For Small Businesses, Positive Change Is On the Horizon These three pressures building in the small-business sector are going to help jump start a revolution in how things are done.

By Chris Myers

Opinions expressed by Entrepreneur contributors are their own.

Every year, people predict something revolutionary is going to happen in the small-business space, and every year things seem to plod along as usual. Despite our best efforts, change comes slowly for the 29 million small businesses in the U.S. I'm not going to claim that this year will be any different, however, I do think that we're getting close to bucking this trend in the near future.

As the co-founder and CEO of BodeTree.com, I have the opportunity to interact directly with thousands of small business owners and am on the front lines of what's happening in the space. Over the past eight months, I've noticed several trends emerging that indicate real change is closer than ever.

Small businesses are starting to spend again.

It's no secret that small business forms backbone of the U.S. economy. They make up over 99.7 percent of all employer firms and are responsible for over 60 percent of all new job creation. Still, we're in the fifth year of a very weak recovery in which small businesses have been hit hard by tight credit markets, slow sales and limited spending.

Related: Top 5 Challenges Facing Businesses Now

Today, I believe we're finally starting to see these small businesses begin to hire and spend on technology. According to a recent Wells Fargo/Gallup Small Business Index survey, 71 percent of small businesses report they expect their financial position to improve over the next 12 months. Similarly, about a quarter of the respondents reported they intend to hire new employees, up from about 16 percent a year earlier. These businesses will be primed and ready to adopt new technology and solutions to help them manage this expected growth.

The performance gulf is growing.

Though it's too early to quantify, I've noticed a growing gap between the performance of small businesses who adopt modern technology and those who insist on dragging their feet.

Forward-thinking businesses are utilizing cheap, easy and powerful new solutions to organize their data, improve efficiency and reduce overhead. Historically, it's been difficult for outsiders to pick up on the improvements these systems provide but lately it's become obvious to those of us who are in the trenches, so to speak. I believe we're moving towards a world of technological haves and have-nots, where businesses that fail to adopt technology will have a significant and systemic disadvantage in the marketplace going forward. This performance gulf will create internal pressure for small businesses that will likely drive even more tech adoption in the future.

Banks are getting smart.

Perhaps most importantly, banks are starting to understand the need to provide a better experience for customers.

Related: 5 Ways Small Companies Can Out-Innovate Big Corporations

For the last few years, the financial technology sector has been dominated by consumer-facing solutions. Last year, we saw an explosion of credit monitoring tools, spending trackers and personal investment services. Now that the consumer segment is largely played out, banks are becoming increasingly desperate to find innovative ways to introduce financial tech to the small-business market.

This year I expect to see an explosion of innovation in the financial technology space, as banks and other financial institutions decide to do more with the volumes of data at their disposal. The small-business sector in particular is poised to benefit as it becomes safer and easier to connect real-time transaction data to third-party solutions like QuickBooks, Xero or a host of other applications. Working with banks will never be the same, as these real-time data connections drive faster decisions, more opportunities and better service for small businesses. Once the banks start utilizing these solutions as part of their lending process, widespread adoption by the small businesses they serve becomes inevitable.

Taken independently, these trends represent more of what we've come to expect from the small business sector: incremental change that builds up over time. Taken together, however, it becomes clear that the internal and external pressures building have the opportunity to lead to a revolution in how things are done.

Related: 4 Goals Every Small-Business Owner Should Set in 2015

Wavy Line
Chris Myers

CEO of BodeTree

Chris Myers is the co-founder and CEO of BodeTree, a popular web application designed to help small-business owners make better financial decisions.  

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Business News

Oscar Mayer Is Changing the Name of Its Iconic Wienermobile

The company is slamming the brakes on its wiener on wheels and rolling out a new meaty ride.

Business News

'All Hell Is Going to Break Loose': Barbara Corcoran Issues Warning About Real Estate Market, Interest Rates

The "Shark Tank" star appeared on FOX Business' "The Claman Countdown" this week.

Leadership

The Real Reason Why The Return to Office Movement is Failing is Revealed in New Study

There is a vivid sign of the disconnect between employees and their workplace, a glaring indication that companies need to revise their scripts to improve their hybrid and remote work policies.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

Subscribers Exclusive Event: Discover How These 2 Founders Turned Their Side Hustle into a Million-Dollar Lifestyle Brand

Learn how you can transform your personal brand into a thriving business empire with co-founders of The Skinny Confidential