Veem, the online payment network for small-to-midsize businesses, today announced the release of its quarterly report, “State of Small Business”. The report, which surveyed over 960 American small business owners, focused on their outlook on the economy in 2021, top challenges faced as a business owner in the past year, and perspective on various aspects of their banking and payments experience.
Below are some key findings:
- Small business owners are split in their economic outlook – 50% report stronger confidence in the economy in 2021, while 42% are unsure. Their economic outlook echoes their confidence in their ability to pay off small business loans – 51% expect to repay their loans while 33% are unsure.
- 54.5% of small business owners reported that financial challenges were the biggest challenge they faced during the pandemic. The factors that changed the most during the pandemic are speed (36%) and affordability (43%) of their banking and payments services.
- High fees (47%) and lack of customization for SMB needs (40%) were the top reported banking experience pain points for small business owners.
- Small business owners still lean on traditional payment methods such as bank wires and checks to make and receive payments, but the pandemic may accelerate the decline in use of these services. Nearly half (46%) of small business owners say they sometimes use bank wires, but 36% of small business owners “never” use checks to make payments.
- New banking and payment technology like cryptocurrency and neobanks are not a common part of the small business owners’ experience yet: over half of small business owners do not plan to accept Bitcoin as a payment method, and do not plan to pay for expenses using Bitcoin. However, many small business owners say they are unsure about these technologies. This shows an opportunity to shift their perspective after more education about how they could benefit from this type of payment partner.
“After a difficult year where small business owners had to ensure that every dollar they spent worked towards their bottom line, these leaders are frustrated by clear points in their banking and payments experience – particularly around fees. However, many are keeping an optimistic outlook in economic recovery as vaccinations continue to increase around the country,” said Marwan Forzley, CEO of Veem. “It will be exciting to see how new technologies open up opportunities and create solutions for small business owners, and we’re rooting for these resilient businesses to make it through all the challenges they’ve faced for a more positive 2021.”
The latest survey is the fourth installment of the State of Small Business report series. To download “State of Small Business: Q1 Edition,” please visit here.
Veem simplifies the way businesses send and receive funds globally. Trusted by more than 260,000 businesses in over 100 countries, Veem offers a suite of payment services to establish and strengthen partner and supplier relationships. Veem’s secure, trackable transactions combined with seamless integrations with popular business applications enable businesses to save time and money, while mitigating risk generally associated with international funds transfers. Veem is licensed and regulated in each country and state it serves.