A small to medium-sized business (SMB) is a company whose employee count and revenue fall below certain thresholds, distinguishing it from large enterprises. While the specific criteria vary globally by country and industry, SMBs are broadly characterized by their unique operational challenges and more constrained resources compared to their larger counterparts.
SMBs are the backbone of the global economy, representing the vast majority of businesses worldwide. They account for over 90% of all companies and provide more than half of total employment. This makes them fundamental engines for job creation and economic activity.
Beyond sheer numbers, these businesses are vital hubs for innovation and competition. They often introduce novel ideas and services, keeping larger markets dynamic and responsive. Their success directly fuels local economies, contributing significantly to regional growth and stability.
Despite their economic importance, SMBs navigate a landscape filled with significant hurdles. However, their unique structure also presents distinct opportunities for growth and innovation, particularly in leveraging new technologies.
While often used interchangeably, the terms SMB and SME carry different connotations and are preferred in distinct contexts.
Sustainable growth for SMBs hinges on smart, targeted strategies that maximize limited resources. By leveraging their natural agility, they can focus on specific areas to expand their footprint and customer base. Key approaches often involve a mix of market expansion, technological adoption, and customer-centric initiatives.
Adopting new technologies allows SMBs to overcome traditional limitations and innovate effectively.
How does an SMB differ from a startup?
SMBs typically pursue sustainable, profitable growth within an established market, often through self-funding. Startups are geared for rapid scaling, usually backed by venture capital with a high-risk model focused on disrupting or creating new markets.
What is the biggest operational challenge for SMBs?
Beyond securing financing, a major challenge is talent acquisition and retention. SMBs often struggle to compete with the salaries and brand recognition of larger corporations, making it difficult to attract and keep the skilled employees needed for growth.
Why is technology adoption so critical for SMBs?
Technology is a great equalizer, allowing SMBs to automate tasks, improve efficiency, and access larger markets. It enables them to compete effectively with bigger players by leveraging data for smarter decisions and delivering better customer experiences.
An Application Programming Interface (API) is a set of rules that lets different software applications talk to each other and share information.
Pipeline coverage is a key sales metric. It's the ratio of your total open pipeline value to your sales quota for a specific period.
Data cleansing, or data scrubbing, is the process of detecting and correcting inaccurate records from a dataset to improve data quality.
Content curation involves gathering, organizing, and sharing the most relevant online content on a specific topic for a particular audience.
Remote sales is selling from a distance. Reps use digital tools to connect with prospects and close deals without meeting them in person.
Application Performance Management (APM) monitors and manages an application's performance, availability, and the experience of its end-users.
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SFDC stands for Salesforce Dot Com, a popular cloud-based CRM platform that helps companies manage their customer interactions and data.
Cold calling is a sales tactic where reps contact potential customers by phone who haven't previously expressed interest in their product or service.
Programmatic advertising uses AI and real-time bidding to automate the buying and selling of digital ad space, targeting specific audiences.
Expansion revenue is the extra money a business makes from its current customers via upgrades, new products, or additional services.
Fulfillment logistics is the entire process of getting an order to a customer, from storing inventory to picking, packing, and final shipment.
ClickFunnels is a popular online tool that lets entrepreneurs easily build sales funnels to guide potential customers through the buying process.
A persona map visually outlines a target customer, detailing their goals, behaviors, and pain points to help your team build genuine empathy.
Loyalty programs are marketing strategies designed to reward repeat customers. They offer incentives like discounts or exclusive access to encourage retention.
Funnel analysis is a method for understanding the steps users take to complete a goal, revealing where they drop off in the conversion process.
A product champion is an internal evangelist who drives a product's adoption and success by ensuring it solves real problems for their team.
Demographic segmentation divides a market into groups based on traits like age, gender, and income, allowing for more targeted marketing efforts.
Customer loyalty is a customer’s devotion to a brand, shown by their repeat purchases and engagement, driven by positive experiences and trust.
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Content Rights Management involves controlling the use and distribution of copyrighted digital media to protect intellectual property.
A Target Account List (TAL) is a focused list of high-value companies that a business specifically aims to convert into customers.
A Service Level Agreement (SLA) is a contract defining the level of service between a provider and a client, including metrics and penalties.
A Master Service Agreement (MSA) is a foundational contract that sets the general terms for an ongoing business relationship between two parties.
A field sales representative, or outside sales rep, travels to meet prospects in person, selling products or services directly within their territory.
Marketing automation uses software to automate repetitive marketing tasks, such as email marketing, social media posting, and ad campaigns.
Prospecting is the process of identifying potential customers, or prospects, to build a sales pipeline and generate new business opportunities.
A weighted sales pipeline forecasts revenue by assigning a closing probability to each deal, giving a more accurate picture of potential income.
A marketing automation platform is software that automates marketing actions. It helps manage tasks like email campaigns and lead nurturing.
Revenue Operations (RevOps) is a business function that aligns a company's sales, marketing, and customer service teams to drive predictable revenue.
Contact discovery is the process of finding accurate contact details for potential leads, including names, emails, phone numbers, and job titles.
Lead conversion is the process of turning a prospect into a customer by getting them to complete a desired action, such as making a purchase.
A Value-Added Reseller (VAR) is a company that adds features or services to an existing product, then resells it as an integrated solution.
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Total Audience Measurement (TAM) provides a holistic view of content consumption, tracking viewership across all platforms and devices.
Internal signals are data points from your own systems, like website visits or product usage, that indicate a customer's buying intent.
Psychographics categorizes people by their attitudes, interests, and lifestyles, revealing the 'why' behind their purchasing decisions.
A needs assessment is the process of identifying the gap between a company's current state and its desired future state.
