The U.S. Chamber of Commerce recognizes May as National Small Business Month, so we want to take a moment to acknowledge the more than 32 million small businesses that form the backbone of the U.S. economy, encouraging economic growth and creating jobs. In fact, from 1995 to 2021, small businesses were responsible for nearly two-thirds of the new jobs created.1
It may seem surprising, but 99.9% of businesses in the U.S. are small businesses. Moreover, small business growth shows no signs of slowing either, with a record-breaking 5.5 million new business applications filed in 2023, according to the U.S. Census Bureau. The hard work, ingenuity, dedication, and economic contributions of these entrepreneurs have been annually acknowledged by the U.S. Small Business Administration, starting first with National Small Business Week, which was introduced in 1963.2
While being a small business owner is extremely rewarding, we know it’s not easy. Fifty percent of small business owners interviewed for the Small Business Index say they’re working more hours now than they were a year ago, and fifty-two percent say they’re struggling to keep up with rising prices. 3
As SMB entrepreneurs look to lower operational costs, many are willing to try new things. In a new study by the Connected Commerce Council (3C), a significant majority of SMB leaders adopted free and low-cost digital tools to help save time and money, increase employee productivity, and market and sell goods and services. Many see AI-based tools as the next step in ensuring ongoing resilience and competitiveness. 4
The open mindset of SMB owners combined with the current economic climate offers an unprecedented opportunity for financial service providers to deliver the personalized insights and tools SMBs want and need to run and grow their businesses.
By providing SMBs with advice, insights, and a holistic view of their business, you can position your institution as a trusted partner and create greater “stickiness” in your relationships with them. Afterall, the research backs this up. According to J.D. Power’s U.S. Small Business Banking Satisfaction Study, when small businesses receive advice from banks, their ratings of satisfaction, likelihood to recommend, and likelihood to reuse the bank increases significantly. 5
Further, this study also revealed there are three forms of advice in particular sought most by small businesses:
- advice on how to avoid fees
- spending and savings guidance
- guidance to help the business improve its credit score/creditworthiness 6
With the right tools, your institution can help deliver insights around these topics and more.
In our upcoming SMB webinar, we’ll discuss some of the ways banks and credit unions can gain a clearer view of SMB clients, deliver strategic advice, and effectively partner with this vital segment of our economy.
Among other things, we’ll cover how to:
- Engage SMBs by providing a tool to manage their business data in a single experience
- Proactively meet SMB needs with personalized insights and analytics
- Source new alternative data for use in credit and risk management
- Expand your reach with up-sell and cross-sell opportunities
By sharing data-driven insights and tools with your SMB clients, you’ll help to grow their businesses as well as your own, stimulating economic growth, and even creating new jobs.
And that’s well worth celebrating. We invite you to commemorate this year’s National Small Business Month with us by joining our SMB webinar on Thursday, May 9th. Click here to register to attend.
