SMBs Feel Business Confidence, Could Increase Tech Spending

Eight Ways to Avoid Explosive Rises in IT Costs

In the U.S., small to midsized businesses are feeling more confident in their futures than they have been in several years, says the Sage Business Index for 2013. Sage Group conducted the survey of 11,000 SMBs from around the world from July through August and found that global confidence is up, but it is much higher in the U.S.

After several years of global economic issues, these findings show that the economy may be finally beginning to mend. Connie Certusi, executive vice president of Sage Small Business Accounting said in a statement:

‘Small businesses continue to be the driver of the U.S. economy and it is inspiring that business owners are confident in their prospects. With that said, many business owners have legitimate concerns about the variables that can impact their bottom line, namely the rising cost of energy, raw goods and inflation. Small business owners are always more vulnerable to these concerns so it is wise to be mindful of the challenges that these businesses will continue to face in 2014.’

This news falls in line with the report of the CBeyond Summer 2013 Business Leader Snapshot (registration required for download), which found that 59 percent of SMB business leaders planned to increase their tech budgets this year.

Having confidence in their economic situation allows smaller businesses to invest more in their companies.

In this survey, 52 percent say their business could not survive without network access, while 34 percent say business could not function without mobile services. This survey identified network access as the top technology concern with SMBs at 95 percent, followed at a close second by mobile technology at 93 percent.

Respondents also said that technology saves them money and time (89 percent), and 64 percent of those leaders have already budgeted to maintain and/or update current technologies for their companies in the coming year.