Five trends that will drive small business success in 2023
Posted: Mon Dec 23, 2024 6:49 am
When it comes to money in our personal lives, we are used to immediacy, efficiency, convenience and security, whether paying a bill or managing our finances. However, the same cannot always be said for small businesses, for whom the ability to manage money effortlessly and securely is increasingly critical to their success. Fortunately, digital innovation is bridging this gap.
Digitalization is enabling micro and small businesses (MSEs) to pay and receive payments faster and more securely than ever before, and is dramatically reshaping the way entrepreneurs build and run their businesses. Small businesses are a vital component of our global economy as theyThey cover 90% of businessesandmore than 50% of jobs worldwide, and Visa's priority is to help them thrive every step of the way.
In 2023, the “consumerization of corporate finance” will greatly benefit small businesses as they work to meet the pressures and opportunities of an uncertain economic environment.
As we turn the page to a new year, here are five trends we believe will be critical for small businesses this year.
Small Businesses Can Win the War for Talent with Heart
Small businesses have inherent disadvantages when it comes to attracting how to get spain number for whatsapp top talent—a lack of a company gym or cafeterias that offer free meals and free transportation or parking. But they can and should compete in other ways. For example, they can offer employees better work-life balance and a greater sense of personal purpose—two qualities that a Gallup poll found are nearly as important to potential employees as pay and benefits. 1 SMBs would do well to ensure that every talent touchpoint—website, social media, marketing materials—drives a personal, professional, and streamlined experience that reflects their values. Customer testimonials, employee stories, and more will help SMBs differentiate themselves from competitors, both large and small, 2 and attract a talent pool that remains highly competitive.
Closing the digital equity gap will continue to drive competitiveness for SMEs
The World Economic Forum predicts that 70% of new value created this decade will be based on digitally enabled technologies. 3 With livelihoods and well-being increasingly determined by participation in the digital economy, this rapid transition can offer opportunities for everyone, everywhere. We need to include small businesses in this conversation so that people can pay conveniently, easily and securely, and so that businesses can reach new customers, operate more efficiently and grow. This will also increase the resilience of businesses, whether in times of economic downturn or a major external shock such as the pandemic. Notably, in the early days of the pandemic in 2020, Visa set a goal of digitally enabling 50 million micro and small businesses by the end of 2023 to support their recovery from the pandemic. I am pleased to report that we have already helped digitally enable more than 40 million of such businesses. 4
SMEs will need to prioritize trust and security
Small businesses, because of their close contact, community orientation, and accessibility, are the most trusted institutions in countries like the U.S. According to a Gallup poll, 68% of respondents rated small businesses as trustworthy, compared to 17% of large companies. 5 However, trust is fragile and needs to be cultivated. Security breaches can have long-lasting consequences for a business, and because of this perception of vulnerability, small businesses can find themselves at significantly higher risk of cyberattacks. To safeguard themselves and their customers, SMEs should prioritize ensuring they are using the right security technology. Tokenized payments and industry authentication standards like EMV®3-D Secure, for example, can help reduce fraud by protecting the payment environment both online and at physical points of sale.
A 360-Degree Approach to Digitalization Will Be a Key Asset for SMBs
To fully reap the benefits of digital commerce, how a small business pays its vendors, suppliers, and partners is just as important as how it receives payments from customers. While consumer payments may get most of the attention, digital solutions have made it easier to automate and track payments to the third-party partners that help keep a small business running. In 2023, I expect to see SMBs adapting to the “consumerization of B2B payments.” SMBs will continue to prepare for e-commerce and online payments, but they will also focus more on adopting financial tools and apps that can help with planning, cash flow, budgeting, expense tracking, and tax preparation, among other things. As these apps become increasingly integrated, small business owners will be able to run their business largely from the palm of their hand.
Agility will be key in (another) year of uncertainty
As in 2022, high inflation, labor constraints, and supply chain challenges will be a factor for all businesses, including SMBs, in 2023. SMBs will need to be agile to succeed. According to Visa research, 86% of small business leaders surveyed cite economic uncertainty as one of their most common stressors. Cloud computing, artificial intelligence (AI), and digital financial tools can help SMBs navigate continued uncertainty. If this sounds far-fetched, recent research has shown that 44% of small business leaders surveyed are integrating AI, preparing for it, or planning to do so.closely following the trend. 6 Although it is still early days, I am personally excited to see how AI can be applied inChatGPTto real-world scenarios for SMEs. If some of this seems overwhelming, it's important to know that acquirers and payment facilitators—who specialize in supporting the nuanced needs of small businesses—are there to help make it easier.
