How Does the Mid and Long Tail Feel About the Economy
By David Feldman at 10 December, 2008, 4:07 am
When analysts discuss the economy, the majority of the talk centers around the key financial strongholds such as banking and finance. However it is also important to consider the mid and long tail portion of the marketplace to get a well-rounded view of the economy. Though wary about current economic conditions, small and medium-sized businesses (SMBs) are hopeful that business will grow over the next 12 months, according to a new survey released today by the Computing Technology Industry Association (CompTIA). The survey of 772 SMBs in the United States, Canada and United Kingdom found that 85 percent plan to hire new employees over the next 12 months; 54 percent anticipate revenue growth of 10 percent or more; and 40 percent plan to add new business locations.
SMBs are a bit more cautious when it comes to information technology and communications spending. The CompTIA study found that 51 percent of SMBs surveyed intend to increase their tech spending in the next 12 months; and 49 percent expect their tech spending to remain flat or to decline. By comparison, 62 percent of SMBs said in last year’s study they planned to boost spending, while 38 percent said it would remain flat or decline.
“Small and mid-sized businesses have made significant investments in technology over the past dozen years,” said Todd Thibodeaux, president and chief executive officer, CompTIA. “In the past, tech spending might have been one of the first line items slashed in a tough economy. Today, SMBs are savvier because they rely on technology for an increasing amount of their core business operations. It’s encouraging to see that the majority SMBs plan to maintain, if not increase, current tech spending during this time of economic uncertainty.”
New technology investments will support SMBs expectations of growth over the next 12 months. On average, SMBs expect to add eight new employees during that time frame; while 40 percent plan to open between one and five new locations.
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