Small Businesses Expect Spending to Increase in 2013
A third of the smallest and largest companies surveyed said they expected spending on Web-related promotion to rise this year.More than 60 percent of businesses of all sizes expect their spending to increase in 2013, including nearly 70 percent of businesses with 25-49 employees, according to Pex Card’s first Benchmark Expense Survey aimed at charting the expenses of small and midsize businesses (SMBs). Conducted in December 2012, the survey found more than a third of all respondents attributed that anticipated increase to spending associated with growing their businesses. The largest companies (25+ employees) spend the least in sales and marketing as a portion of total expense (26 percent), however, advertising represents nearly 50 percent of their total sales and marketing expense – significantly higher than the 34 percent mark across all companies. A third of the smallest and largest companies surveyed said they expected spending on Web-related promotion, including website maintenance, registering domain name, site creation, development, upgrades, and other costs, to rise this year. Staffing expense, including sales staff compensation and incentives, health care insurance and workers compensation, represented half of all itemized expenses. Companies with more than 10 but less than 25 employees spend the greatest portion of their total expense on staffing at 57 percent.
Equipment and office supply costs represented 15 percent of expenses across all segments, however the report noted it represents 20 percent of the expense budgets for the smallest companies. Insurance costs accounted for 14 percent of total expenses, and the relative burden differs significantly across company size, representing 17 percent of expenditures for the largest companies, 9 percent for midsize firms and 12 percent for the smallest businesses surveyed.