

2. INCREASING SALES TO SMBS
2

3. Output
INSIGHT
Topics Methods
• Qualitative
• Live / online focus groups
• In-depth interviews
• Quantitative
• Custom online
• SMB Pulse omnibus
• Snap Poll
Insight for CE / product /
marketing strategy
Data for PR / content / social /
collateral programs
3
• Attitudes and usage
• Buyer identification
• Competitive perceptions
• Market segmentation
• Media behaviors / preferences
• Message / positioning testing
• Net promoter score
• Persona / buyer journey
• Purchase intent, behaviors,
channels and preferences

4. OUTREACH
Video
Email
Newsletters
Checklists /
Worksheets
Case StudiesArticles Blog Posts
White Papers
Podcasts
eBooks
PR Surveys
Social Media
Handbooks /
Guides
Webcasts
Slideshows
Infographics
Interactive
Tools
• Survey data
• Creative brief
• Editorial calendar
• Content development
• Content audit
• Analytics
Contribution
• Expert
• Actionable
• Relevant
• Easy to understand
• Professional
• Brand-building
• Custom
Principles
Direct Mail
Event
Collateral
Brochures /
Sell Sheets
Custom Pubs
4

5. 5
METHODOLOGY
ONLINE SURVEY VIA THE BREDIN.COM/SMBPULSE
500 SMB PRINCIPALS AT U.S. COMPANIES <500 EMPLOYEES (+/- 4% CI)
Company Size Quotas
250 VSBs <20 employees (97.7% weighting)
150 SBs 20-99 employees (2% weighting)
100 MBs 100-500 employees (.3% weighting)
NOVEMBER 1-7, 2019WHEN
HOW
WHO
% Indicates highest % in a given column
(A) / (B) / (C) Indicates statistically significant difference between columns
Note: The SMB Pulse is open to marketer participation.
Some charts in this deck do not total to 100% due to rounding.

6. 6
RESPONDENT CHARACTERISTICS
Principal (e.g.,
owner, founder,
partner, CEO,
president, etc.)
100
%
Male
Female
57%
43%
6%
23%
29%
38%
4%
Gen Z (18 to 22)
Millennials (23 to 38)
Gen X (39 to 54)
Boomers (55 to 73)
Silent Generation (74+)
Respondent Age Company Age Business Outlook
Title / Role Company Size Gender
50%
30%
20%
VSBs
(<20)
SBs
(20-99)
MBs
(100-500)
n=500
5%
33%
29%
33%
Less than 2 years
2-9 years
10-19 years
20 years or more
10%
37%
23%
25%
4%
Up more than 100%
Up 10% to 100%
Up less than 10%
Same as 2018
Down compared to 2018

7. 7
RESPONDENT CHARACTERISTICS
West
27%
South
37%
Midwest
17%
Northeast
19%
n=500
Geography
36%
48%
16%
Population Density
Urban
Suburban
Rural 27%
15%
10%
13%
20%
8%
7%
Less than $100K
$100K to $249K
$250K to $499K
$500K to $999K
$1M to $4.9M
$5M to $10M
More than $10M
Company Revenue
40%
26%
21%
14%
Manufacturing
Construction/Mining/Contracting/
Electrical/Landscape/Plumbing/etc.
10%
Manufacturing/Transportation and
Warehousing
5%
Automotive 2%
Computer Hardware/Electronic
Equipment
2%
Pharmaceutical/Medical
Devices/Biotechnology
1%
Telecommunications 1%
Energy/Utilities 0%
Other
Personal Services 9%
Education/Training 5%
Industry
Professional Services
Financial
Services/Accounting/Bookkeeping
7%
Computer Software/Internet 7%
Medical 6%
Advertising/Consulting/Design/Ma
rketing Services
5%
Legal 5%
Banking/Insurance/Mortgage 4%
Computer Services/Consulting 3%
Publishing/Printing/Media 2%
Architect/Engineering 1%
Retail/Wholesale
Retail 12%
Entertainment/Recreation 4%
Real Estate 4%
Food/Beverage/Restaurants 3%
Wholesale 2%
Travel/Hotel/Hospitality 1%

