With 32 million small and medium businesses (SMBs) in the US and more being created every day – there was a record 5.4 million applications to form new businesses last year – service providers looking for growth in the enterprise segment need to make the most of this opportunity, says GlobalData, a leading data and analytics company.

Robert Pritchard, Senior Analyst at GlobalData, said: “The US SMB market is huge, fragmented, and diversified across geography, size, technology needs, and business strategy. Making up 47% of the private sector employee base, these businesses can range from an owner-manager who just needs a cellphone to a digital enterprise that is developing software solutions in the cloud; a coffee shop to a global professional services company.”

Success for service providers is based on rigorous segmentation of the market, a focus on their core differentiation, and an optimized go-to-market strategy which also exploits third-party channels.

Pritchard explains: “A balance between direct customer relationships and channel partners is a must for maximum market opportunity. The direct approach requires an understanding both of target enterprises’ needs and a realistic assessment of what service providers bring to the table – any incumbent mindset has to be dropped. It is the customer who chooses where to spend their budget.”

With SMBs driving growth in the business market and the economy, service providers need to focus on smart segmentation to identify their market sweet spot, leveraging their presence, brand, and portfolio.

Pritchard concludes: “As the economy resurges and with the COVID-19 pandemic increasingly under control, SMBs represent a fantastic opportunity for US service providers. COVID-19 has changed both working patterns and mindsets, driving this growth. For a service provider that gets its strategy right, there’s plenty of scope for growth.”