Small Biz Data from Intuit

Unfortunately much of my time at the Kelsey Group’s local conference yesterday and the previous day was spent in meetings in the hallway. Thank goodness Donna Bogatin was covering so much of the show. I saw Peter Horan’s keynote but missed most of the immediately following remarks from Intuit VP Steven Aldrich.

Intuit, since its acquisition of StepUp and search marketing deal with Google has become a serious entrant in the realm of small business marketing and local search — with more to come. Donna captured some of the numbers that Aldrich threw out:

While 6 million businesses are started every year, another approximately 5.6 million businesses cease operating, Aldrich reported.

For new businesses, finding customers is the biggest limiting factor to growth, Aldrich underscored, despite marketing efforts. Small businesses spend $110 billion on marketing, Aldrich noted.

Sixty percent of small businesses spent marketing dollars in the last 12 months, Aldrich said. He added that the Web is not favored by small businesses for their marketing spends: Less than 5% of small businesses’ marketing budgets are allocated for online and in the last 12 months, only 22% of small businesses marketed online.

“Think local” when you think small business, Aldrich said. Eighty percent of small businesses do 75% of their business within 50 miles.

In most of his remarks, Aldrich is using the SBA’s 499 (or fewer employees) definition of a small business. In the part of his remarks that I was present for, Aldrich acknowledged that if you used alternative definitions of “small business” the numbers were almost as large because the bulk of SMBs are at the low end of headcount (under 20, under 4 or 1).

3 Responses to “Small Biz Data from Intuit”

  1. Martin Garcia Says:

    Peter Horan is implementing a calling strategy similar to SuperPages, but his interesting point is “We will drive from the consumer perspective.” I think that’s a great starting point. I agree that the Yellow Pages and daily news services are high cost models, but small businesses trust and feel comfortable with these advertising vehicles. This reminds us as a community that they really don’t have the resources to keep with all the bidding and analytics for local online advertising. Neal Polachek, an analyst with The Kelsey Group stated: “They want to sort of dummy-down their products so that the small business gets it”.

  2. Not So-So Blog : the official blog » Blog Archive » Local search is about data Says:

    […] just read an article which reveals that in thge US 6 million new businesses are started yearly, but each year also 5,6 […]

  3. Nomadishere : Seeker of Truth » Blog Archive » links for 2007-06-16 Says:

    […] Small Biz Data from Intuit « Screenwerk Unfortunately much of my time at the Kelsey Group’s local conference yesterday and the previous day was spent in meetings in the hallway. Thank goodness Donna Bogatin was covering so much of the show. I saw Peter Horan’s keynote but missed most of the (tags: local sem search.engine.marketing) […]

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