Abstract
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.
Report Methodology
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.
View Cart
