Two research agencies have come up with divergent reports, so to speak, on the prospects of the Small and Medium Sector Enterprises in the USA under the new Government’s policies.
Analysts from American Express have spoken out on the possibilities of a positive growth curve coming for SMEs – thanks to the Donald Trump administration paving the way to accelerate growth opportunities in the sector.
Nearly 75% of the SME respondents in the survey were of the opinion that things will improve for the small scale businesses and they look forward to a positive economy picture in the short run. The observers noted that the percentage of positive responses has gone up from 64% .in 2016, to 75% this year.
However, another study by OFX, revealed that the conditions for growth of the small businesses abroad, is on the pessimistic side. Research data showed that 57% of the businessmen agreed their business prospects are better for an export drive, but the figure shows a significant dip compared to the data of last year.
In 2016, the ambition to do business overseas ran very high amongst this target group, and nearly 96% of the respondents had expressed their desire to jump at such opportunities.
SMEs gearing for growth
To nearly 82% of the audience in the small scale sector surveyed across USA, the present conditions in the American economy are pointing to smooth sailing in the immediate future, and they are targeting to access more capital for higher growth. Growth is suddenly top-priority for most SMEs, noted the AmEx report.
About 50% of the industry players are working on increasing their workforce and fewer are looking for early retirement.
“As they look to grow, business owners plan to increase capital investments, hire staff and increase usage of low cost methods like social media to attract new customers.”, says Susan Sobbott, American Express President of Global Commercial Payments
Insiders at AmEx are also sure that SMEs will thrive in the coming environment, domestically.
Looking abroad, the OFX study shows a very different story.
OFX reported that while, of the 500 US Companies in the Small Scale Sector interviewed, at least 2/3rd of the units are fast gearing up for enterprise ventures abroad, the cross-border business prospects of these players would be significantly dwindle – as time goes on.
Today, about two-thirds of American SMEs aren’t exporting, the data revealed.
However, small scale business enterprises with courage and conviction mentioned their intention to move ahead into international markets in a big way.
The key areas they would focus on, included:
- Making in-roads into new overseas markets
- Adding international vendors to their supply chain
- Hiring skilled workers from overseas markets
A majority of the respondents already have suppliers outside the U.S.
Lull, despite optimism
Despite such optimism expressed by the market, business inflow into these SME players appears to be declining, the report concluded.
With worldwide transformation taking place in the technology field, new ways and means of doing business are opening up everywhere.
New opportunities also come with their package of challenges. The emerging global scenario is not as favourable as it used to be, especially with rising instability conditions, OFX noted.
It is learned that the studies were conducted in the wake of a recent speech by the Head of US Small Business Administration at a UN Summit for SMEs.
According to the expert, “96 percent of all the world’s consumers and over three-quarters of the world’s purchasing power are outside the United States. Yet right now, only 1 percent of all America’s small businesses are exporters.”