02 20 2014

02 20 2014

Small Businesses Missing Out on Mobile Technology, Sales

Despite the fact that mobile technology, including the increasingly pervasive presence of smartphones and tablets among the public at large, continues to become more popular around the globe, many small and medium business (SMB) owners are disregarding the trend, a new report has found.

According to research commissioned by hibu – a website development company – and conducted by Impact Research, SMBs may be missing out on around $1 trillion a year by neglecting to make their payment processing systems compatible with mobile technology. Without these advancements, consumers often encounter trouble with websites while attempting to shop, making it more likely that individuals will leave a page before completing a purchase.

Study finds significant mobile issues among small businesses

The trillion dollar problem – equivalent to the annual GDP of the state of New York – is exacerbated by the fact that many businesses that are aware of these losses are still not acting aggressively to get up to speed with mobile. The study, in which Impact Research gathered responses from 900 entrepreneurs and IT leaders regarding their business’s websites and plans for mobile technology, found 56 percent of U.S. adults already use a smartphone. However, 91 percent of SMBs around the country are not prepared for the surge in mobile adoption. At the same time, these small businesses expect mobile sales to increase by 630 percent in 2014, propelling total mobile transaction revenue to reach $90 billion this year alone.

Meanwhile, online sales in general continue to grow. The value of U.S. online sales to small and medium businesses is currently estimated at $2.2 trillion. Furthermore, the current value of U.S. mobile revenues to these same businesses has now reached an estimated $12 billion. As this number is expected to increase so rapidly and significantly before year’s end, entrepreneurs who have declined to jump on the mobile bandwagon may expect to face trouble in keeping up with competitors.

SMB owners who were surveyed seem to be aware of this problem, although they may not be taking action to counter the issue. Whereas 32 percent of U.S. SMBs said business owners without mobile compatible websites will be “left behind,” just 15 percent of the same respondents said they plan on upgrading to newer technology over the next 12-18 months. This delay may result in rising problems for members of the business community as they struggle to drive in traffic to their sites in a consistently competitive world.

Although it was not made explicitly clear why these business owners may be putting off upgrades, one possible reason may be that tech advancements are often costly. However, even though these expenses can quickly add up, there are options for business owners looking to maintain a competitive edge. Instead of purchasing new equipment up front, SMB leaders can invest instead in equipment leasing options from lenders like National Funding, who can provide up to date business equipment that can help companies stay ahead of technological trends.

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Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

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To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

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I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

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