Global SMEs are increasingly optimistic about their future business prospects, according to new research from Alibaba.com, a leading platform for business-to-business (B2B) e-commerce.
Based on a study of over 2,000 SME decision-makers across France, Germany, the UK and the US conducted from 27th-30th August 2024, Alibaba.com’s Global SME Confidence Index highlights:
- 69% of SME decision-makers are more positive about their business growth opportunities when compared to six months ago.
- SMEs in Germany are the most optimistic – 74% of those surveyed are more positive about their business growth opportunities when compared to six months ago – while 65% of SMEs in France said the same.
- Plans for new and diverse product offerings are fueling these levels of business optimism, with nearly half (45%) of global SMES planning to launch one to two new product lines in the next 12 months.
Yet, SMEs’ positive outlook for Q4 2024 and beyond is hampered by certain challenges. Inflationary pressures top the list at 38% of the vote, followed by challenges in marketing and customer acquisition (31%). A quarter of global SMEs (25%) cited supply chain/sourcing issues and stock availability as the biggest challenge facing their business over the next year.
To overcome these challenges, global SMEs are turning to online sourcing solutions, with more than half of those surveyed (52%) working with online B2B marketplaces to source new, exciting or innovative products. In addition, more than half (56%) are planning to use social media, followed by their company’s own website (50%), digital advertising (43%), cloud-based services (28%) and finally artificial intelligence (AI) tools including image search (26%). AI is perceived as a significant business opportunity amongst SMEs, with nearly a quarter (24%) describing its full integration as a key focus in the next three to five years.
Our research highlights strong growth in optimism amongst SMEs across the world, as they embrace digital sourcing channels and look to enhance their product offerings. SMEs in key global markets are united by the opportunities presented by the integration of AI, and with more than half of global SMEs planning to use social media to stay competitive, it’s clear that ambitious businesses are increasingly turning to digital tools and platforms.
– Kuo Zhang, President, Alibaba.com
The Alibaba.com Global SME Confidence Index marks the launch of Super September, Alibaba.com’s month-long, flagship online trade show which aims to help buyers source new products just in time for the holiday season. This year, within one week since the start of the event, the number of orders on the platform increased by 69% compared to the same time last year.
Super September connects more than 48 million buyers and 200,000 suppliers from around the world to help them discover new products, services and possibilities to grow their business.
During the event, business buyers around the world can access new and exciting products with on-time delivery, as well as quality suppliers showcasing their factories and product lines through livestreaming technology and virtual reality (VR) show rooms. Through its technology platform, Alibaba.com brings B2B buyers and global suppliers together more efficiently and cost-effectively, ultimately improving margins and aiding business growth.
Super September is now live at Alibaba.com and runs until 30 September 2024.
