DENVER, CO – December 12, 2011 - According to the latest Small Business Pulse Survey results released by PaySimple, the majority of small business owners have a bright outlook when it comes to cash flow in 2012. But despite their optimism, 80% of small businesses are still plagued by late payments.
“It’s encouraging that so many small businesses anticipate cash flow improvements in 2012, but the rate of late payments is quite alarming” said Eric Remer, CEO of PaySimple. “When it comes to payment challenges, keeping track of everything is a struggle for small businesses overall, which seems to directly coincide with small business demand for ease of use in software solutions. For business owners, if a software solution isn’t easy to use, it simply won’t be able to help them manage their business and solve their challenges.”
Small Business Challenges & Cash Flow Outlook:
What’s keeping small business owners up at night? Finding new business and retaining customers are reported as top business challenges:
But, for now, cash flow worries seem to be a thing of the past:
Small Business Payments Trends:
Late payments are still a struggle for a majority of small businesses:
How are these small businesses handling their late payments?
What are the biggest challenges small businesses are seeing overall when it comes to payments?
Old ways of collecting payments are still popular with small businesses including cash and check payments via mail and in person.
With all the hype recently on mobile payments, it seems they have yet to become a reality for small businesses:
Trends in Managing a Small Business:
When asked where they turn to for advice, the internet was the hot spot, with getting advice from other small business owners coming in at a close second:
To manage their business, the most popular software solutions used by small businesses are accounting and email marketing:
Not many small businesses were planning to purchase software in the upcoming 12 months:
What matters to small businesses when evaluating software?
Further confirming the importance of ease of use, 43% of small businesses reported that their biggest frustration with previous software was that it was too hard to use.
What mobile devices are small businesses using for their business? Reported usage of iPhones and Android smart phones were almost evenly split:
This PaySimple-sponsored survey was administered in October 2011 to small business owners and employees. Results include responses from 223 respondents across a range of business-to-business and business-to-consumer industries. Of the respondents, 100 percent are located in the U.S. and 65 percent of these organizations have 4 or less employees. 63 percent have less than $250k in annual revenues and 53 percent have been in business for more than 5 years. Surveys are subject to errors, including sampling coverage error, recording error, and respondent error.