Only 37 percent of small businesses say they are highly successful at coming up
with new ideas to grow their business compared to 47 percent last year, according
to a new report from Network Solutions.
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“Creative thinking and the determination to push the limits on innovation
are the hallmark characteristics of entrepreneurs,” says Tim Kelly, CEO,
Network Solutions, an advocate of small business success.
“Having a strong presence on the Web gives business owners a great launch pad
to showcase their innovative spirit and build brand awareness for the products
and services they offer.”
Small business owners who are highly successful at marketing and innovation
differ from the majority:
*39% consider Internet technology to be important to their business
*26% use online advertising, more than other businesses (18%)
*72% expect to make a profit from using social media
“The ongoing recession has certainly pushed our limits on marketing and
innovative thinking. It’s difficult to stay inspired and optimistic when the
economy remains stagnant,” says Heidi Kallett, owner of The Dandelion Patch,
a stationary and gift retail business.
“Technology is a huge ally for small businesses. I stay ahead of the curve by
leveraging the Internet and social media to stay connected with my customer
base and also maintain an online presence for Dandelion Patch. The internet
has no doubt helped me to form personal relationships with my customers.”
More than two-thirds (67%) of small businesses have or are likely to have a
website in two years. Instead of replacing website investments, social media
is increasing them. Among small businesses that use social media, 30 percent
are likely to increase their investment in their website because of social media,
and another 60 percent do not plan to change their website investment in the
next year.
While six months ago small businesses were focused on the goal of attracting
leads with social media (71% vs. 73% in Dec 2009), they now look to social media
simply to build awareness of their organizations (77% vs. 56% Dec 2009). They
are also more likely to use social media to stay in touch with their current
customers (62%) than six months ago (46%).
The number of companies conducting business globally has dropped from
19% to 14% since December 2009, but companies buying supplies from outside
the country has seen an increase from 11% to 18% since December 2009. Also
there is a positive correlation between small businesses using social media and
the income they generate from multiple countries.
“Small business owners who hit roadblocks on marketing and innovation should
turn to social media,” said Janet Wagner, director of the Center for Excellence
in Service at the Smith School, at the University of Maryland.“
“Tools such as Twitter and Facebook have made it faster, cheaper, and easier
for even the smallest business to communicate with its customers and get
ideas for new products and services. Technology-savvy small business owners
who leverage the Internet will be in a strong position to compete going forward.”
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