“Always Be Closing” (ABC) is a sales mantra meaning every action a salesperson takes should be with the ultimate goal of closing the sale.
A Champion/Challenger test pits a new 'challenger' against the current best-performing 'champion' to see which one performs better.
Deal closing is the final step in a sales cycle. It's when a prospect signs a contract and officially converts into a paying customer.
Analytical CRM analyzes customer data to uncover actionable insights, helping businesses make smarter decisions and improve customer interactions.
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A stakeholder is any individual, group, or party that has an interest in an organization and the outcomes of its actions.
Sales acceleration refers to strategies and technologies designed to speed up the sales cycle, enabling reps to close more deals, faster.
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Personalization in sales means tailoring outreach to a prospect's specific needs, interests, and context to make communication more relevant.
Trigger marketing uses customer actions or events to automatically send highly relevant, personalized messages at the perfect moment.
Marketing attribution is the process of identifying which touchpoints contribute to a conversion and assigning value to each of them.
Enrichment is the process of adding third-party data to your existing customer profiles to get a more complete picture of your leads.
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Account View-Through Rate (AVTR) is the percentage of target accounts that see an ad and later visit your website without clicking on it.
Dynamic segments are self-updating lists that group contacts based on real-time data, ensuring your outreach is always timely and relevant.
A sales dialer is software that automates outbound calling for sales teams, allowing reps to connect with more prospects in less time.
Robotic Process Automation (RPA) uses software bots to mimic human actions and automate repetitive, rules-based tasks on digital systems.
A competitive landscape is an analysis of your direct and indirect competitors, revealing their strengths, weaknesses, and market positioning.
Single Sign-On (SSO) is an authentication method allowing users to access multiple applications with one set of login credentials.
Search Engine Marketing (SEM) is a digital marketing strategy that uses paid tactics to increase a website's visibility in search engine results.
Digital advertising is the practice of delivering promotional content to users through various online and digital channels like social media or search engines.
Average Selling Price (ASP) is the average price at which a particular product or service is sold across different markets and channels.
Gated content is premium online material, like an ebook or webinar, that users can only access after providing their contact information.
Data privacy is an individual's right to control their personal information, including how it's collected, processed, stored, and shared.
Customer Retention Cost (CRC) is the total amount a company spends to keep an existing customer over a certain period of time.
Customer engagement is the ongoing, value-driven relationship a business builds with its customers to foster brand loyalty and awareness.
Lead enrichment tools are platforms that automatically add missing data to your leads, like contact info, firmographics, and buying signals.
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Video prospecting is the sales technique of sending personalized videos to potential customers to grab their attention and secure more meetings.
Customer segmentation is dividing customers into groups based on shared traits. This allows for more targeted and effective marketing efforts.
Docker is a tool that packages applications and their dependencies into isolated environments called containers for easy deployment and scaling.
Freemium is a business model offering a product's basic features for free, while charging for advanced or supplemental features.
A persona is a semi-fictional profile of your ideal customer, based on market research and real data about your existing customers.
A drip campaign is a series of automated messages sent to prospects or customers over time to nurture leads and drive engagement.
Siloed describes the isolation of data, teams, or systems within a company, which blocks collaboration and creates operational bottlenecks.
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Accounts Payable (AP) is the money a company owes its suppliers for goods or services bought on credit. It's listed as a current liability.
Time on site, or session duration, is a key web metric that tracks the total time a visitor spends on your website during a single visit.
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Data enrichment is the process of enhancing raw data by adding missing information from other sources, making it more complete and actionable.
The open rate is the percentage of recipients who opened an email. It's a primary indicator of a subject line's effectiveness.
A Request for Quotation (RFQ) is a document that a company sends to one or more suppliers to get a quote for specific products or services.
Cross-selling is a sales tactic of encouraging customers to purchase products or services that are related to what they're already buying.
Reverse logistics is the process for goods moving from the customer back to the seller, covering returns, repairs, recycling, and disposal.
Agile methodology is an iterative approach to project management and software development, focusing on delivering value in small, incremental steps.
A warm email is a message sent to a prospect with whom you have a pre-existing connection, like a mutual contact or a prior interaction.
Account mapping is comparing your customer list with a partner's to find common prospects and unlock new sales opportunities.
A closed question is a type of query that elicits a simple, often one-word answer like 'yes' or 'no,' or a specific, factual response.
An enterprise is a large-scale organization, often a corporation, defined by its complex structure and substantial number of employees.
A Data Management Platform (DMP) is a tech platform used to collect and manage data, mainly for digital marketing and advertising campaigns.
Sales pipeline management is the process of organizing, tracking, and managing potential deals through every stage of your sales funnel.
Subscription models are a business strategy where customers pay a recurring fee at regular intervals for access to a product or service.
Process automation uses technology to execute recurring tasks or processes, replacing manual effort to cut costs and boost efficiency.
Cross-Site Scripting (XSS) is a web security vulnerability that allows attackers to inject malicious scripts into trusted websites.
Serverless computing is a cloud model where the provider manages servers, so developers can focus on code without worrying about infrastructure.
Compliance testing ensures a product or system adheres to specific regulations, standards, or policies set by governing bodies or organizations.
A canary release is a deployment strategy where new software is rolled out to a small user group first, minimizing risk before a full release.
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Average Revenue per User (ARPU) is a key performance indicator that calculates the average revenue generated from each user or subscriber.
NoSQL ("Not only SQL") databases offer a flexible alternative to relational models, excelling at managing large and unstructured data sets.
GDPR compliance means following the EU's strict data protection laws to ensure the secure and lawful handling of personal data.
Marketing analytics involves measuring and analyzing marketing data to understand campaign performance and improve return on investment (ROI).