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SMB Business Perspectives:
2011 Results and 2012 Projections
November 2011
www.zoomerang.com
Overview and Methodology
www.zoomerang.com
Objective –
Obtain a deeper view of business projections from small to mid-sized businesses (SMBs) for 2012 compared to 2011.
Approach –
Zoomerang distributed a survey to SMB decision makers over a four day period, from November 3-7, 2011.
Results –
In total, 1,003 SMB decision makers (e.g. founders, managers, etc.) completed the survey providing insights into their
2011 business results and 2012 projections.
Insights –
Economy
- Of those surveyed, a majority (61%) stated that their business had been negatively impacted by the economy, yet
40% remain optimistic or very optimistic about their business heading into 2012.
- Half (50%) of respondents failed to meet their business goals in 2011, however, only 19% have plans to diversify
their business in 2012.
Business Growth
- The biggest challenge for SMBs in 2011 was customer/client growth despite the highest hiring rate in the business
development sector. Similarly, 60% of SMBs plan to focus investments and staffing in the same sector in 2012.
- Of the SMBs creating new staffing positions, filling an existing position or promoting employees, the most promising
business sectors for job applicants are social media and business development.
- In 2012, nearly half (45%) of SMBs plan to invest money in marketing and communications. Similarly, a third (33%)
of respondents project using advertising/marketing or social media to attract new customers.
Social Media
- In 2012, more than a third (40%) of SMB respondents plan to use social media, yet only a quarter (25%) expressed
discomfort with using social tools.
- The top three reasons SMBs use social networks are: affordability, access to customers and word-of-mouth/referral.
2
Annual Projection Comparisons
www.zoomerang.com 3
Key Takeaways –
Overall Summary of 2011 Projections – (*previously completed survey findings from 2010) –
The majority of SMBs were optimistic about the coming year and were confident that the economy was
beginning to stabilize and improve, predicting higher sales and staff hiring growth.
Overall Summary of 2012 Projections –
The majority of SMBs were neutral to positive about the economy and their business heading into 2012.
Compared to 2011, SMBs are more hesitant to hire additional staff. Even though most see the value of social
media for customer relations, most SMBs do not understand the tools or feel comfortable using them.
Insights –
Economy
– 2011: As compared to 2010, the SMBs surveyed were optimistic about the economic outlook with 72%
believing it would improve or stay the same.
– 2012: When considering business performance heading into 2012, 40% of SMBs are optimistic
or very optimistic. Of those surveyed, 40% of SMBs agree that small business is the backbone of the
economy.
Business Growth
– 2011: Compared to the previous year, 89% of SMBs planned to grow or maintain their staff.
– 2012: Less than a third of SMBs plan to hire more employees in 2012 compared to
the previous year.
Social Media
– 2011: Social media adoption was slow, with only 33% of the SMB respondents planning to use social
media.
– 2012: Of those surveyed, 40% of the SMBs plan to use social media in 2012, despite a quarter of
respondents stating they do not feel comfortable using social tools.
2011: Business Goals Half (50%) of the SMBs surveyed are falling short of meeting 2011 business
goals, whereas 43% of SMBs are on track or have already exceeded most goals
www.zoomerang.com 4
50%
36%
7% 7%
Is your business on track to meet most or all of its 2011 goals?
No, we are falling short of meeting most or all of our 2011 business goals (50%)
Yes, we are on track to meet most or all of our 2011 business goals (36%)
Yes, we have already met and plan to exceed most or all of our 2011 business goals (7%)
I don’t know (7%)
2011: Business Challenges SMBs were challenged most by customer/client growth and retention as well as
budget constraints
www.zoomerang.com 5
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Outsourcing manpower/materials/labor
Internal employee growth
Internal employee retention
Technology innovations
Other
Communications/Marketing/PR
Local competition
Staying in business
Customer or client retention
Budget constraints
Customer or client growth
4%
8%
9%
9%
9%
11%
20%
27%
32%
32%
44%
What were your business’ biggest challenges in 2011? (Select all that apply)
2011: SMB Business Performance Most SMBs did not experience growth or loss in the most common business
sectors
www.zoomerang.com 6
Administration
Executive team
Human Resources
Product team
Accounting
IT
Communications/Marketing/Sales
Business development
7%
7%
8%
8%
8%
9%
14%
14%
65%
53%
49%
45%
57%
53%
46%
44%
12%
13%
13%
15%
20%
11%
23%
27%
16%
27%
30%
31%
16%
27%
17%
15%
How would you describe the performance of each area of your business in 2011?