8. BUSINESS CHALLENGES

9. How challenging is each of these business issues?
BUSINESS CHALLENGES
Customer acquisition is the leading challenge overall…
Very Somewhat Not at all
n=500 RANDOMIZED9
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
46%
45%
34%
46%
50%
43%
29%
35%
37%
37%
37%
39%
36%
41%
20%
18%
32%
45%
33%
30%
37%
51%
45%
44%
45%
45%
45%
48%
44%
71%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)

10. How challenging is each of these business issues?
BUSINESS CHALLENGES: COMPANY SIZE
…but finding good employees and innovation are the biggest challenge for SBs and MBs
Very
n=500 RANDOMIZED10
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Headcount*
VSBs
(A)
SBs
(B)
MBs
(C)
35% 36% 44%
22% 37% (A) 44% (A)
21% 48% (A) 49% (A)
20% 33% (A) 47% (AB)
20% 31% (A) 43% (AB)
20% 27% 40% (AB)
19% 45% (A) 46% (A)
20% 21% 40% (AB)
18% 37% (A) 46% (A)
18% 39% (A) 45% (A)
17% 38% (A) 45% (A)
16% 26% (A) 42% (AB)
15% 23% (A) 43% (AB)
14% 29% (A) 50% (AB)
8% 25% (A) 44% (AB)
35%
48% (A)
50% (AB)
Second challenge
Third challenge
Top challenge
*UNWEIGHTED

11. How challenging is each of these business issues?
BUSINESS CHALLENGES: COMPANY REVENUE
Employee acquisition and retention is a top concern of companies >$500K in revenues
Very
n=500 RANDOMIZED11
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Company Revenue*
<$500K
(A)
$500K-
$999K (B)
$1M to
$4.9M (C)
$5M or
more (D)
40% 37% 35% 31%
29% 37% 33% 31%
27% 42% 42% 47%
27% 31% 31% 35%
25% 37% 25% 34%
27% 31% 23% 23%
25% 42% 37% (A) 43% (A)
27% (C) 28% 16% 23%
26% 37% 31% 32%
24% 32% 30% 46% (AC)
22% 35% (A) 37% (A) 38% (A)
23% 35% (AD) 23% 19%
22% 28% 24% 22%
24% 31% 26% 28%
17% 28% (A) 21% 26%
42% (A)
Second challenge
Third challenge
Top challenge
40%
42% (A)
42% (A) 47% (A)
*UNWEIGHTED

12. How challenging is each of these business issues?
BUSINESS CHALLENGES: BUSINESS OUTLOOK
Cost management and cash flow are top concerns of fast-growth SMBs
Very
n=500 RANDOMIZED12
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Business Outlook
No Growth
(A)
Slow Growth
(B)
Fast Growth
(C)
40% 34% 31%
21% 24% 24%
16% 36% 19%
22% 17% 22%
17% 23% 24%
23% 15% 19%
15% 28% (A) 21%
18% 13% 26% (B)
18% 23% 17%
12% 23% (A) 23% (A)
17% 22% 15%
15% 15% 18%
16% 13% 16%
11% 17% 18% (A)
5% 13% (A) 11% (A)
40%Second challenge
Third challenge
Top challenge
36% (AC)
31%

13. How challenging is each of these business issues?
BUSINESS CHALLENGES: COMPANY AGE
Startups are most concerned with employee retention; older SMBs, customer acquisition
Very
n=500 RANDOMIZED13
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Company Age
<2 yrs.
(A)
2-9 yrs.
(B)
10-19 yrs.
(C)
20 yrs. or
more (D)
31% 40% 35% 32%
25% 22% 26% 21%
25% 21% 23% 20%
19% 19% 21% 22%
25% 20% 24% 17%
19% 20% 26% (D) 15%
43% 19% 23% (D) 14%
37% (CD) 26% (D) 17% 14%
19% 19% 22% 16%
31% (CD) 26% (CD) 16% 11%
7% 19% 19% 18%
19% 18% (D) 23% (D) 10%
6% 21% (D) 18% 11%
19% 14% 20% (D) 11%
13% 11% (D) 11% (D) 5%
40%Second challenge
Third challenge
Top challenge
43% (BCD)
35% 32%

