Introduction
In the wake of the U.S. mortgage crisis and ensuing ‘great recession’, I sought to identify the key areas of concern for small business owners and provide insight and additional resources to help business owners overcome their challenges. Through an online survey published in November 2010, small business owners were asked to identify their top three concerns facing their businesses in the current economic climate. Through this and a follow up series of articles I will discuss the results of the survey and will provide advice and resources to help business owners overcome these challenges.
Results & Interpretation, Implications for SME’s
The results of the survey reveal that the main concerns expressed by respondents revolved around developing new business prospects (21%), and maintaining revenues, cash flows, and profit margins (17%). Following these main concerns, are variety of other concerns were top of mind for small businesses including identifying, retaining and motivating human resources (10%), monitoring impacts of changes in government, taxes and health care costs (10%). Other concerns identified were emerging such as the need to understanding and implementing social media and other marketing strategy (8%), challenges of maintaining strategic focus versus taking advantage of opportunistic events (8%), managing time and organizational risk (8%), and operational efficiency improvement (cost reduction, supply chain improvement, development of business intelligence and just-in-time financial reporting (2%), and personal finance, investments and retirement planning (2%)).
Figure 1. Online survey responses collected from Small Business owners
These results are consistent with broader economic commentary in the general media which indicates that we are only beginning to emerge from the ‘great recession’ and that personal and commercial bankruptcies, unemployment and new business registrations are fairly unchanged over the last six to eight months. Revenue, cash flow, business development and sustainability remain primary concerns for small businesses. It is particularly in uncertain that businesses should evaluate their competitive landscapes, relative competitive positions, financial positions and evaluate the effectiveness of their competitive strategies. Through this process, businesses can refine their product/service and marketing strategies, target markets and strengthen their positions. In the coming weeks, we will post articles addressing strategic and other organizational challenges leading to actionable plans going forward.
Visit regularly for additional information relevant to small business owners.
Stephen Beech
Padgett Business Services
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(c) Stephen Beech 2010
(c) Stephen Beech 2010
