Small and midsize businesses (SMBs) play a substantial role in the US economy, representing 44% of GDP, almost half of employment, and around $370 billion in tech spending. McKinsey's survey of 3,500 US SMBs reveals their evolving technology needs, purchasing preferences, and growth outlook. SMBs, impacted by economic challenges, are scrutinizing each purchase amid inflation concerns and talent shortages. In response, many plan to cut technology spending, with 25% expecting reductions of up to 25% in the next 12-24 months. Connectivity remains a core expense, but spending patterns are changing, and SMBs are adopting centralized purchasing, digitizing procurement, experimenting with flexible consumption models, and trying products before purchase. As SMBs evolve, tech providers must understand their distinct needs, shifting from traditional enterprise strategies to succeed in this dynamic market.
Small and midsize businesses (SMBs) play a substantial role in the US economy, representing 44% of GDP, almost half of employment, and around $370 billion in tech spending. McKinsey's survey of 3,500 US SMBs reveals their evolving technology needs, purchasing preferences, and growth outlook. SMBs, impacted by economic challenges, are scrutinizing each purchase amid inflation concerns and talent shortages. In response, many plan to cut technology spending, with 25% expecting reductions of up to 25% in the next 12-24 months. Connectivity remains a core expense, but spending patterns are changing, and SMBs are adopting centralized purchasing, digitizing procurement, experimenting with flexible consumption models, and trying products before purchase. As SMBs evolve, tech providers must understand their distinct needs, shifting from traditional enterprise strategies to succeed in this dynamic market.