Small businesses, big impact
Hello again! It’s Access Granted Newsletter, our monthly roundup of the latest news in Identity and security. With so much noise out there, we’re here to surface the best so you can skip the rest.
Today’s topic > What’s shaking in the world of SMBs, or small-and-midsize businesses. Next week (April 28 – May 4) is National Small Business Week, a celebration of companies with fewer than 500 employees. These small orgs are tackling plenty of big challenges, from building awareness to balancing costs with growth. Which tactics are helping them thrive? Let’s dig in.
SMBs by the numbers. First, some facts. Nearly all American businesses (99.9%, or 33 million) are classified as small, according to government stats. SMBs in the U.S. employ more than 60 million people and represent 43.5% of the nation’s GDP. In other words, they may not be huge, but together SMBs have an outsized impact on the economy.
Challenges abound. Survival is uncertain for any business, but SMBs face plenty of unique headwinds. Forbes rounds up the reasons, like running out of money, inadequate market demand, and fluctuating costs. No wonder @Slack recently found that 32% of SMBs are worried they’ll shut down by the end of 2024 — and more than a million probably will.
Core functionality is a top priority. So what are today’s SMBs focusing on to survive? Fundamentally, the fundamentals. A new report from Okta finds more and more SMBs adopting tools for the essential work of work: signing contracts, stocking offices, and building brands. Legal apps like @LegalZoom, @DocuSign, and @Rocket Lawyer all saw big surges in usage by SMBs, as did apps for designing content and buying business supplies.
Doubling down on security. Okta’s report also finds SMBs are prioritizing security. They’re embracing more VPN/firewall apps for safer network access, and compliance tools to stay aligned with regulations. And they’re leaning into stronger user authentication, as adoption of higher-assurance factors like security keys and biometrics rose double digits year over year. Here’s a handy four-step guide for any SMBs out there looking to boost their own security.
Looking for an edge. Most SMBs don’t want to stay small forever. To grow, they need to stand out from the crowd through innovation and execution. Identity has become a key way for SMBs to differentiate themselves by delivering better experiences for users and employees. Automation is another popular tactic for SMBs looking to work faster and more efficiently. (And when you’re a small company, speed definitely matters.)
The bottom line. Today’s growing companies face lots of hurdles. The SMBs that embrace the right tools and tactics stand the best chance of thriving — and maybe even becoming tomorrow’s enterprise titans. For more data-driven insights on small businesses today, check out Small Businesses (SMBs) at Work 2024.