How are things different for small business owners than they were five years ago, when the economic crisis started to unfold and social media gained a foothold with Facebook? Constant Contact surveyed small businesses to find out. Their answers provide an inside look at their evolving challenges and opportunities…

1. Small Businesses
Then & Now
1

2. How are things different for small business owners than they
were five years ago, when the economic crisis started to unfold
and social media gained a foothold with Facebook? Constant
Contact surveyed small businesses to find out. Their answers
provide an inside look at their evolving challenges and
opportunities…

3. 3
No one said it would be easy.
Harder, 59%
About the
same, 30%
Easier, 12%
When asked if they feel it’s easier or harder to run a small business
today than it was five years ago, here’s what they said:

4. “Five years ago I felt like I was in a marathon, but not yet
running. We were doing good, but I felt I had hit the wall
with market share. I was a little old fashioned, but decided
to try using email marketing. Once we mastered that, we
started to explore what was next on Facebook and Twitter.
Now social media is critical to our success. I’m even
teaching bookbinding classes real time via Skype. “
-Michael Chrisman, Bookbinders Workshop
4

5. Why do you think it’s harder to run a business today?
Challenges Abound
5
0%
10%
20%
30%
40%
50%
60%
Economy
has hit my
business
hard
Harder to
keep pace
with
technology
More direct
competitors
More
competition
from big
business
Other Harder to
attract good
employees
Harder to
secure
loans
55%
49%
40%
34%
19% 19% 18%

6. Yes, 51%
No, 30%
Not sure, 15%
Not locally
owned or
operated,
4%
Do you feel that being locally owned and operated is a
major reason why your customers support your business
today?
Buy Local
“People want to shop local,
they want to eat local. People
come to our store specifically
looking for Minnesota beers.”
-Bryan Buser, The Four Firkins
Some good news - the buy local movement is gaining steam.
6

7. Biggest changes in how you do
business today vs. five years ago
“Business today can’t be scared by
change. Sure, it can be frustrating
sometimes, but businesses really need to
embrace change and find out what’s new
and where technology or best practices
for using tools is going.”
-Seth Tower, GunnDesign
Change is Inevitable
7
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% 84%
59%
27% 26%
22% 21%
16%
11%
1%

8. “We’re using about the
same amount of digital
marketing tools as five
years ago, we’re just using
them differently. Five years
ago we just had Facebook
and Twitter accounts, but
today we’re making a point
to post every day.”
-Bryan Buser, The Four
Firkins
Marketing tools used today vs. five years ago
Social Media Explodes
8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
64%
10%
20%
6%
21%
12%
6%
2%
12%
2%
22%
98%
87%
44%
38% 36%
31%
24% 23%
20%
8%
0.50%
5 years ago
Today

9. 0%
10%
20%
30%
40%
50%
60%
70%
80%
Finding new
customers
Having enough
time
Retaining existing
customers
78%
61%
49%
75%
65%
58%
5 years ago
Today
Top business concerns five years ago vs. today
Business Concerns
Their primary concerns have remained virtually the same.
9

10. Easier, 30%
Harder,
35%
About the
same, 35%
“We’re always concerned about finding
new customers because in our industry
you never know when a current customer
or project will go away. It’s a revolving
door, so we can never stand still and
always need to be pushing forward. As a
result, we’re always looking at ways to
engage with our current customers so
they can tell others about the great work
we’ve done for them.”
Seth Tower, GunnDesign
Do you think it is harder or easier to find
customers today versus five years ago?
Customer Insights
10

11. Why is it harder to find customers today versus five
years ago?
The Customer Dilemma
11
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Customers
pay less
attention to
marketing
More direct
competition
More
expensive to
do marketing
Can't keep
pace with all
of the online
marketing
tools
None of
these
49%
45%
23% 23%
20%

12. 12

13. 0%
10%
20%
30%
40%
50%
60%
More
affordable
online
marketing tools
Time-saving
marketing tools
Customers
respond to
marketing
None of these Less direct
competition
53%
40%
28%
22%
5%
Why is it easier to find customers today versus five
years ago?
Finding Customers with Tech Tools
13

14. 14

15. 0%
10%
20%
30%
40%
50%
Yes No Not sure
49%
38%
13%
Are your customers spending more money at your
business today than five years ago?
Spending Patterns
15

16. 0%
10%
20%
30%
40%
50%
60%
70%
Yes No Not Sure
63%
22%
16%
Do you feel your customers have higher
expectations today than they did five years
ago?
“Customers are more demanding.
They’re seeking fresh marketing
formats and ideas, and they expect
a fast turn-around. Like everyone,
really, customers want more to
maximize their spend.”
-Debra Farrell, Diverse Resources
Customer Demands
16

17. Great Expectations
Why do you feel customers have higher expectations
today than they did five years ago?
17
0%
10%
20%
30%
40%
50%
60%
70%
80%
Expect more
value
Expect better
customer
service
Expect more
deals and
coupons
Expect better
quality
goods/services
Other
71%
48%
44% 42%
14%

18. How has the volume of new customers changed?
Increased, 55%
Decreased, 26%
Stayed the same,
19%
More is Better
18

19. 0%
10%
20%
30%
40%
50%
60%
Thriving, with
more
customers
and/or more
employees
Holding steady Possibly closed Don't know
58%
26%
8% 7%
Where do you see your business five years from now?
Optimism Reigns
Despite the challenges they face, small businesses
maintain a positive outlook.
19

20. This Constant Contact-sponsored survey was administered in May
of 2013 to 917 small business participants in the Constant Contact
Small Biz Council – a research panel of US small businesses
recruited from the Constant Contact customer base. This survey
was fielded to those panel members who have been in a decision-
making role in a small business for at least five years, and they
were asked their opinions on how operating a small business today
differs than five years ago. This survey is part of an ongoing series
about the state of small businesses and the ways they connect
with, and grow, their audiences. Results include responses from
respondents across a range of business-to-business and business-
to-consumer industries.
About the Survey