Small businesses that use data to help make decisions are more strongly growing revenue as compared to their counterparts who use data on a limited basis, according to new research from Exact and Pb7. The findings show that businesses across the U.S. and Europe who lean on data insights reported revenue growth of 21% in the last financial year, as compared to 9% for businesses reporting limited use of data. Data-led businesses also experienced a net profit margin of 22%, versus 14% achieved by small businesses in which data has a limited role.
These findings are detailed in a new report released from Exact, a global frontrunner in business software in the cloud for small- and medium-sized businesses. The company's second annual global research report, "Small Business Barometer 2016," examines the business and industry challenges that small wholesale distributors, manufacturers, accountants and professional services firms face on a daily basis, and to what extent they are using technology to combat these hurdles. Pb7 surveyed small businesses in the U.S., Belgium, France, Germany, the Netherlands, Spain, and the U.K. to create the report.
Key findings from U.S. small businesses across industries include:
- 57% of U.S. small businesses are finding themselves up against new digital competitors
- In the face of strong competitive pressure, 21% of those surveyed in the U.S. anticipate being out of business in five years if they don't radically change their business models, yet only 2% are currently taking steps to make radical changes
- Only 12% of small businesses are using new technology to hold on to market share - with 24% turning to delivering more customer value to compete