Close

Technology

National Survey of Small Businesses Reveals Growing Technology Adoption

by Stacey Soble | July 26, 2019
1/3

Show All
2/3

Show All
3/3

Show All
1/3
Slider
2/3
Slider
3/3
Slider

DaySmart Software, one of the leading provider of business management software supporting small business growth, today released new research reports on technology trends impacting U.S. small businesses. The national study examined how small business owners are leveraging technology to grow their businesses and the challenges they’re facing along the way.

While the findings indicate that U.S. small businesses are growing – 63 percent of respondents increased their sales from 2017-2018 – many still worry about the challenges to running and growing their operations. According to the report, the top five challenges that U.S. small business owners face are making enough money, controlling costs, finding new customers, marketing to prospective or current customers and managing their time.

Small Businesses Turn to Technology

It’s not surprising that many small business owners are turning to technology to solve these challenges and are succeeding in doing so. More than half (51 percent) have adopted business management software. Benefits associated with deploying business management software include reduced manual effort and paperwork (61 percent), increased customer satisfaction (49 percent) and improved work/life balance (48 percent). Of the respondents who use business management software, 42 percent recognize the benefits of cloud-based products, while 38 percent still prefer on-premise software.

Additionally, respondents who use business management software report making more money than those that don’t. When asked to share their annual revenues, 73 percent of respondents who use business management software reported making more than $100,000, compared to 60 percent of respondents who do not use such software.

The survey also found that technology adoption may be generational. Fifty-one percent of small business owners who use software are 25-44 years old, while only 37 percent of respondents who do not use software fall into that same age bracket. Inversely, the majority of small business owners (63 percent) who do not use software are 45 years or older.

According to the findings, the number one barrier to software adoption for U.S. small businesses is a lack of budget resources, as indicated by 26 percent of respondents. Other barriers include a lack of internal expertise (23 percent), concerns around cybersecurity risks (20 percent) and an unclear understanding of which tools are required to solve business problems (16 percent).

Top Areas of Investment to Drive Sales

As small businesses invest more in technology, their areas of focus speak to the priorities of consumers and the market. The top areas of investment in 2019 for small business owners are marketing software (36 percent), POS systems (35 percent) and data security (25 percent). In addition to technology investments, small business owners are prioritizing marketing efforts to improve sales in 2019. Fifty-three percent indicated that they plan to invest more in social media, while 39 percent said they are experimenting with new marketing channels. On top of investing in marketing, 27 percent of respondents indicated that they are hiring more employees to improve sales in 2019.

“The digitization of the way we work and live has forced small business owners to rethink their manual methods – but that’s not always an easy task,” says Jeff Dickerson, DaySmart CEO. “This survey validates the importance of having a holistic software solution that can make the transition to automated and digitized operations more efficient, and ultimately help small businesses grow faster than ever before.” 

Research Reports

The small business report is available for download on the DaySmart website. The research was also segmented to look at the pet services industry, as well as the salon/spa market.

Survey Methodology

DaySmart Software partnered with research firm Researchscape International to survey a total of 1,763 U.S. small business owners in March and April 2019. Respondents are key decision-makers and full or partial owners of businesses with fewer than 100 employees, with the majority of respondents (62 percent) having 0-9 employees.

About DaySmart Software: Makers of the popular and award-winning Salon Iris, Orchid, 123Pet and Inkbook software, DaySmart is one of the leading provider of business management tools designed to make it easier for entrepreneurs to run and grow their businesses. DaySmart desktop and cloud apps are purpose-built for the salon, spa, pet and tattoo industries, and backed by a U.S.-based support team that is dedicated to client success. Based in Ann Arbor, Michigan, DaySmart has been a small business champion since 1999. The company has been recognized on the Inc. 5000 list for eight consecutive years.

The 2019 Technology Guide

Technology

The 2019 Technology Guide

by Laurel Nelson

Technology plays a strong hand in how successful owners lead their salons, and now the options go far beyong appointment scheduling. This helpful guide introduce you to a number of digital tools to add to your managment toolbox.

5 Salon Trends And Best Practices

5 Salon Trends And Best Practices

by Staff

Millennium Systems International’s John Harms is an experienced leader—for 33 years he has pioneered salon management software. Harms understands how important it is to keep innovating and adapting in order to be successful in any business, and here he reflects on his own leadership strategies and company innovations that help salons grow.

Find out why over 400,000 subscribers love our newsletters

Videos

In our video section, watch salon professionals in action, listen to the advice of salon business experts, and tour inside the world’s top salons.

Does Your Salon Technology Provide A Human Touch?

Does Your Salon Technology Provide A Human Touch?

by Staff

Functionality, integration, experience—no question these are all critical in a salon technology product. But the truth is, for many salon owners who didn’t grow up in a world of coding and don’t speak tech language, it’s the human connection that’s most important.

5 Myths About Online Booking…Busted!

5 Myths About Online Booking…Busted!

by Staff

If you’ve considered adding online booking to your website, now’s the time to take the plunge. So what’s holding you back from incorporating this must-have feature? If it’s one of these common myths, read on for the truth behind them.

Will this client post a five-star review for her balayage service? The answer matters for many...

Are You Raking In 5-Star Reviews? If Not, Here’s How.

by Staff

You drive by that new restaurant in town and wonder if you should give it a try. Your first step? Grabbing your phone and checking the place’s online reviews. If they’re good, you go ahead and make a reservation. If not, you probably pass. And guess what? This is exactly how prospective clients are assessing your salon.

Load More