Pipedrive recently released its annual State of Sales and Marketing: The Economy Review 2022/23, providing insights into global sales and revenue trends. The study paints a paradoxical picture: although 63% of respondents report that their companies grew last year, the percentage of year-on-year growth has decreased from 71% in 2021.
Small businesses have been hit the hardest, and a discernable correlation between company size and employee success was identified. The data reveals that small business employees are 14% less likely to meet their sales goals, and these businesses have a 10% lower probability of experiencing company revenue growth compared to larger firms. Conversely, larger corporations have an 8% higher chance of regularly exceeding sales targets.
However, economic hardships can pose significant risks. Companies that reduced budgets and downsized teams saw their success rates drop by up to 27%.
Dominic Allon, CEO of Pipedrive, emphasized the crucial role of small businesses in the global economy, stating, “…to thrive in times of uncertainty, it’s crucial to lay a strong foundation for success. By implementing a robust technology infrastructure, small businesses can unlock invaluable insights, streamline operations, and trim overall costs.” Allon sees technology as a lifeline that enables businesses to weather economic storms and emerge stronger.
The study also found key areas for small businesses to invest in during economic volatility. Companies prioritizing technology investments experienced an 18% increase in expectations for business growth in 2023. In contrast, businesses that neglected technology were twice as likely to worry about individual workloads, with over 40% expressing concerns.
Other key findings include:
- An overwhelming 80% of sales and marketing professionals remain optimistic about the future. Businesses are increasing investments in 2022 compared to previous years, signaling a commitment to growth and development despite uncertain economic conditions.
- Employees in companies implementing budget cuts or downsized teams have heightened concerns about personal and organizational futures. Reduced spending on employee benefits also correlated with increased worries, highlighting the impact of financial decisions on employee morale and long-term prospects.
- 47% of respondents draw strength primarily from their own positive mindset. However, CEOs and founders gain encouragement from believing in their company’s vision. A strong correlation surfaces between support from managers and colleagues, optimism, and achieving targets.
- Those whose companies invested in technology display 18% higher hopes for company growth and reduced apprehensions about mounting workloads.
This report is a crucial reminder that while small businesses face unique challenges, they can leverage technology to build resilience, streamline operations, and foster growth, even in volatile economic conditions.
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