- Ongoing investments in technology and talent are critical to staying competitive, according to CIT survey
- Investing in technology cited as a top driver of growth over the past 12 months
- Current workforces have the technology skills to keep pace with digital transformation, but hiring tech-savvy employees remains a focus
NEW YORK, Nov. 18, 2019 /PRNewswire/ -- Small business executives reveal their top priorities for investment and growth in a new survey conducted by The Harris Poll1 and sponsored by CIT Group Inc. (CIT) that explores the intersection of technology and talent in driving business success.
More than one in three small business executives (37%) plan to invest even more in their businesses during the next 12 months compared to the past 12 months, the survey reports. Cloud computing systems (52%), customer relationship management tools (48%) and cyber security/data privacy (47%) are key priorities for technology investments over the next 12 months, those planning to invest say.
Earlier technology investments have already paid off for small businesses, with 42% crediting tech spending as a driver of growth over the past 12 months, along with providing exceptional customer service (60%) and offering new products (48%).
Additionally, most small business executives agree that continuous technological investment is a business need (84%) and that it is critical in helping their business to attract and retain customers (79%).
Looking at the year ahead
For small businesses, the most important financial business needs over the next 12 months will be optimizing cash flow (43%) and increasing working capital (43%), highlighting the importance of high-quality financing services.
"Understanding these key insights and trends can help small businesses maintain a competitive edge and also drive growth," said Ken Martin, managing director of CIT's Small Business Solutions unit.
"We're committed to delivering the financial agility and expertise that small businesses need to thrive," Martin continued. "For example, our technology-driven solutions offer an excellent automated process that allows for a seamless financing experience. Credit decisions are delivered in as little as five minutes with funding as quickly as the same day."
How talent meets technology
Small business leaders recognize that their workforce will play a major role in implementing technology investments and addressing the risks that may come with them. While most (82%) say their current workforce has the technology skills to keep pace with digital transformation, more than two in three (69%) also say businesses need to focus on hiring tech-savvy employees as relationship building becomes less important.
"We believe at CIT that technology is only as effective as the employees that implement it and the customers that benefit from it," added Denise Menelly, executive vice president and head of Technology and Operations. "Our own successful integration of technology and talent has been instrumental in empowering both our clients and employees."
Security, privacy concerns in focus
Cyber-security and data privacy are top of mind for small business executives, as 56% say that the risk of security or data breaches are among the top three highest concerns when it comes to technological changes. Other concerns include not knowing how new technology will work with current tools or systems (41%) and not having enough capital to invest in the latest technology (32%).
Less than a third of small business executives are currently outsourcing financial aspects of their business, such as payroll (32%), credit protection (20%), talent acquisition (13%) and accounts receivables management (12%). However, as companies add more employees, it is increasingly likely that they will consider outsourcing these various services. Additionally, small businesses may also embrace a more virtual workplace and expect an increase in remote staff.
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (CIT) is a financial holding company with over a century of experience, approximately $50 billion in assets as of June 30, 2019, and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, real estate financing, equipment financing, factoring and railcar financing. CIT's consumer banking segment includes its national online bank, CIT Bank, and a Southern California branch bank, OneWest Bank. Discover more at cit.com/about.
1 The Harris Poll, on behalf of CIT, fielded an online survey from Aug. 5 to Aug. 16, 2019 among 306 U.S. small business executives. Qualified respondents were executives at companies with annual revenue less than $1 billion and 1-99 employees.
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