The United States is marching a slow but steady climb to its financial recovery and the small and midsize business (SMB) market has a crucial role to play. At present, the USA is struggling with 7.2 percent unemployment and needs to boost consumer and investor sentiments. The U.S. SMB market, which contributes to 50 percent of the total employment of the country and 42 percent of the non-agriculture GDP, will be instrumental in ticking down unemployment and surging up the growth figures.
The SMBs in the county have the potential to lead the wave of optimism for a strong recovery in 2014. The retail, professional services, construction and healthcare sectors, which form more than 50 percent of the SMB revenue, are the growth drivers in the SMB landscape.
U.S. SMBs boast an outstanding level of technology infrastructure with 23 million SMBs having broadband connectivity, 90 percent SMBs with PC and smartphone ownership and 65 percent accessing data through tablets. The figures are suggestive of an addressable amount of in-country IT opportunities, which will further increase with the growth of the SMB sector. At present, the total addressable IT opportunity with U.S. SMBs stands at $263 billion.
With a keen adoption of technological innovations and a massive revenue contribution from midsize firms, U.S. SMBs are set to grow $575 billion additional revenue and create 23 million additional employment opportunities by 2020. Overall U.S. SMBs are on a fast-paced growth path. A total of 28 million SMBs operating in the United States pose collective revenue of $2.1 trillion.
Economists are predicting the current U.S. GDP to pick up in the foreseeable future. Being responsible for generating half of the country’s employment, U.S. SMBs will have a greater part to play, especially in creating new jobs and boosting government spending in the coming years.
Click here to download the report of the recent Zinnov study, “SMB Landscape of the United States of America.”
Praveen Bhadada, director, market expansion, Zinnov Management Consulting, a director (global consulting) at Zinnov, has been engaged with Fortune 500 companies in the technology space with respect to their globalization strategy. He is also responsible for representing Zinnov in the Asia-Pacific region. He has expertise in cloud computing, enterprise mobility, SMB / SME landscape, industry partnerships, globalization strategy, go-to-market strategy, peer group benchmarking, cost analysis, location analysis, engagement model analysis and total rewards analysis.