Experienced Growth Stayed the Same Experienced Loss N/A
2011: Economic Impact In 2011, more than half (61%) of the SMBs surveyed were negatively affected by
the economy
www.zoomerang.com 7
61% 11%
25%
3%
How has the U.S. economy affected your business in 2011?
Negatively (61%)
Positively (11%)
Has not affected (25%)
I don’t know (3%)
* In 2011, 40% of SMB respondents experienced limitations or constraints as a result of U.S.
administration policy changes.
www.zoomerang.com 8
Aff
ects
of
2011 E
co
no
my
Plan to hire in 2012
2011: U.S. Economy Impact and Hiring Among the responses, there was a direct correlation between businesses
impacted by the economy and hiring projections for 2012.
2011: U.S. Economy Impact and Hiring Among the responses, there was a direct correlation between businesses
impacted by the economy and hiring projections for 2012.
Affects of 2011 U.S. Economy on 2012 hiring plans
2011: Employees More than three quarters of SMBs did not hire or reduce number of employees in
the most common business sectors
www.zoomerang.com 9
Accounting
Human Resources
Administration
IT
Executive team
Business development
Product team
Communications/Marketing/Sales
4%
4%
5%
5%
5%
6%
6%
7%
85%
82%
82%
80%
83%
81%
79%
80%
11%
14%
13%
14%
12%
13%
15%
13%
Did you add more employees, reduce the number of employees or keep the number of employees the same
in each department during 2011?
Added More Kept Same Number Reduced Number
2012: Business Plans and Scope More than half of SMBs do not plan to diversify (64%) or narrow (74%) the scope
of their business next year suggests ‘business as usual’ in 2012
www.zoomerang.com 10
No 64%
Yes 19%
I don’t know 17%
Do you have plans to diversify your business in 2012?
No 74%
Yes 14%
I don’t know 12%
Do you have plans to narrow your business scope in 2012?
2012: Business Performance More than half (64%) of SMBs have optimistic or neutral business performance
projections for 2012, and a large majority (60%) will focus on customer/client
growth
www.zoomerang.com 11
8%
32%
32%
21%
7%
How do you feel about your business performance
heading into 2012?
Very Optimistic (8%) Optimistic (32%)
Neutral/ Don't Know (32%) Pessimistic (21%)
Very Pessimistic (7%) 0% 10% 20% 30% 40% 50% 60% 70%
Other
Geographic expansion
Internal employee growth
Internal employee retention
Local competition
Technology innovations
Communications/Marketing/PR
Budget constraints
Product or service expansion
Customer or client retention
Customer or client growth
6%
9%
11%
11%
13%
15%
21%
21%
21%
38%
60%
Which areas will you focus on improving in 2012?
(Select all that apply)
2012: Investments The top three common business sectors SMBs plan to invest in are projected to
be marketing, sales and technology/IT
www.zoomerang.com 12
0% 5% 10% 15% 20% 25% 30% 35%
Land
Other, please specify
Office Space
Physical Infrastructure
Product Research and Development
Communications
Staffing
Capital Improvements
Education
None, will not invest
Product / Service Expansion
Technology/IT
Sales
Marketing
4%
5%
6%
8%
9%
11%
11%
11%
13%
19%
20%
22%
28%
35%
In which areas will your business invest money in 2012? (Select all that apply)
2012: Employee Growth Nearly two thirds (65%) of SMBs do not plan to hire more employees in 2012 as
compared to 2011. Of those hiring, the majority plan to add 1-5 employees
www.zoomerang.com 13
No 65%
Yes 20%
I don’t know 15%
Does your business plan on hiring more employees in
2012 than in 2011?
