Report: Majority of SMB’s Outgrow Technology or Overpay for Unused Features

Ninety-three percent of businesses with 10 to 100 employees (SMB’s) say they have outgrown at least some of their digital tools or are paying for features of an Enterprise Resource Planning system that they don’t use. In fact, 79% of mid-sized businesses report they are underserved by digital tools designed for small businesses, yet large enterprise digital tools are overkill.

Check Out These Resources

• Do you need a business bank account for your online business? Take a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits. ^[sponsored]
• Boost your social media engagement with Publer. Learn how you can save time writing engaging content faster with AI. ^[sponsored]
• Could your online business use capital for growth? Here is a primer on revenue-based loans, and how they work.

The findings come from a new survey of mid-sized businesses released today from Intuit, the global technology platform that makes QuickBooks, TurboTax, Mint, Credit Karma, and Mailchimp.

SMB’s Struggle to Find Technology Middle Ground

QuickBooks surveyed 1,000 business owners with 10 to 100 employees in an attempt to understand how mid-sized businesses are leveraging technology to grow.  For 49%, purchasing an Enterprise Resource Planning (ERP) system was a path to growth. Yet, nearly half of those businesses (47%) say they don’t use all of the ERP capabilities and feel they overpaid for solutions. Eighty-four percent of businesses report their current ERP system is too large to satisfy their specific business needs and 32% of the system’s capabilities go unused. A lack of customization is one of the top disadvantages to their current system as noted by nearly half of businesses surveyed (47%).

Almost half (48%) of mid-sized businesses with 10 to 100 employees say that they aren’t currently using digital tools designed for a business of their size.

“We know how well QuickBooks meets the needs of small businesses, but we also know that businesses’ needs grow as they become more complex, So while they may not require an ERP system, they are looking for an efficient and customizable solution for their specific needs.”

“This is where QuickBooks Online Advanced has a unique opportunity to help growing businesses that were either underserved by their old tools – or overserved by enterprise-level solutions because Advanced can integrate additional features into our industry standard QuickBooks solution, delivering all the functionality mid-sized businesses need at a fraction of the price of a traditional ERP,”

Kelly Vincent, Vice President of Mid-Market Small Business at Quickbooks Intuit.

While technology adoption is on the rise, understanding what tools are right-sized for a particular business is critical for future growth. These survey findings reinforce the need for digital tools that grow with the changing needs of SMB’s and demonstrate the market opportunity for QuickBooks Online Advanced in serving the small business mid-market, said Vincent.

Other Key Findings for SMB’s: 

• Excess capabilities are a waste of money: About 2 in 5 businesses cite cost as one of the disadvantages to their current ERP system (41%). 
• Apps are appealing, but as part of an integrated suite: On average small business owners use 19 apps to manage their operations, yet 60% prefer an all-in-one suite of business tools over buying individual digital tools.

To read the full survey findings, just click here, or to read the additional mid-market related survey data click here.