14. How challenging is each of these business issues?
BUSINESS CHALLENGES: GENDER
Female SBOs are significantly more concerned with cash flow
Very
n=500 RANDOMIZED14
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Gender
Male
(A)
Female
(B)
38% 33%
20% 25%
22% 21%
23% 18%
22% 20%
21% 18%
19% 21%
14% 25% (A)
22% 16%
17% 19%
20% 15%
17% 16%
14% 17%
15% 15%
8% 9%
38%Second challenge
Third challenge
Top challenge
33%

15. How challenging is each of these business issues?
BUSINESS CHALLENGES: GEOGRAPHY
SMBs in the South are significantly more concerned about cash flow than other SMBs
Very
n=500 RANDOMIZED15
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Geography
West
(A)
Midwest
(B)
South
(C)
Northeast
(D)
34% 27% 35% 46%
21% 14% 33% (ABD) 16%
16% 17% 27% (A) 25%
21% 14% 24% 22%
22% 19% 23% 16%
23% 14% 20% 20%
16% 12% 28% (AB) 18%
20% 12% 26% (B) 16%
16% 14% 24% 20%
14% 10% 21% (B) 27% (AB)
11% 14% 22% (A) 22% (A)
15% 7% 26% (ABD) 9%
21% (B) 5% 19% (B) 11%
18% (B) 7% 15% 18% (B)
10% 5% 11% 7%
27%Second challenge
Third challenge
Top challenge
34% 35% 46% (B)

16. How challenging is each of these business issues?
BUSINESS CHALLENGES: INDUSTRY
SMBs in Retail / Wholesale are more concerned with competition than SMBs in other industries
Very
n=500 RANDOMIZED16
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Industry
PS
(A)
RW
(B)
M
(C)
Other
(D)
36% 43% 26% 27%
18% 27% (A) 28% 17%
20% 20% 33% 15%
19% 30% (ACD) 10% 17%
23% (C) 25% (C) 12% 17%
17% 22% 21% 20%
13% 22% (A) 29% (A) 20%
19% 21% 26% (D) 12%
21% (C) 22% (C) 10% 15%
17% 22% 15% 17%
14% 24% (AD) 19% 10%
18% 17% 17% 12%
21% (D) 15% 12% 8%
16% 15% 17% 10%
7% 11% 10% 7%
Second challenge
Third challenge
Top challenge
43% (CD)36%
33% (ABD)
27%

17. How challenging is each of these business issues?
BUSINESS CHALLENGES: POPULATION DENSITY
Urban SMBs are most challenged by keeping current on tech
Very
n=500 RANDOMIZED17
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Population Density
Rural
(A)
Suburban
(B)
Urban
(C)
32% 42% 25%
28% 23% 19%
22% 21% 22%
20% 21% 21%
11% 20% 28%
17% 22% 18%
22% 19% 19%
17% 20% 20%
13% 23% 15%
11% 19% 21%
13% 18% 21%
15% 17% 16%
11% 17% 16%
11% 15% 16%
9% 7% 12%
Second challenge
Third challenge
Top challenge
32% 42% (C)
28% (A)

18. How challenging is each of these business issues?
BUSINESS CHALLENGES: RESPONDENT AGE
Millennial SBOs are most concerned with employee retention
Very
n=500 RANDOMIZED18
35%
23%
21%
21%
21%
20%
20%
20%
19%
18%
18%
16%
15%
15%
9%
Finding new customers
Managing costs
Finding good employees
Dealing with competition
Keeping current on technology
Retaining current customers
Retaining good employees
Having enough money to pay our bills
Coping with economic / political uncertainty (e.g.
tariffs, shifting demand, interest rates etc.)
Keeping our data secure
Complying with government and industry
regulations
Staying in business
Access to capital
Developing new products and services
Coping with climate change (i.e. increased risk
of fire, flood, storms etc.)
Respondent Age
18 to 38
(A)
39 to 54
(B)
55+
(C)
37% 41% 33%
31% (C) 30% (C) 18%
31% (C) 25% 17%
26% 27% (C) 17%
20% 20% 21%
23% 25% 17%
42% 22% (C) 13%
36% (C) 26% (C) 13%
21% 27% (C) 15%
36% (BC) 22% (C) 12%
21% 17% 17%
29% (BC) 17% 13%
26% (C) 23% (C) 10%
34% (BC) 14% 11%
23% (BC) 12% (C) 4%
Second challenge
Third challenge
Top challenge
42% (BC)
41% 33%

19. THANK YOU