Digitalization is enabling micro and small businesses (MSEs) to pay and receive payments faster and more securely than ever before, and is dramatically reshaping the way entrepreneurs build and run their businesses. Small businesses are a vital component of our global economy as theyThey cover 90% of businessesandmore than 50% of jobs worldwide, and Visa's priority is to help them thrive every step of the way.
In 2023, the “consumerization of corporate finance” will greatly benefit small businesses as they work to meet the pressures and opportunities of an uncertain economic environment.
As we turn the page to a new year, here are five trends we believe will be critical for small businesses this year.
Small Businesses Can Win the War for Talent with Heart
Small businesses have inherent disadvantages when it comes to attracting how to get spain number for whatsapp top talent—a lack of a company gym or cafeterias that offer free meals and free transportation or parking. But they can and should compete in other ways. For example, they can offer employees better work-life balance and a greater sense of personal purpose—two qualities that a Gallup poll found are nearly as important to potential employees as pay and benefits. 1 SMBs would do well to ensure that every talent touchpoint—website, social media, marketing materials—drives a personal, professional, and streamlined experience that reflects their values. Customer testimonials, employee stories, and more will help SMBs differentiate themselves from competitors, both large and small, 2 and attract a talent pool that remains highly competitive.
Closing the digital equity gap will continue to drive competitiveness for SMEs
The World Economic Forum predicts that 70% of new value created this decade will be based on digitally enabled technologies. 3 With livelihoods and well-being increasingly determined by participation in the digital economy, this rapid transition can offer opportunities for everyone, everywhere. We need to include small businesses in this conversation so that people can pay conveniently, easily and securely, and so that businesses can reach new customers, operate more efficiently and grow. This will also increase the resilience of businesses, whether in times of economic downturn or a major external shock such as the pandemic. Notably, in the early days of the pandemic in 2020, Visa set a goal of digitally enabling 50 million micro and small businesses by the end of 2023 to support their recovery from the pandemic. I am pleased to report that we have already helped digitally enable more than 40 million of such businesses. 4
SMEs will need to prioritize trust and security
Small businesses, because of their close contact, community orientation, and accessibility, are the most trusted institutions in countries like the U.S. According to a Gallup poll, 68% of respondents rated small businesses as trustworthy, compared to 17% of large companies. 5 However, trust is fragile and needs to be cultivated. Security breaches can have long-lasting consequences for a business, and because of this perception of vulnerability, small businesses can find themselves at significantly higher risk of cyberattacks. To safeguard themselves and their customers, SMEs should prioritize ensuring they are using the right security technology. Tokenized payments and industry authentication standards like EMV®3-D Secure, for example, can help reduce fraud by protecting the payment environment both online and at physical points of sale.
A 360-Degree Approach to Digitalization Will Be a Key Asset for SMBs
To fully reap the benefits of digital commerce, how a small business pays its vendors, suppliers, and partners is just as important as how it receives payments from customers. While consumer payments may get most of the attention, digital solutions have made it easier to automate and track payments to the third-party partners that help keep a small business running. In 2023, I expect to see SMBs adapting to the “consumerization of B2B payments.” SMBs will continue to prepare for e-commerce and online payments, but they will also focus more on adopting financial tools and apps that can help with planning, cash flow, budgeting, expense tracking, and tax preparation, among other things. As these apps become increasingly integrated, small business owners will be able to run their business largely from the palm of their hand.
Agility will be key in (another) year of uncertainty
As in 2022, high inflation, labor constraints, and supply chain challenges will be a factor for all businesses, including SMBs, in 2023. SMBs will need to be agile to succeed. According to Visa research, 86% of small business leaders surveyed cite economic uncertainty as one of their most common stressors. Cloud computing, artificial intelligence (AI), and digital financial tools can help SMBs navigate continued uncertainty. If this sounds far-fetched, recent research has shown that 44% of small business leaders surveyed are integrating AI, preparing for it, or planning to do so.closely following the trend. 6 Although it is still early days, I am personally excited to see how AI can be applied inChatGPTto real-world scenarios for SMEs. If some of this seems overwhelming, it's important to know that acquirers and payment facilitators—who specialize in supporting the nuanced needs of small businesses—are there to help make it easier.