Financial Services for Small Businesses in the U.S.
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Small business is hot. There are nearly 26 million small businesses (companies with 500 employees or fewer) in the United States and more small business births every day. With over $9 trillion in revenues and over $2 trillion in assets, financial services for small businesses in the U.S. are rich in opportunities. Small businesses produce anywhere from $300 billion to over $350 billion in financial service and product revenues annually, including $120 billion to $200 billion in banking revenues and $137 billion in insurance premiums. Beyond credit, payments, cash management, payroll processing, treasury services and trade finance, small business owners have a wide variety of personal banking needs that represent a tremendous opportunity for financial services providers. Commercial banks, community banks, credit unions, credit card companies, insurance companies’ equipment leasing companies, brokerages and financial advisors all look to gain traction in this highly competitive market.
But the market is highly fragmented by size, type, ownership characteristics, industry and geography. It is a churning market where half the owners of established businesses may retire in the next decade, and where 10% of all small businesses close each year only to be replaced by a slightly bigger crop of new entrants. Moreover, the rising generations of Gen X and Gen Y entrepreneurs have different needs and expectations than their Boomer counterparts. It is also a highly personal market where 74% have no employees, 87% of employer firms have fewer than five employees and the owners’ personal finances are often aligned with the business’s finances.
Financial Services for Small Businesses in the U.S. focuses on the size and segmentation of those 26 million U.S. small businesses. It looks at the characteristics of small business owners examining segment by segment their use of financial products and services, attitudes and unmet needs. Competitive profiles of the major players -- card companies, banks and non-bank entities -- provide insight into their strategies, recent activity and future plans, while data from Simmons Market Research Bureau paints a picture of small business owner attitudes and use of financial products. The report also looks at products and services initiatives and examines advertising, marketing and channel strategies.
The information in Financial Services for Small Businesses in the U.S. is based on both primary and secondary research. Primary research involved extensive in-depth interviews with industry, marketing and public relations executives within the banking, retail and credit card markets and consultants to the industry, including American Express, MasterCard, Visa, JPMorganChase, PNC Bank, Advanta, Commerce, and Wells Fargo. It also includes interviews with experts at Financial Institutions Consulting, OxxFord Information Technologies, ShareBuilder and Strategic Planning & Marketing (UK). Secondary research entailed data gathering from relevant trade, business, and government sources, including company literature, analyst presentations, annual reports and 10(k) filings, and white papers. Permission was also graciously granted to Packaged Facts to use data from BusinessWeek Research Services, Financial Institutions Consulting, MarketStance, Oxxford Information Technologies, Retail Bank International, ShareBuilder and Synovate. Consumer data was obtained from Simmons Market Research Bureau’s Fall 2006 National Consumer Study. Media spending data was obtained from TNS Media Intelligence.
About the Author
An expert in primary research, Té Revesz is the principal of Revesz International and Kentera Associates. She has conducted thousands of in-depth interviews with business, political and labor experts around the world. She was featured in Super Searchers Go to the Source as one of the U.S.’s top primary researchers. Prior to founding Kentera Associates, Té headed the Healthcare and Industrial Practices of FIND/SVP’s Strategic Consulting and Research Group and was its International Practice Coordinator. She was also a Director of FIND’s Signia Partners division. Before joining FIND, Té served at Business International as Director of North American Publications, Editor-In-Chief of its global newsletter, and helped create BI’s global risk assessment product. She also worked at Prudential-Bache’s financial planning group and at Citibank’s Washington Representative Office.
What You’ll Get in this Report
Financial Services for Small Businesses in the U.S. makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that The U.S. Small Business Market for Financial Services offers.
Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.