“AI and machine learning tools” are unsurprisingly a top three tech spending priority among SMBs of all sizes, but overall productivity tools and security stand out as most important in Bredin’s latest state of the SMB report, which surveyed some 500 SMB decision makers.
Security was of particular importance to mid-sized firms with 100 to 1,000 employees, named as the top tech spending priority by that cohort (51%) followed closely by AI/ML tools (50%) and CRM (40%). Customer relation was also crucial for small businesses with 20 to 99 workers, as CRM (37%) was those respondents’ number one priority, with AI/ML (35%) and “automation and productivity tools” (33%) rounding out their top three.
Among very small firms (1 to 19 employees), some type of hardware refresh (30%) was the top spending priority, narrowly beating out e-commerce solutions (28%) and AI/ML (27%).
Inflation remains the top business challenge among respondents, yet most firms remain optimistic about revenue and likewise optimistic about what technology can do for business. That optimism is greatest among mid-sized firms, of which 78% plan to increase technology spending during the next 12 months. About two-thirds of small businesses expect to increase tech spending, while less that half (43%) of very small businesses plan to do the same.
That said, one-third of small to mid-sized businesses are moving slower with their purchasing decisions compared to last year, as buying committees expand, according to the Bredin survey. Cost pressures were the biggest source of friction in the procurement process for SMBs.
As for channel partners, 39% of midsized businesses with 100 to 1,000 workers have increased their reliance on third-party providers and vendors, while a quarter of small businesses employing 1 to 19 workers having done the same.
