Small and midsize businesses (SMBs) account for 44% of US GDP and nearly half of all employment. They spend roughly $370 billion on technology, with unique buying preferences. Tech suppliers must tailor their products and approach to meet SMBs' needs. McKinsey surveyed 3,500 US SMBs to understand their technology needs and growth outlook. Small and medium-sized businesses (SMBs) are struggling due to economic headwinds. 37% of SMB owners cite inflation as their biggest challenge, the highest in 40 years. One in five expect growth to slow, and talent is a challenge amid the Great Attrition. 50% of business owners report difficulty filling open positions; 90% report few or no qualified candidates. SMBs plan to cut technology spending due to economic uncertainty. One in four SMBs will reduce tech expenses by up to 25% in the next 12-24 months. For SMBs with over 25 FTE employees, IT budget cuts could rise to 30%.
Small and midsize businesses (SMBs) account for 44% of US GDP and nearly half of all employment. They spend roughly $370 billion on technology, with unique buying preferences. Tech suppliers must tailor their products and approach to meet SMBs' needs. McKinsey surveyed 3,500 US SMBs to understand their technology needs and growth outlook. Small and medium-sized businesses (SMBs) are struggling due to economic headwinds. 37% of SMB owners cite inflation as their biggest challenge, the highest in 40 years. One in five expect growth to slow, and talent is a challenge amid the Great Attrition. 50% of business owners report difficulty filling open positions; 90% report few or no qualified candidates. SMBs plan to cut technology spending due to economic uncertainty. One in four SMBs will reduce tech expenses by up to 25% in the next 12-24 months. For SMBs with over 25 FTE employees, IT budget cuts could rise to 30%.