Future of Small Business Report

The third segment of the "Intuit Future of Small Business Report" was released this week (originally due Q4 2007). Titled "The New Entrepreneurial Economy" this segment reveals trends helping small businesses thrive in the coming 10 years.

The report is sponsored by Intuit Inc. (Nasdaq: INTU) and authored by the Institute for the Future. Like the first two segments of the report, it's a great read. This portion focuses on three issues beneficial to small business:

• Brain Meets Brawn to Create Opportunities for Small Business - The emergence of barbell-like economic structures [a few giant corporations on one end, a relatively small number of mid-sized firms in the middle, and a large group of small businesses balancing the other end] will drive new business collaborations, creating greater opportunity and profitability for small business.
• Barriers Down, Small Business Opportunities Up - Access to big business infrastructure will expand, making their sophisticated technologies available to small and personal businesses, at lower risk, with a variable cost structure.
• The Next Wave of Globalization Will be Driven by Small Business - Muted trade barriers, improved technology, and professional and social networks across borders will facilitate small business access to new markets.

If you recall, the first installment of the report revealed the changing face of small business. The second installment examined technology trends and their impact on small business formation and operation.

The Future of Small Business

Intuit offers a fascinating look at the next decade of American business in the Intuit Future of Small Business Report, a three phase study authored by the Institute for the Future.

Phase one, released in January, focused on the dramatic changes in the face of small business, as seasoned baby boomers, kids fresh out of high school, mid-career women, "mompreneurs" and new immigrants come together to create the most diverse pool of entrepreneurs ever.

The disruptions that have beset workers -- economic, social and technological change — and an increased interest in flexible work schedules — will produce a more independent workforce seeking a better work-life balance.

Phase two of the report was released June 26, and finds that tomorrow's successful small business owners will be far more reliant on technology than their current counterparts. They'll be more connected in a mobile world, market to customers in ways only imagined today and blur the lines between the virtual and physical worlds as the hype surrounding today's technology becomes tomorrow's reality. The findings include three emerging technology trends that will revolutionize the very nature of running a small business:

• On My Time, On My Terms – In a connected world, small business management will increasingly be "on my time" and "on my terms" for owners.
• Global, Local, Virtual – The evolution of the Web will fuel small business formation, operations and innovation.
• From "Push" to "Pull" – The small business marketing approach will shift from "push" to "pull."

The very nature of local business, retail and service included, is dramatically shifting. Anyone in the field of marketing to, or for, a local business should read this report.