Small businesses that expand globally are likely to grow faster and employ more people.
Written by Riva Lesonsky
According to the seventh edition of Visa's Global Back to Business Study, small and medium-sized businesses (SMBs) are looking “beyond Main Street” and “plan to prioritize cross-border sales.” And American companies aren't the only ones with global growth in mind. The study surveyed consumers and small businesses in 10 international markets: Australia, Brazil, Canada, Germany, Hong Kong, Ireland, New Zealand, Singapore, United Arab Emirates (UAE) and the United States.
This global movement is being driven, in part, by entrepreneurs' adoption of new technologies, including digital payment solutions such as cashless transactions. This is very important because the survey also revealed that 55% of consumers expect to increase their use of digital payments this year.
The COVID-19 pandemic has halted the growth plans of many small businesses. But many entrepreneurs are starting to gear up again. “Small and medium-sized businesses can harness the power of digital payments to improve efficiency, reach new customers, and simply grow in today's world,” said Jenni Mundy, Global Head of Merchant Sales and Acquiring at Visa. “As we grow, we're seeing the mindset of small businesses shift from survival mode to growth mode.” The world is becoming increasingly digital. ”
Mundy added, “Where once only large companies had the scale to access customers across the country or around the world, today's small business owners can virtually cross borders.” I'm adding.
The latest small business thinking
The Global Back to Business Study shows how many small businesses are changing their mindset.
ready to explore the world
79% of executives surveyed said their growth strategy is focused on “expanding into new geographies.” Smaller brick-and-mortar and online retailers are even more ambitious, with 90% saying they see cross-border sales as a growth opportunity.
And the world is ready. 72% of consumers already say they are comfortable shopping around the world. Some consumers remain hesitant about shopping globally, but card protection (50%), positive reviews (43%), and delivery guarantees (34%) increase their confidence. , says people will shop around the world.
Plan to go cashless
This is an aspiration for nearly every small business surveyed, with 95% of entrepreneurs saying they plan to go cashless “someday.” However, some small businesses are more ambitious, with 35% recognizing accepting new payment formats as an opportunity to attract new customers and 51% increasing mobile payments in the next two years. We plan to accept the use of “cashless'' and move to a “cashless'' system. apps (55%), mobile wallets (50%), contactless cards (36%).
further marketing
To attract new customers, business owners surveyed are increasing their social media presence (44%), offering new products or services (41%), and investing more in overall marketing (40%). %).
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new consumer mindset
No matter who your customers are or where they are, it's important to understand how they think today. 82% of shoppers have already used digital payments for an average of 58% of their purchases, 55% of consumers plan to increase their use of digital payment tools, and 40% plan to go cashless. The answer is yes. Furthermore, 59% of consumers abandoned their shopping carts when they found out that digital payments were not available.
Another factor driving customer sales is sustainability. 68% of consumers say a company's sustainability efforts have at least “some influence” on their decision to buy from a company. And 77% say they would pay more for sustainable products and services.
In addition to shopping globally, consumers surveyed plan to invest their time and money locally. Almost half (49%) say they will support the local economy and shop more at local businesses in the next year, and 44% say they plan to make personal connections in their local community. If you run a brick-and-mortar retail store, consumers expect to accept contactless cards (57%), mobile payment apps (49%), and mobile wallets (49%) .
Digital payments are also making local customers tip more frequently, with 77% of consumers saying they have noticed more stores accepting (and even encouraging) the use of digital payments for tipping. 43% of them said they felt more pressure to tip.
Small businesses and new technology
In addition to adding digital payment solutions, 91% of SMBs are likely to consider using automation or AI services such as ChatGPT in the next 12 months “to improve their business relative to competitors.” The answer is “at least to some extent.”
For most executives surveyed, implementing new technology solutions is a somewhat scary concept. Just 33% said they were “completely confident” in their ability to evolve their business and “keep up with changes in technology and consumer preferences.” Far more people (67%) say they don't feel confident tackling these tasks.
Many small and medium-sized businesses surveyed are also concerned about cyber-attacks, with 67% saying they do not believe their companies can fully recover from fraud or cyber-attacks.
SMEs are 'not too small to go global'
The Small Business Administration (SBA) encourages entrepreneurs to do business internationally, stressing that small businesses are “not too small to go global.” The SBA says small businesses that engage in exports are “more likely to increase profits, expand their operations, experience higher growth rates, and hire more employees.”
The agency added that international sales are a smart way to diversify its customer base while protecting its business from the “ups and downs” of the U.S. market.
About the author
Rieva Lesonsky is CEO of GrowBiz Media. SmallBusinessCurrents.com I've been covering small business and entrepreneurship for more than 30 years.Sign up with her to get more insight into her business trends free ocean current Newsletter.
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