News and Trends / Small Firms' Tech Spending Reflects Their Optimism

Small Firms' Tech Spending Reflects Their Optimism

By Dennis McCafferty | Posted 2015-12-08

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Small Firms' Tech Spending Reflects Their Optimism

Small-business owners are optimistic about the economy and their business outlook, and their tech investments reflect that sentiment.
Tech Spend

More than seven in 10 (71%) of small-business owners say they invest in IT upgrades at least once a year.
How Small Businesses Use Technology

While more than half (54%) use new technologies to accept payments, about half (50%) use new technologies to connect to employees and 45% use new technologies to track inventory.
Other Technology Applications

Small-business owners are tech-savvy in other ways. A little more than four in 10 (41%) use new technologies to optimize their Websites, and 23% said they’ve created an app for customers.
Security Concerns in a Technology World

59% said they are concerned about protecting customers’ proprietary data. About two-thirds (66%) have taken steps to be very prepared for a cyber-attack.
Upward Trajectory

78% plan to grow their businesses over the next five years, up from 67% who were looking to do so in 2014.
Sales Surge

72% expect their revenue to increase in the upcoming year, up from 62% who said the same thing a year ago.
Staff Surge

67% plan to hire more employees over the next year, up from 51% who said so in 2014.
National Economic Outlook

56% said the national economy will improve over the next 12 months, up from 45% who felt this way a year ago.
Local Economic Outlook

62% predicted that their local economy would improve over the next 12 months, up from 50% who anticipated this last year.
Cash Flow

35% said they plan to apply for a loan in the next year, up from 24% who intended to do this in 2014.
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A significant number of small-business owners—driven by increasing optimism about the economy and their own growth prospects—are investing in a broad range of tech advancements, according to a recent survey from Bank of America. The "Small-Business Owner Report" indicates that the majority of owners are upgrading their IT systems at least once a year. The majority are acquiring new tech to find better ways to accept customer payment, as well as connect to employees. They're also interested in improving their Websites while more effectively tracking inventory. In addition, technology is augmenting "their ability to serve customers, with customer interactions increasing over the past five years via email, social media and online chat," according to an introductory letter in the report from Robb Hilson, who oversees small business for Bank of America. "This change represents an exciting time for small businesses—they are evolving at a rapid pace," he said. Findings also cover survey respondents’ growing confidence with regard to revenue, staffing and other economic-related trends. More than 1,000 U.S. small-business owners took part in the research. Here's a look at key findings.