Sage’s annual ‘Small Business, Big Opportunity’ survey reveals that despite rising costs and economic uncertainty, America’s small and medium-sized businesses (SMBs) demonstrate a story of resilience and ambition, powered by digital transformation.

The annual survey, featuring insights from over 12,000 small and medium-sized business (SMBs) leaders worldwide, reveals a significant surge in business confidence among US SMBs, with 89% of leaders expressing optimism in their business success – up from 80% in 2023 and outpacing the global average of 86%.

This surge in confidence is driven by a bold commitment to technology, particularly in the realm of artificial intelligence (AI). For these businesses, digital tools are more than upgrades—they’re lifelines that streamline operations, delight customers, and pave the way for sustainable growth.

In a country where nearly all SMBs (95%) recognize their essential role in driving growth, their optimism shines particularly bright. This year’s survey findings paint a picture of progress:

• High Confidence Amid Growth: Growth and productivity improvements over the past year bolster the confidence of 89% of US SMB leaders. Nearly 4 in 5 are satisfied with their productivity gains—a testament to the power of innovation.
  
  
• Technology Investments are More Important than Ever: Nearly three-quarters (73%) of US SMBs increased digital investments in the past year, with 22% increasing their investment by 80% or more. These investments have led to measurable improvements in operational efficiency, with almost half of respondents (49%) citing efficiency gains as a key factor for their confidence in technology as a growth driver. Additionally, 69% report that investing in tech has enabled them to spend more time on higher-value and creative tasks, while 61% note that digital technology is essential for increasing revenue.
  
  
• Powering Growth with AI: AI adoption is booming, with 64% of US SMBs leveraging AI tools to stay ahead. For many, AI isn’t a luxury; it’s a necessity. These tools drive growth, cut costs, and elevate customer experiences, with 55% of SMB leaders crediting AI for their business success—far above the global average of 46%.

Despite their optimism, rising costs continue to impact US SMBs, with 48% reporting increased operational expenses over the past year and 42% listing financial stability as a primary concern – highlighting the need for government support to help overcome these challenges. US business leaders identify tax relief (48%) and improved access to affordable financing (42%) as the most effective areas where government support could help.

“The strength and confidence of America’s SMBs are a testament to their resilience and ambition,” said Mark Hickman, Managing Director, North America at Sage. “In the face of challenges, they are investing in technology to boost productivity and drive innovation, setting the stage for sustained growth. At Sage, we’re proud to support them on this journey and remain focused on making it easier for SMBs to succeed.”

As SMBs in the US navigate a continuously evolving landscape, Sage remains dedicated to amplifying their voices and collaborating with partners and policymakers to create an environment that supports their growth. This report reflects Sage’s ongoing commitment to championing the needs and priorities of SMBs and supporting their journey toward sustainable, technology-driven growth.

For more information on Sage’s “Small Business, Big Opportunity” 2024 report and to access the full findings, visit: https://www.sage.com/en-gb/company/digital-newsroom/.