Next Gen SMBs by the Numbers | Visa
Visa Commercial Solutions Next Gen SMBs by the Numbers
Business owners of all ages have one shared goal: the success of their business. However, the way they go about achieving that goal varies. To uncover those differences and reveal the motivations of the coveted next generation of business leaders, Visa commissioned a survey of 1,400+ SMBs.
How well do you know the up-and-comers — those aged 18-35 — shaping the new economy? Dive into the data as we answer all your questions about Next Gen SMBs.
Who are the Next Gen SMBs?
Visa research of SMB owners and decision-makers ages 18-65 reveals interesting trends and a likely correlation between the generations and business banking behavior.
Older SMBs include older Millennials (36-43), Gen X (44-59), and Boomers (60-65). Younger SMBs include Gen Z (18-26) and Young Millennials (27-35).
- Older SMBs tend to have more established businesses. 44% of older SMBs have businesses that are 10+ years old. 24% of older SMBs have businesses that are 5-9 years old. 32% of older SMBs have businesses that are less than 5 years old.
- Younger SMBs tend to have younger businesses. 51% of younger SMBs have businesses that are less than 5 years old while 37% have businesses that are 5-9 years old. Only 12% of younger SMBs have businesses that are 10+ years old.
- Older SMBs are more likely to have B2B businesses, with 37% having B2B businesses, 53% have a mix of B2B and B2C businesses, and only 10% have B2C businesses.
- Younger SMBs are more likely to have B2C businesses. 33% have B2C businesses, 53% have a mix of B2B and B2C businesses. Only 14% of younger SMBs have B2B businesses.
What are their preferences?
The key to unlocking business relationships with Next Gen SMBs is discovering what motivates them to act. Often labeled as phone-obsessed, surveyed Younger SMBs (aged 18 – 35) are actually more likely to do a larger share of their banking in person, compared to Older SMBs.
However, social media reigns supreme as their go-to source when looking for information on banking, finances, payment and acceptance methods for their businesses, with family and friends a close second followed by networking and conferences. They also differ from Older SMBs when it comes to incentives and rewards programs, with Next Gen SMBs opting for experiences in addition to practical items like cash-back rewards.
Where global differences occur
There’s often a clear delineation between Younger SMBs and Older SMBs, but what does the data tell us about banking preferences and business acumen when we compare regions?
The research includes respondents from seven countries: across the U.S., UK, France, Spain, Indonesia, South Africa and Mexico, and reveals differences between not only Next Gen and Older SMBs but also markets at different stages of development. And the disparities may not exist where you think. For example, Younger SMBs in Spain and Mexico are less likely than Older SMBs to use online/mobile banking tools, Younger SMBs in more developed markets want their bank to check in on them, and Next Gen SMBs in France and Spain report struggling with business insights.
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All data points: Material+. "Next Gen Small Business Owners Survey,” 2024. Commissioned by Visa. Online survey of 1,481 SMB Owner and/or Financial Decision Maker (DMs) across 6 countries globally.