Small Business: Needs Versus Reality

Small businesses are small in size, but not in number. The old Mom-and-Pop stores of yesteryear have given birth to a vast array of modest-sized companies and sole proprietorships that - in terms of sheer quantity - have come to dominate the business landscape. And these small businesses have special financial needs that banks too often ignore.

Small Business: Needs versus Reality examines the identity, financial requirements and banking preferences of this profitable and often-loyal business segment. It also offers suggestions and tactics the financial-services industry should pursue to best serve small businesses.

In order to accommodate these businesses, bankers must first understand the traits and characteristics associated with the owners. This white paper gives updated statistical information on the diverse demographics of small businesses, as well as the goals and expectations of their owners. Citing numerous studies conducted by a variety of financial-oriented publications and organizations, Small Business: Needs versus Reality details what small businesses require to be successful, and what they are looking for in terms of financial assistance.

The white paper then offers a variety of ways for banks to meet the needs of these businesses. It examines such topics as Internet banking, cross-selling, credit-card usage, payroll-processing services and credit-scoring decision systems. Because of time and financial restraints, small-business owners often are in serious need of financial planning, and Small Business: Needs versus Reality provides suggestions for banks to capitalize on that opportunity.

Studies have shown that small businesses generate more than $200 billion in financial-services revenue per year and can be up to 10 times more profitable than the average retail customer. And with more than $2 trillion in assets and liabilities up for grabs, these businesses are an attractive customer for banks. The key is for financial institutions to know how to attract small businesses. Small Business: Needs versus Reality helps show the way.