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BizReport : Advertising archives : June 24, 2019

Report: SMB owners taking on more responsibility

While there has been a boom in small businesses opening in the US over the past decade, a new report indicates these business owners are shouldering much of the responsibility. SMBs are also finding newer tech to be an implementational challenge. To cope, more SMB owners are shouldering more of the business responsibility.

by Kristina Knight

ScaleFactor has released the results of a recent poll and among the more interesting findings are these: most SMBs (72%) are using AI/machine learning to scale costs but many find the implementation challenging. And, more than half haven't made any new hires over the past year, primarily because of labor costs.

On the plus side most survey respondents say they've seen stable or increased revenue from 2018 to 2019, but with nearly two-thirds (58%) saying that they're using back-office software - like accounting software - to save time and the costs of having an actual in-house accountant. The most-used accounting-type software are for bookkeeping, invoicing, and payroll.

"The data from our inaugural report highlights the fact that small business owners have a lot on their plate, from running the business to performing back-office tasks," said Kurt Rathmann, founder and CEO of ScaleFactor. "We are experiencing a new phase that focuses on capturing the efficiencies of an intelligent workforce through the use of insightful and prescriptive technology. Complex back-office operations can now be consolidated into one intuitive 'business OS' that provides a foundation for owners to focus on growing their business. Our innovative platform evolves best practices making it an exciting time to be an SMB owner."

Other interesting findings from the report include:

• 76% of SMBs 'have no plans' to hire a CFO
• 34% of SMBs with fewer than 19 employees reinvest profits to finance the business
• 43% of SMBs with between 20 and 99 employees use credit cards for financing
• SMBs with between 100 and 500 employees use loans for financing

More findings from ScaleFactor's State of SMB Finance Report can be accessed here.

Tags: ScaleFactor, small business, SMB finance, SMB tips, SMB trends

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