44%
19%
13%
14%
4% 6%
How many employees will your business hire in 2012?
(Include P/T, F/T and temp employment)
1 to 5 (44%) 6 to 10 (19%) 11 to 25 (13%)
26 to 50 (14%) 51 to 100 (4%) Over 100 (6%)
2012: Customers The top three ways SMBs plan to attract customers in 2012 are word-of-mouth,
repeat business and advertising/marketing
www.zoomerang.com 14
25%
25%
22%
13%
11%
4%
What will be your primary source of getting customers in 2012? (Select one)
Word-of-mouth (25%)
Repeat business (25%)
Advertising and marketing (22%)
Networking (13%)
Social media (11%)
Other (4%)
2012: Social Media Next year, SMBs are evenly split on whether or not they will use social media
tools
www.zoomerang.com 15
Yes 40%
No 40%
I don't know 20%
Will your company will use social media in 2012?
2012: Social Media The primary reason cited by SMBs for using social media is affordability. The
primary reason cited by SMBs for not using social media is perceived lack of
value
www.zoomerang.com 16
0% 10% 20% 30% 40% 50% 60% 70%
Other
There’s a strong measurable impact on our business
Our business promotes social media in other types of marketing
I am personally comfortable using social media
This type of word-of-mouth is a great referral source
Our customers use social media
It is affordable
3%
20%
23%
44%
55%
56%
66%
Primary reasons for using (Select all that apply)
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Other
It is not affordable
Our business invests in other types of marketing
There’s no way to measure the impact on our business
I am personally uncomfortable using social media
Our customers don’t use social media
Our business relies on word-of-mouth as a referral source
I don’t see the value
7%
11%
12%
14%
25%
26%
37%
41%
Primary reasons for NOT using (Select all that apply)
2012: Social Media and Generational Use Of those surveyed, the respondents’ age correlates with their planned use of
social media tools in 2012
www.zoomerang.com 17
75 or older
65 to 74 years old
55 to 64 years old
45 to 54 years old
35 to 44 years old
25 to 34 years old
18 to 24 years old
1%
5%
17%
22%
24%
26%
5%
6%
16%
26%
23%
16%
11%
2%
5%
15%
17%
32%
20%
11%
1%
2012 Planned Social Media Usage & Age of Respondent
Yes, we plan to use social media in 2012 No, we DO NOT plan to use social media in 2012 Don't Know
www.zoomerang.com
Demographics & Appendix
18
Top 10 Business Locations Breakdown of the top 10 states represented among respondents
www.zoomerang.com
State Percentage
California 11%
Florida 8%
Illinois 6%
Texas 6%
New York 5%
Pennsylvania 5%
Ohio 4%
Arizona 3%
Georgia 3%
Indiana 3%
19
Business Size / Decision-Makers
www.zoomerang.com 20
27%
26% 13%
13%
13%
5% 4%
For which of the following would you consider yourself a
primary decision maker?
Operations (27%)
Administration (26%)
Communication/Marketing/Sales (13%)
Financial (13%)
Technology (13%)
Human Resources (5%)
Research and Development (4%)
39%
25%
6%
6%
6%
6% 5%
6%
Including yourself, how many are employed at your company?
1 (self-employed: 39%) 2 to 10 (25%)
11 to 25 (6%) 26 to 50 (6%)
51 to 100 (6%) 101 to 250 (6%)
251 to 500 (5%) 501 to 1,000 (6%)
Respondent’s Gender and Age
www.zoomerang.com
Gender Percentage Male 50%
Female 50%
21
Age Range Percentage 25 or younger 8%
26 - 35 20%
36 - 45 21%
46 - 55 18%
56 - 65 19%
Over 65 15%
Male 50% Female 50%
18-24 3% 25-34
17%
35-44 20%
45-54 24%
55-64 21%
65-74 11%
75+ 4%