Businesses With Strong Digital Strategies Show More Resilience

Confidence increasing for small and mid-size businesses

You might be surprised to read this, but for a large majority of small and mid-size businesses (SMBs), the future looks bright. In the February 2021 Main Street Index from CBIZ, 74% of businesses with fewer than 100 employees reported a positive or very positive level of business confidence for 2021.¹Additional data is starting to show there are some solid reasons for that confidence.

While the number of businesses that closed in the last year is significant, it appears to be less than initially feared at the onset of the pandemic. According to the Federal Reserve, the number of small firms and establishment exits between March 2020 and February 2021 increased by only about 100,000 compared to historically normal levels.² At the same time, entrepreneurs created many new businesses. Census data indicates there were 4.3 million new employer identification number applications in 2020, 24% more than in 2019.³

This is good news for the economy overall, as almost all net new jobs, as well as 20% of gross job creation, comes from newly created businesses.⁴ This is partly why SMBs have long been a source of economic resilience, especially during recessions.

Business confidence for 2021 (<100 employees)

Very positive: 11.1%

Positive: 63.1%

Negative 21.9%

Very Negative 3.8%

^{CBIZ Main Street Index}

Technology is critical to success, not just survival

As SMBs continue to recover, it's time to take stock of how successful companies not only dealt with immediate needs but also laid the groundwork to survive and even thrive through future disruptions. A couple of specific changes and adaptations have proven to create the greatest resilience among SMBs.

According to the U.S. Chamber of Commerce, technology has been a critical lifeline for small businesses this past year, with small business owners leveraging digital capabilities to reach consumers, market their products, empower employee collaboration, and grow their business.⁵ SMBs that made investments in technology, specifically in digital transformation (DX) technologies, were better able to maintain a level of operations previously not possible. Not only were these companies able to keep operating effectively, many were able to shift their businesses to attract new customer segments, roll out new products, or establish new digital channels to deliver services.

Technology also helped SMBs adapt to new work-from-home requirements. A July 2020 study by the SMB Group found that 67% of businesses surveyed had already established work-from-home programs or expanded modest work-from-home programs put in place prior to COVID-19.⁶ A survey by the NSBA reported that 38% of businesses would continue telecommuting for the foreseeable future.⁷

Top Strategic Business Priorities for SMBs to Pursue in the Next 12 months

Drive customer interactions: 55%

Drive growth of customer base: 51%

Drive employee productivity: 48%

Drive cross-functional collaboration: 37%

^{CBIZ Main Street Index}

How to prepare for the future

Most consumers expect companies to accelerate their digital initiatives in response to COVID-19. And SMB leaders are listening and taking a number of technology-dependent actions.

Technologies that SMB leaders from growing or stagnant/declining companies have adopted to prepare for future crises:

As the shift toward hybrid work environments becomes more permanent, SMBs clearly also need to ensure they are providing their employees with the tools and technology they need to work from anywhere. According to research conducted in 2020 by Cisco and IDC, enabling remote work is the top investment priority for small businesses (50-499 employees).⁸

However, one of the constraints most often cited by SMBs is finding the right technology to meet their needs. Having the right partner can help, one that not only understands your business and the technologies you need, but that getting the most from these solutions takes time and a commitment to be there as your business changes.  

As businesses refine their new hybrid work solutions, it will be critical to have access to the right services and solutions that provide small businesses with the flexibility needed to lay a solid foundation for the future. 

To learn more about how T-Mobile for Business can empower your employees to work the way they want from almost anywhere, including offerings like Facebook Advertising on Us, visit: